Community Update
Business Improvement Program
At the University of Newcastle, we’re making important changes to ensure we remain a strong, future-focused institution. Like many universities across Australia, we’re facing significant challenges, like rising costs, international student policy changes, and the need to fund major projects on our campuses, like essential upgrades to our underground electrical and utilities network, which will cost tens of millions of dollars.
We need to cover these costs ourselves, and we can only do that if we have a strong operating margin. While these pressures are not unique to us, we must act now to ensure our University remains sustainable in the long term.
Understanding our financial position
Although our published financial statements appear to show a surplus, this includes one-off items such as donations, grants, and restricted funds that cannot be used for teaching and research. When you take those out, the core operating result – which reflects our day-to-day operations – shows a $16.3 million deficit in 2024. The Auditor General of NSW has verified our financial results.
This isn’t a one-off. We’ve recorded deficits in six of the past eight years. We’re spending more than we’re earning, and that’s not sustainable.
Business Improvement Program
We are currently undertaking a Business Improvement Program aimed at delivering at least $20.6 million in ongoing annual savings, within an overall budget of $1 billion. These savings will come from process and system improvements, reduced duplication, and aligning our work to strategic priorities.
As part of the work undertaken over the past 12 months, Colleges and Divisions have identified opportunities for further improvement. Implementing these changes now will help strengthen our position.
To be financially sustainable and to support ongoing investments in key areas, including vital upgrades to infrastructure and digital systems, the University needs to achieve annual surpluses in the range of $30 to $50 million in the coming years. This is about keeping the University strong for the future.
Staffing and workforce considerations
Staffing accounts for about 60 percent of our total expenditure. While we’ve already achieved significant savings in non-salary areas - such as re-tendering supplier contracts, which will save approximately $10 million annually - workforce changes are also required.
As outlined in the change proposals shared with staff, there is currently a proposed net reduction of around 28 ongoing occupied positions*. However, this may change following consultation. In many cases, we’re focusing on not filling vacant positions and offering redeployment where possible. Some fixed-term contracts will end, while a similar number of staff on fixed-term arrangements will be offered ongoing positions.
Staff consultation and feedback
Staff consultation has now closed for all three Colleges, the Library, and the Academic Division. We received more than 1,000 submissions from staff across the University, which is a strong reflection of the engagement and commitment to shaping these changes. Several areas requested and were granted extensions to their consultation periods.
Our local leaders will now review this feedback, alongside our Staff Consultative Committee, which includes both staff and union representatives. Their input will be taken into consideration as we finalise the changes. Consultation on localised changes within some of our divisions is expected to begin in the coming weeks.
Academic programs and student demand
We regularly review our programs to ensure they reflect student demand and align with our strategic priorities. In 2026, a small number of programs will be discontinued due to factors such as consistently low enrolments. At the same time, we’ll be introducing a number of new programs in areas of strong student and industry interest. Importantly, all current students in affected programs will be fully supported to complete their degrees.
Supporting our University community through change
We recognise that change of this nature can be difficult. The University has a robust health and safety framework integrated into our workplace change processes to support staff and minimise impact through periods of workplace change. We encourage staff with genuine concerns relating to the current change processes to utilise the engagement channels and support services available to them.
These changes are critical to secure the future of the University. The consequences of not taking action now would be far greater, and risk our ability to deliver high-quality education and research for our communities. These changes will allow us to continue to serve our region as a world-class university, serving our students, staff, and communities now and into the future.
* Last updated: 13 Oct 2025 - update to proposed net reduction figure
The University of Newcastle acknowledges the traditional custodians of the lands within our footprint areas: Awabakal, Darkinjung, Biripai, Worimi, Wonnarua, and Eora Nations. We also pay respect to the wisdom of our Elders past and present.