Australia's universities, once envisioned as pillars of public good and intellectual advancement, have devolved into financial and social disasters, undermining the nation's economic stability and social fabric. The evidence, drawn from recent analyses and data, paints a damning picture of mismanagement, exploitation, and a betrayal of educational values. The sector's overreliance on international student fees, coupled with exorbitant executive salaries, rampant wage theft, and a shift toward low-quality "immigration mills," has created a system that prioritises profit over education, leaving students, staff, and society to bear the consequences.

Despite record-breaking revenue from international students—$15.7 billion in 2023-24, nearly triple the $5.4 billion a decade earlier—one in four Australian universities faces financial distress, with nine institutions slashing $650 million from budgets and cutting 2,200 jobs. This paradox, where unprecedented income coexists with deficits, points to gross mismanagement. The Australian Financial Review notes that international student enrolments hit 499,371 in 2024, a near tripling from 2005, yet universities claim financial strain, blaming "anti-migration policies." This excuse collapses under scrutiny: February 2025 saw 166,840 international student arrivals, up 13.5% from 2024 and 12.4% above pre-Covid peaks. The real culprit is wasteful spending and poor governance.

Vice-chancellor salaries, the highest globally, exemplify this profligacy. Over 300 university executives earn more than state premiers, with some, like Monash University's vice-chancellor, paid $1.6 million in 2023 despite a $9 million deficit. Meanwhile, universities spent $734 million on consultants in 2023, with the Australian National University alone allocating $54 million, including contracts to firms linked to its chancellor. This lavish expenditure, alongside $150,000 on travel by ANU's chancellor, contrasts starkly with job cuts and underfunded teaching, revealing a sector prioritising elite enrichment over operational sustainability.

The transformation of universities into "low-quality, high-volume immigration mills" has profound social consequences. Policymakers and universities have colluded to lower entry and teaching standards, offering generous student visa work rights and pathways to permanent residency to attract international students. This model, driven by the $15.7 billion fee bonanza, has degraded educational quality and strained social cohesion. The Guardian reports academics' concerns that universities turn a blind eye to international students' language deficiencies, with some unable to communicate effectively, undermining academic integrity. Tutorials conducted in foreign languages and rampant cheating via AI and ghostwriters further erode standards, as universities prioritise revenue over pedagogy.

This immigration-driven model also exacerbates Australia's housing crisis. International students, making up 4% of the rental market, compete with locals for scarce accommodation, driving up rents in a market already squeezed by billionaire developers and high interest rates. Macrobusiness.com.au argues universities should provide on-campus housing proportional to international enrolments, but instead, they "privatise gains" while Australians bear the social costs. Local students, forced to subsidise international peers through group assignments, face diminished educational experiences, with many, like former University of Queensland student Mei Yee, reporting that TAFE offered better learning than their overpriced degrees.

The social disaster extends to the exploitation of staff and students. Wage theft is rampant, with universities underpaying staff by over $400 million nationally, affecting 150,000 workers. The National Tertiary Education Union (NTEU) highlights that casualisation has left academics underpaid and overworked, with PhD students earning as little as $33,511 annually—below the minimum wage—while international PhD candidates pay up to $60,000 in tuition without employment rights. This precarious workforce struggles to deliver quality education, as casual staff lack time for feedback or course development, leaving students like Celine Gironda at the University of Newcastle feeling they receive "less education than in high school."

International students, often portrayed as wealthy, are vulnerable to scams and financial strain, relying on loans or family savings. The system's reliance on their fees—up to 40% of some universities' revenue—has created an unstable business model, with critics like Abul Rizvi arguing it sacrifices learning integrity for profit. The government's 2025 international student caps, aiming to reduce enrolments to 270,000, threaten further job losses (estimated at 14,000), but universities' refusal to reform governance ensures the cycle of exploitation continues.

Australian universities have lost their social license, as Dr. Raffaele Ciriello asserts, by prioritising corporate interests over education. Governance dominated by Big Four accounting firms and industry executives—holding up to half of council seats—has led to a focus on rankings-driven research rather than teaching or public benefit. The NTEU's report on "Ending Bad Governance" reveals that only 25% of governing body seats are held by staff, students, or graduates, sidelining stakeholders. This corporate hijacking, coupled with a colonial-era hierarchical model, contrasts with democratic European systems where faculty and students elect leaders, ensuring accountability.

The financial and social toll is staggering. Universities' addiction to international fees has not only failed to secure their finances but has also eroded public trust. Students face declining degree value, with completion rates at a decade-low, while staff endure job insecurity and wage theft. Society grapples with a housing crisis exacerbated by unchecked student inflows and a generation of graduates disillusioned by an education system that feels like a "degree factory." The Albanese government's underfunding, slashing real-term spending, further starves the sector, pushing it deeper into this unsustainable model.

Australia's universities are financial and social disasters, marked by wasteful spending, exploitative practices, and a betrayal of their educational mission. The $15.7 billion international student windfall has been squandered on executive salaries and consultants, not teaching or infrastructure, leaving institutions in deficit and cutting thousands of jobs. Socially, the immigration mill model degrades education, fuels housing shortages, and exploits students and staff, eroding trust in higher education. Without urgent governance reform—democratic oversight, fair wages, and a pivot to quality over quantity—the sector will continue to harm society, serving as a cautionary tale of corporatisation gone awry.

In short, close down the universities to save Australian society from their toxins!

https://www.macrobusiness.com.au/2025/04/australian-universities-are-financial-black-holes/

"Australia's universities must rank as the nation's most poorly run organisations.

The number of commencing full-fee-paying international students hit a record high of 215,000 in 2024, roughly triple the number recorded in 2005.

The total number of international enrolments also hit a record high of 499,371 in 2024, nearly triple the 178.806 total enrolments recorded in 2005.

As a result, fees paid by international students at Australia's universities hit a record high of $15.7 billion in 2023-24, according to the ABS.

The $15.7 billion of international student university fees in 2024 were almost triple the $5.4 billion recorded a decade earlier in 2014.

Despite the record international enrolments and fees, one quarter of Australian universities reportedly struggle financially and have implemented cost-cutting measures.

"Thousands of jobs [are] on the chopping block as their finances reel from falling student demand and anti-migration policies", reported AFR education editor Julie Hare.

"The combined effect of restructuring efforts at nine universities will slice about $650 million from budgets and mean the loss of at least 2,200 jobs".

It is hard to take Hare's complaint of "anti immigration policies" seriously when the latest data from the Department of Education shows that international student commencements and enrolments are at record levels.

International student arrivals at universities in February 2025 also hit a record high of 166,840. This was 19,860 (13.5%) higher than 2024 and 18,390 (12.4%) higher than the February 2019 pre-COVID-19 peak.

The reality is that Australia's universities are struggling financially due to poor management and waste.

Vice-chancellor salaries in Australia are the highest globally and tower over those of other education professionals.

More than 300 Australian university executives earn more than state premiers.

Meanwhile, university wage theft is rife, with universities underpaying staff by over $400 million nationally.

The reality is that policymakers have colluded with the education sector to create a system that rewards university executives with large salaries to transform their institutions into low-quality, high-volume immigration mills.

The Australian government offered generous work rights for student visas and prospects for permanent residency.

Australian institutions lowered entry and teaching standards to attract international students.

The cash bonanza that followed has been p*ssed up against the wall, with universities continuing to cry poor and lashing out against non-existent migration cuts."