Universities lose $12,000 per domestic student

“New data revealed domestic student fees fall $12,655 short of the actual costs to educate them, whilst international student enrolments bumped up 7.5 per cent. A report from the NSW auditor-general showed that operating costs per student for each of the 10 NSW universities was $37,868. However, institutions only receive $25,213 per domestic student in fees and government grants, compared to $41,381 in fees from overseas students, which deliver a nine per cent profit margin. The report also showed that NSW universities enrolled an extra 10,472 international students in 2025 compared to 2024. The commencing overseas students mostly study at the University of NSW (3,499), Southern Cross University (1,836), the University of Technology Sydney (1,486) and Macquarie University (1,366). The University of NSW made $1.73bn in revenue from international students last year, and $931 million from domestic students. The University of Wollongong lost 896 overseas student places in 2025 compared to 2024, as did the University of New England, which lost 235 places. Tabling report - Universities 2025_0 Downloa The University of Sydney made $1.72bn from overseas student fees and $898 million from domestic students. The University of New England had the least revenue from international students at $20 million, compared to $248 from domestic students. More on this story: New courses for intl students on hold | Intl students underpaid $3.18bn in wages | 1% business levy could fund universities: Shorten Universities have historically cross-subsidised domestic student expenses with extra revenue from overseas students, who pay fees upfront instead of using the HECS-HELP system. But, international student commencements were tightened for all universities last year in a move the government said would ease rental costs in cities and ensure domestic students remained a majority in classrooms. Universities Australia has consistently called for more funding for universities after the introduction of this policy. The body also advocates for Australia to remain a welcoming environment for prospective overseas students – something recent policy change has discouraged, UA chief executive Luke Sheehy argued. “Attracting international students to come and study here and then participate in our workforce is being part of the excellent formula that we’ve had for this world-class sector for many, many decades,” Mr Sheehy said. “Taking a sledgehammer to it and saying to the outside world, we are closed for business is economically reckless. “There are more than 30 million students in the world right now that are looking for a world-class education.” The Australian Tertiary Education Commission will calculate how much it costs to educate each student in each course, which will inform changes to how much universities charge for each course. Expenses at the 10 universities also increased by $1bn in 2025, to $14.5bn, fuelled by employee expenses.

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