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Achieving financial sustainability in times of uncertainty

Revenue diversification for improved education and research outcomes
Educational finance Higher education Universities Australia

The funding needs of Australian universities are growing due to ever-increasing cost-bases, the need to invest to remain competitive and manage the long-term impact of the COVID-19 pandemic. While cost-out activities dominated the headlines over the last two turbulent years, 2022 has seen renewed focus on the revenue side of the ledger. Given the expected decrease in international student fees – the major revenue source used to-date to manage the variability in government funding – points to the need to continue to diversify revenues and grow funding sources as a means to hedge risks.

This report argues that revenue diversification initiatives can establish greater flexibility and control of financials, with profits to be re-invested in research and education outcomes. By focusing on new and improved product and service provision, a university can also enhance the value and experience for students, staff and the community.

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