Federation University 2024 Annual Report tabled in Victorian Parliament
Federation University Australia’s Annual Report for 2024 was tabled in the Victorian State Parliament today.
The 2024 report reflects the financial impacts of changes to international student visa arrangements, compounded by changing market demand and regional economic trends, which contributed to the university recording a net operating deficit of $26.2 million compared to a budgeted deficit of $30.7 million.
An increase in revenue of $18.1 million (6.1 per cent), combined with a $13.9 million (3.9 per cent) decrease in expenditure (excluding one-off impairment expense in 2023) resulted in the university recording a lower deficit than in 2023 ($81.0 million).
Federation’s Vice-Chancellor and President, Professor Duncan Bentley, said that although the deficit was below that forecast — and much smaller than the 2023 deficit — it was a reminder of the challenges facing the higher education sector and served to motivate the University to continue its strategic efforts to regain financial stability.
Federation’s operating environment has changed over recent years, as it has for the entire higher education sector. Currently, Federation’s student allocations do not reflect the demand the University is seeing for its higher education programs in Victoria's regions and outer suburbs.
Based on the current allocation system, the University is on track to reach the student caps for both domestic and international student cohorts in 2026, which will limit its ability to boost revenue through increased student recruitment or address the skill gaps in the regions in which it operates.
Federation welcomes the incoming Federal Government's commitment to reform how higher education places are allocated. There is a critical opportunity to place the University in the strongest position to support the aspirations to boost post-secondary attainment, make education more affordable and grow productivity in these areas.
In March 2024, Federation University embarked on a significant transformation program to reduce ongoing annual expenditure by $40 million to ensure Federation’s sustainability by 2026.
Returning to surplus is crucial for Federation to fulfill its mission of transforming lives and uplifting communities in regional and outer-suburban Victoria, particularly for individuals from lower socio-economic backgrounds.
Last year, Federation University Australia was ranked the #1 university in Australia by the Good Universities Guide for first-in-family enrolments for the seventh year in a row.
The transformation program centres on three objectives:
- Delivering an exceptional student experience
- Streamlining course offerings
- Implementing greater efficiency across services and associated operating model
As Federation implements its strategy to achieve a sustainable future, it remains unwavering in its focus on the student experience, including improved technology and high-quality teaching and research, ensuring it can offer equitable access to tertiary education and research innovation across Victoria.
The 2024 report highlights the improvements Federation has made to deliver a high-quality learner experience and improve educational and graduate outcomes, driven by the efforts of a vibrant community of staff, students and employer partners.
Federation is also transforming into Australia’s first fully o-operative education university to maximise the impact of higher education and training in the regional and outer suburban communities it serves. This transformation means every student will have a closer connection to local employers through paid placements and programs designed to meet the objectives of local industry.
The Federation University Australia 2024 Annual Report is available online.
Quotes attributable to Federation University Australia Vice-Chancellor and President Professor Duncan Bentley
“Like most Australian universities — and all regional universities — and despite the commitment and hard work of our staff, Federation has been challenged by a range of external pressures, including significant changes in government policy that have impacted revenue.”
“Recognising these challenges, the university has been implementing a comprehensive transformation program to reshape operations and ensure long-term sustainability.
“While the deficit reflects the immediate effect of these external changes, the actions we’re taking now to re-shape our operations will place the university on a clear path to long-term sustainability.”
About Federation University Australia
With a history spanning over 150 years, Federation University Australia is Victoria’s premier regional dual-sector university with campuses located in Ballarat, Berwick, Gippsland and Wimmera. From 2018-2024 Federation ranked number one in Australia for first-generation student enrolments. In a first for Australia, the globally recognised co-operative education model will be embedded across all Federation programs from 2026.