Attributed to Vice-Chancellor, Professor Alex Zelinsky AO, Statement from the University on financial position
The Australian Institute’s analysis of the University of Newcastle’s financial position misunderstands how Australian universities operate. The claims made do not stand up to scrutiny.
Although our financial statements appear sound, the surplus referred to by the Australian Institute is the University’s total financial result, which includes philanthropic income, restricted grants, and investment returns – these are funds that cannot be used to cover the cost of day-to-day operations. For an accurate view of our financial health, we focus on the adjusted (core) operating result, which excludes these items.
We are currently spending more than we earn to deliver our core mission of teaching and research activities - a challenge shared across Australia’s higher education sector due to rising costs, economic pressures, and international student policy changes.
In 2024, we reported a $16.3 million adjusted operating deficit, and this isn’t a one-off. We reported adjusted operating deficits in six of the past eight years, which is clearly unsustainable and requires action now.
In addition, while our net assets have increased in value, these assets largely consist of buildings, land, equipment, and infrastructure, which are essential to University operations and cannot be sold to fund our day-to-day operations. Suggesting that growing net assets equates to financial stability misunderstands the nature of these assets.
We have been operating for 60 years and many of our ageing facilities require essential upgrades. We must cover these costs on our own, and that is only possible with a healthy operating surplus. 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 adjusted operating surpluses in the range of $30 to $50 million in the coming years. Our current work to identify savings and efficiencies is about securing our future, so we can continue delivering world-class education and research.
The University is rightly held to the highest standards of accountability. Every year, we publish independently audited Financial Statements in our Annual Report, detailing our overall financial position and performance. These Financial Statements comply with Australian Accounting Standards and are audited by the NSW Audit Office.
Our Financial Statements show the University’s overall results, but they include funds that are restricted for specific purposes, like research or donations. These funds cannot be used for everyday expenses. That’s why we also report our adjusted operating result, which gives a clearer picture of the funds available for running the University.
Our Annual Report is available in full on the University’s website.
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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.