The University of Canberra has reported a better-than-expected financial position but with uncertainty surrounding the return of international students the vice-chancellor warns the toughest times are still ahead.
The University of Canberra annual report revealed a net surplus of $29.8 million, an increase of $10.3 million compared to 2019.
The university saw a decrease in various income streams, including $3.9 million from student accommodation and $1.3 million in parking revenue caused by the Covid-induced campus shutdown.
But it also received a $4 million one-off payment from the Commonwealth government as part of a $1 billion research rescue package for all universities.
The university was able to reduce its expenses by cutting travel costs by $4.2 million, a $5.5 million drop in payments to academic partners and spending $2 million less on student scholarship payments and $2.2 million less on general materials and expenses.
University of Canberra vice-chancellor Paddy Nixon said management was initially expecting a deficit but ended the year with an improved financial situation.
"Mainly it's down to tight financial management and a significant amount of contribution from UC staff who worked exceptionally hard to make sure that we were sustainable during that period. So a lot of savings without affecting the staffing," he said.
The university had a hiring freeze during 2020 where vacant positions weren't replaced without a robust business case. The hiring freeze is no longer in place.
In 2020, the UC international student cohort was able to arrive before the travel restrictions came into force because the academic year started earlier than other universities.
Professor Nixon said this year the university was worse off because no new fee-paying international students were able to enter Australia.
"For me, this year we know what the issues are. Next year is the fundamental challenge for us. While borders remain closed that means the potential for international students' return is really limited.
"I think after three years of not having them, then we start to see the real financial implications and those are things that I don't think it will be as easy to manage through and we are not alone in this. I think that will have really fundamental impacts across the whole of the higher education system."
The Morrison government is yet to sign off on the NSW-led plan to return international students on charter flights and quarantine them in Sydney.
Prof Nixon said he was expecting the federal government to take some time to put the return plan in motion as the vaccine rollout ramps up. The university is working on the assumption that borders will open mid-2022.
UC revealed a new master plan for its Bruce campus in March.
Prof Nixon said discussions had progressed with commercial partners but he was not ready to disclose any details.
"I'm really very positive about the opportunities that are coming," he said.
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