"I have been up front with Australia's university leaders that in the current budget environment, new injections of funding for universities in response to the Base Funding Review are not realistic.

"What this report shows is that Australian universities are going from financial strength to strength and that they are in a strong position to consolidate these gains next year.

"It is vital universities now demonstrate that these extra resources can produce the quality graduates Australia needs for its future workforce and improved productivity."


According to the telegraph.com.au

The Finance 2010: Financial Reports of Higher Education Providers, to be released today, showed NSW universities were among the wealthiest in the country, with surpluses of more than $648 million.

The University of NSW topped the list with a surplus of $141.1 million, followed by The University of Sydney with $113.7 million, Macquarie University with $100.6 million and the University of Wollongong with a $100.4 million surplus.

The University of Western Sydney had $61.4 million while other universities in NSW reported surpluses of between $36 million and $2.3 million.


According to adelaidenow.com.au

University of Adelaide, University of South Australia and Flinders University were all listed among the 18 Australian universities that returned surpluses of more than $50 million this year.

University of South Australia returned the state's biggest surplus of $70 million.

Federal Tertiary Education Minister Chris Evans said the report proved universities had recovered from the global financial crisis and he told uni bosses to invest more in their students.

             Surpluses versus Profits

Universities Australia has welcomed the Government's release of Finance 2010, which provides data for the higher education sector, and Minster Evans' statement that the figures therein are evidence that universities are well managed and operating with prudent margins; an outcome also reflecting three years of improved financial support by government.

In releasing these figures the Minister emphasised how university surpluses increased to $1.95 billion in 2010, showing that "...Australian universities are going from financial strength to strength."*

Universities Australia however has cautioned the Government to be very careful indeed in interpreting this headline outcome lest it undermine good policy.

Universities Australia CEO, Dr Glenn Withers clarified, "Especial care needs to be taken when viewing reported surpluses. These are not 'profits'. In fact, half or more of the funds referred to relate to future funding commitments, especially for capital works. Much of the recent increase in university funding by government has in fact been in infrastructure, through draw-down of the Higher Education Investment Fund, and this has been very beneficial.

"Universities quite prudently hold monies on their books to deal with volatile times and for future committed spending. Indeed a large share of the 'surpluses' are matching funds raised by universities to meet co-funding requirements set by the government. If the government says the surpluses are evidence the recommendations of its own successive independent inquiries in relation to base funding can be put aside, then this would not be a positive policy development."

Dr Withers emphasised that, "The Government has done a tremendous amount for the higher education sector since it came into office, including the capital funding provision and the indexation, indirect grant cost and demand -driven policies which are now being phased in. To offset such good work by then penalising universities for meeting government requirements through their management of surpluses would be less than helpful.

"The 'surpluses' are evidence of complying with government policy intention at a time when infrastructure expansion is urgently needed to meet government participation targets. They are funds which ensure universities are in a position to provide the resources and infrastructure necessary to support teaching, learning and research and to provide a rich university environment for our students.

"Universities Australia would be very willing to sit down and work with Government to obtain more realistic estimations of the sector's true operating surpluses, before these current conventions in financial reporting are allowed to unreasonably dictate key policy settings, such as the response to the Base Funding Review," Dr Withers concluded.