UOW budget cuts ahead of $24m hit to international student income

And more cuts may be on the way with another "rapid review" to be presented soon.

Schools and faculties at UOW have been asked to make three per cent cuts across their operations to find an estimated $18 million in savings.

The main staff union is warning job cuts are an inevitable result, and some low-enrolment subjects may not be run. UOW has said subjects are always reviewed to ensure they are meeting "market demand".

While caps on international student numbers have yet to pass Federal Parliament, UOW says the new Migration Strategy and changes to visa processing have already had an impact on international enrolments.

'Core v non-critical business'

The budget cuts are a decision of UOW's powerful Finance and Infrastructure Committee (FIC), a delegated body of the UOW University Council which includes Chancellor Michael Still, made on May 10.

The FIC warned the impact of fewer international students would mean "it is unlikely we will achieve the financial results originally projected for 2024".

The FIC told staff in late May that it would be deciding was was "core versus non-critical business" and implied there would be greater cuts on the way.

"FIC endorsed a series of one-off short-term measures, including an overall reduction in the 2024 operating budget by 3 per cent for the whole university," its message said.

"This will not be applied as a blanket measure. We know that in some areas a 3 per cent cut will undermine critical activities and existing commitments.

"Reductions will instead be applied differentially to ensure continuity, particularly for our students. Faculty and portfolio leads will be responsible for managing these reductions with due care. In the meantime, you can help by reviewing expenditure that can be deferred or avoided."

Another "rapid review" to deliver medium and long-term budget cuts will be presented to the next FIC meeting in August, covering all faculties and portfolios.

'A cut students will experience'

National Tertiary Education Union branch president Dr Andrew Whelan said the cuts were to be for the next semester, which starts in less than four weeks' time.

"If you kick it down to the school level [it's] a cut that students see and experience," he said.

"The way that the 3 per cent cut is implemented at the school level is by dropping subjects in order to attempt to save on the casual spend for tutors.

"There are what appear to be mass cancellations of individual subjects ... but the language that is used is about 'resting' subjects.

"So the choices available to students are being restricted in order to accommodate this 3 per cent cut."

UOW reported a $95 million loss for 2023, a result which was held up by increased international student revenue.

UOW's reliance on revenue from fee-paying international students was clear the institution's most recent annual report, where international students studying in Wollongong accounted for $170 million of the university's income.

Student tuition fees made up two-thirds of UOW's income - about $540 million - according to the 2023 annual report, with domestic government-supported students accounting for $277 million.

"Onshore" international student income had increased 33 per cent from $128 million the previous year.

"Whilst international student revenue improved in 2023 compared to the prior year, it is still well behind pre-COVID levels," the report stated.

This is the case across the higher education sector in Australia, with many universities in a more precarious position with international students than UOW.

Migration law changes blamed

A UOW spokesman said the moves were in response to migration law changes earlier this year.

"The changes to the Australian Government's Migration Strategy have impacted international student enrolments right across the university sector," he said.

"These changes have been in place since the start of the year and have already had a significant impact on revenue.

"It is standard university process to review course offerings regularly to ensure we are responding to market demand.

"The Government's reforms to migration, and to the higher education sector through the Universities Accord process, present challenges for all Australian universities, but also bring opportunities.

"The University of Wollongong will continue to work closely with the Australian Government on its plans for a managed growth strategy for international education."

UOW is less reliant than other universities on a small number of source countries for the majority of international revenue.

UOW has experienced a series of high-level departures over the past year which has included its vice-chancellor, chancellor, its head of global strategy, the executive dean of business and law and its top human resources chief.

UOW's $95 million loss for 2023 was in large part contributed to by a $44 million writedown of its Hong Kong college campus, where enrolments are down to one-third of capacity.

The Finance and Infrastructure Committee "is the Executive Committee of Council delegated to take action on urgent issues between Council meetings", UOW's website states.

The university website states that the FIC's members include UOW chancellor Michael Still, acting vice-chancellor David Currow and two external members of the University Council: FIC chair, former PricewaterhouseCoopers partner Merran Dawson, and Pengana Capital director and former Macquarie Bank director David Groves.

Professor John Dewar commenced as interim vice-chancellor this week. While he may take Professor Currow's place on the FIC this is not yet apparent from the website.

The FIC's other two members are Dale Clark, whose background is in property development, and company director Elli Baker, neither of whom are members of the council.

Its terms of reference were approved by the University Council on March 22, 2024.