Hurley, Peter, Hoang, Sam ORCID: 0000-0003-3131-3803 and Hildebrandt, Melinda (2021) Australian Investment in Higher Education. Project Report. Victoria University, Melbourne, Victoria.

Abstract

In 2020, Australian universities faced significant financial disruptions after decades of steady growth. Historically, the sector had successfully navigated revenue shifts through strategic expansions and policy adaptations (Howard, 2021). The COVID-19 pandemic, border closures, and government reforms have posed unprecedented challenges. This research examines the financial impact on universities, revealing a 6% overall revenue decline in 2020—the first in over a decade—and a 9% drop in international student revenue compared to 2019. Despite fifteen universities reporting losses, the sector maintained a small surplus. However, future prospects remain uncertain as international student enrolments continue to decline at an annualized rate of 20 to 25%, potentially resulting in significant revenue losses. The years 2021, 2022, and 2023 are critical as universities navigate these challenges, serving as a 'proving ground' (Marshman & Larkins, 2021) for their strategies. This research highlights the need for adaptive approaches and informed policy-making to ensure the sector's resilience and financial stability. By closely analyzing these trends, stakeholders can better understand and respond to the evolving challenges in Australia's higher education landscape.

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