University of Adelaide forecasts $90 million revenue shortfall — ABC News Australia
The new University of Adelaide in Australia is falling short of its targets for enrolling international students and forecasts a $90 million revenue shortfall. The institution links the decline in enrolments to changes in federal migration policy, ABC News Australia reports.
The university began operating in January following an approximately three-year process of merging the University of Adelaide and the University of South Australia. The state government provided a $464.5 million support package for the merger, including $30 million for measures to attract international students.
Student enrolment is declining
The merger business plan envisaged that by 2034 the new university would attract 6,000 more international students than the two predecessor institutions had in 2023. However, in 2026 the University of Adelaide enrolled 16,677 international students, while at this point last year the two universities had 20,820 such students.
In May, the university's vice-chancellor, Nicola Phillips, said that the number of international students enrolled in the first semester was 40% below the target. According to her, this meant a projected $90 million revenue shortfall. A university representative said that a similar percentage decline in enrolments was also recorded in the second semester.
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University criticises migration changes
Deputy Vice-Chancellor for International and External Engagement Jessica Gallagher said government measures had significantly affected Australia's attractiveness to international students and jeopardised the plan to attract an additional 6,000 people. Among these changes, she cited an increase in the cost of student visas to $2,500, a higher number of visa refusals, and the introduction of a soft cap on new enrolments.
According to Gallagher, the university was particularly affected by higher visa refusal rates for applicants from India, Bangladesh, Sri Lanka and Nepal. She warned that a further decline in the number of international students would have significant financial consequences.
Andrew Norton, a professor of higher education policy at Monash University, called the timing of the merger unfortunate, as it coincided with the federal government's decision to reduce the number of international students. In his view, due to the loss of tuition fee revenue, the university will almost certainly have to carry out further restructuring to reduce costs.
