University of Melbourne announces 2023 financial results

Today the University of Melbourne’s 2023 Annual Report was tabled in the Victorian Parliament. The report covers the period between 1 January and 31 December 2023.

The Annual Report demonstrates the University’s record of achievement during 2023 and highlights the University’s impact on society, locally and globally, through its core teaching, learning and research endeavours.

The report details the University’s financial performance in 2023, recording an operating deficit of $71 million which is in line with previous forecasts. In 2022, the University recorded a $104 million operating deficit.

The improved operating result is primarily due to growth in student revenue as student numbers approach pre-pandemic levels, including a higher number of international students in 2023 compared to 2022, and a reduction in costs associated with pandemic-related support.

These gains were partially offset by higher expenditure in 2023, due to increased operating costs associated with the growth of on-campus teaching and research activities, wage increases and inflation.

The University’s financial results also show a net surplus of $156 million, compared to a net deficit of $203 million in 2022. This improvement is primarily due to an overall gain from investments in 2023, compared to an investment loss of $279 million in 2022. This reflects year-on-year changes in market conditions that impact underlying investment performance.  

University of Melbourne Acting Vice-President (Administration & Finance) and Chief Operating Officer Ms Katerina Kapobassis said the University continues to meet the targets it set in its phased approach to financial stability following the pandemic.

“While 2023’s operating result shows a deficit, the result was expected,” said Ms Kapobassis. “The University remains on track to return to a breakeven operating result by the end of 2025 as student enrolments return to pre-pandemic levels and more students return to our campuses to resume face-to-face teaching.”

Ms Kapobassis said the University will maintain its prudent approach to financial management.

“The University expects to record a smaller operating deficit in 2024, however, we remain mindful of inflation and other factors that will impact the University’s financial position over the coming years, including a new payroll tax and potential costs associated with the Universities Accord.”

“The University will need to continue to adopt a measured approach to financial management in order to be prepared for these and other challenges, and to ensure that we’re equipped to continue delivering our core teaching, learning and research endeavours.”