The outcomes represented a significant improvement over 2020, when 16 universities reported deficits. But as earnings increased, institutions kept cutting their spending.
In the sector as a whole, expenses came to $33.6 billion in 2021, down from $33.9 billion in 2020 and $34.2 billion in 2019, and more than $5 billion less than total annual income.
Staff costs were significantly reduced by 5%, with academic staff costs falling by 4.6% and professional staff costs rising by 6.7%.
Payroll tax decreased by 5.3% as well.
Even though international student fees decreased by 5.4%, they still made up the second-largest source of income for universities ($8.7 billion), after the federal government ($20.2 billion).
Given the "shock to the system" the epidemic caused, according to Andrew Norton, professor of higher education policy at the Australian National University, it was a "pretty successful year" for the tertiary sector.
The primary factors, according to him, were higher-than-anticipated international student enrollment growth, much more government funding—mostly from one-time initiatives—and high investment revenue.
According to prior research results, "The Group of Eight [universities] did extraordinarily well, but they did earn the lion's share of [government] cash," he noted.
In 2020 and 2021, universities laid off a large number of employees. I believe it was overreaching, but at the time the decision was made, they believed significant revenue declines were very likely. 2022 will be the most challenging year of the crisis because the number of international students was returning, but not significantly, and because the additional $1.5 billion in funding won't be available.
Spending on employees as a percentage of income was at "nearly historic lows," according to Dr. Alison Barnes, national president of the NTEU.
"Investment income accounted for a sizable portion of the surplus," she stated. "Universities should invest in safe jobs rather than storing surpluses in investment funds."
Barnes claimed that universities "aggressively eliminated positions" and restructured as a result of the epidemic, but the data revealed that their "doomsday financial predictions" were unfounded.
Due to border limitations, there were fewer overseas students in 2020, which caused a decline in revenue for the tertiary education sector.
According to data made public by the federal government, there were 7% fewer full-time jobs in March 2021 than there were in March 2020 (121,364 versus 130,414).
As casual employees, who make up more than full and part-time personnel and represent roughly 30% of the university teaching employment in full-time terms, weren't included, the figure is probably a low estimate.
The enormous workload pressure and under-resourcing we're seeing in higher education are the result of that pricey and heartless shift, Barnes claimed.
She referred to the excess at the University of Sydney as "especially galling," considering that talks with the NTEU regarding its most recent enterprise bargaining agreement are still continuing.
"Reducing casualization would make a tremendous difference for staff and kids," she added, if even a small portion of the excess was put toward it.
The University of Sydney said in a statement that its strong operating result was a "one-off," the consequence of cost-cutting measures put in place at the beginning of the pandemic, as well as "better than projected" enrollment and retention rates for students.
"It also contained a succession of one-time returns, such as real estate sales and high investment yields, as well as donor gifts and bequests that can only be used as directed," the statement read.
"We genuinely cherish our personnel and recognize the need of maintaining our sector-leading pay and providing the finest staff terms and conditions if we are to continue attracting and retaining the best people."
According to a University of Melbourne spokeswoman, the surplus wouldn't have been possible without a surprise $111 million financial allocation and a $254 million decrease in spending.
"The institution would have faced a significant operating loss without the award and the appropriate action needed to decrease expenditures," they claimed.
The University of Melbourne's surplus comes amid a number of salary disputes, including a forthcoming federal court action regarding the alleged underpayment of $154,400 over three years to 14 casual professors. It has already paid back employees a total of $45 million.
A "complete program of work," according to the spokesperson, is underway to detect any improper behavior and guarantee that staff members receive full restitution.
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