2023 was marked by a return to vibrant campus life and tangible progress across the directions outlined in our Knowledge with Action strategy.
The University launched its new Education Plan, outlining our unique pedagogy, announced a commitment to reinvest $250 million in Vietnam, and made a significant contribution to the biggest review of Australia’s higher education system since 2008, the Australian Universities Accord.
Looking ahead, we will continue to progress our aspirations according to the three horizons of our strategy to 2031 and remain confident that this will accelerate our ambition to be a university of impact in our region and beyond, transforming lives and livelihoods for generations to come.
2023 financial summary
While 2023 saw the first increase in international student revenue in four years, the University remained in a recovery phase, with its operating result impacted by ongoing effects of the pandemic alongside inflationary impacts and the rising cost of living.
The consolidated 2023 net operating result for the RMIT Group – RMIT University in Australia and its controlled entities (RMIT Vietnam, RMIT Online, RMIT Training and RMIT Europe) – was a net deficit of $11.6 million.
RMIT University in Australia incurred a pre-tax operating deficit of $58.7 million, compared to a $73.0 million deficit in 2022.
The University’s total revenue increased by 10 per cent to $1,387.1 million, up from $1,265.1 million in 2022.
Course fees and charges increased 16 per cent to $453.3 million, up from $392.2 million in 2022, driven by a return of international students. Revenue from international onshore (INTON) students rebounded by 18 per cent to $384.5 million, up from $325.1 million in 2022, while all other sources were broadly stable.
The University’s investment portfolio benefited from broad improvements in market conditions leading to gains of $16.9 million, as compared to a loss of $7.4 million in 2022.
Australian Government Financial Assistance increased 2 per cent year on year to $656.9 million up from $641.6 million in 2022, driven by increases in HECS-HELP, Education Research grants, and funding for the Australian Scholarship Awards (a new 2023 initiative), while the receipts under the Commonwealth Grant Scheme and FEE-HELP reduced by $19.9 million (the former due to the impact of the Job Ready Graduates program).
State and Local Government Financial Assistance decreased by 6 per cent to $64.6 million, down from $68.7 million in 2022. Recurrent grants for Vocational Education students increased by $7.5 million in line with a 12 per cent increase in students, while non-recurrent grants decreased by $11.7 million due to reduced funding from the International Education Resilience Fund bursaries.
At a Group level the deficit has been largely mitigated by the strong performance in Southeast Asia of RMIT Vietnam, delivering a surplus of $67.3 million. The surplus achieved by RMIT Vietnam remains in Vietnam and continues to strengthen their local balance sheet to support necessary future investments as we continue to build on 23 years of impact in-country. Our commitment in 2023 to reinvest $250 million, proudly announced alongside Prime Minister Albanese, firmly positions RMIT Vietnam’s operations as the heart of our regional network, and the base for our aspiration to weave collaborative networks across Southeast Asia and the broader Asia-Pacific region.
RMIT community
In 2023, RMIT had over 11,000 staff globally and more than 90,000 students studying at campuses in Australia and overseas.
The vibrancy of campus life returned, with face-to-face learning and activities fostering connections and providing engaging experiences for our students.
Our commitment to serve the community reached new heights across the Asia Pacific region, through civic partnerships that drive social innovation, reimagine smart and sustainable cities for the future, and empower the workforce of tomorrow.
We are proud of RMIT’s diverse community and committed to creating a safe, inclusive and respectful place to study and work.
International students
RMIT has students studying at offshore campuses, which we consider as international students, although it’s important to note they are not studying at our campuses in Australia – they are studying overseas and considered domestic cohorts in their local market.
All students studying at RMIT’s international campuses are noted in the University’s annual report as ‘fee paying offshore overseas students’ (sometimes noted as international offshore, or INTOFF).
International students studying at RMIT’s Australian campuses are noted as ‘fee paying onshore overseas students’ (sometimes noted as international onshore, or INTON).
Bundling offshore and onshore figures together to represent international students studying in Australia is an inaccurate representation of RMIT’s Australian operations.
Highlights
Diversity and Inclusion
RMIT’s culture emphasises wellbeing, recognition for contribution, and an expectation that our values are fundamental. In 2023 we received two SAGE Cygnet Awards, recognising the way RMIT is breaking down barriers in the recruitment of women and gender-diverse individuals, and eliminating barriers to participation and career fulfillment for parents and carers. We also extended our Disability Confident Recruiter accreditation, an important continuation of our commitment to disability inclusion.
Our blueprint to create a more inclusive and equitable RMIT for our students and staff – The IDEA (Inclusion, Diversity, Equity and Access) Framework – was launched, while a new People Strategy outlines how we’ll create rewarding career pathways, develop an effective leadership culture and improve our workforce models to meet our future needs, empower people to take ownership and make informed decisions.
Moving from Reconciliation to Responsible Practice
RMIT’s commitment to the participation and success of Aboriginal and Torres Strait Islander peoples is unwavering and embedded in the University’s Knowledge with Action strategy. In 2023, we transitioned from Reconciliation to Responsible Practice, encouraging us all, individually and as a collective, to amplify the practices that actively strengthen relationships between Indigenous and non-Indigenous peoples for the benefit of all Australians and the communities in which RMIT operates.
Sustainability
In 2023, we continued to strengthen our sustainability credentials, transitioning 100% of our onshore grid electricity to renewable sources from 1 January 2023, a crucial step in our journey to Carbon Neutral by 2025.
We also introduced the Sustainability and Equity Evaluation (SEE) Tool, a groundbreaking innovation designed to assess the sustainability impact of any RMIT policy, program, plan, or project through the lens of the UN Sustainable Development Goals.
Rankings
2023 saw continued strong performance in global university rankings with RMIT ranked =140th in the 2024 QS World University Rankings and appearing in the 251-300 band of the 2024 Times Higher Education World University Rankings.
We also ranked 400th globally in the Academic Ranking of World Universities and =7th globally in the Times Higher Education Impact Rankings, designed to showcase how institutions are working towards addressing the United Nations’ Sustainable Development Goals (SDGs). RMIT also ranked =62nd globally in the 2024 QS Sustainability Rankings which look at how universities are responding to the world’s environmental, social and governance challenges.
Research & Innovation
In 2023, the University’s research and innovation activities went from strength to strength with our research intensification and relevancy evidenced by positive rankings results, research impact outcomes and a large volume of quality research outputs. We successfully collaborated with our partners in government and industry to deliver numerous important initiatives that deliver benefit beyond academia, with a key highlight being the announcement that Victorian Government-backed investment company Breakthrough Victoria will match the University’s $7.5M investment in research translation to advance new partnerships and create companies, products and services from RMIT research.
Outlook
While the impact of the pandemic on the higher education sector has yet to run its full course, we are seeing positive signs of recovery with regard to student numbers.
External and sector challenges, through 2023 and ongoing, have materially impacted our revenue and expenditure. These include low unemployment levels affecting our domestic student enrolments (particularly post-graduate); changes in growth markets including price sensitivity; and inflationary pressures across society.
In 2024, we expect to again report a deficit for RMIT University (Australia) and for the RMIT Group, however we anticipate these will be smaller deficits than 2023.
We will continue to make strategic investments in critical areas – infrastructure, our systems and our people. It’s about making responsible, prudent choices about where we focus our resources to deliver on our strategic aspirations and ensure a high quality experience for our students and staff.
The impact of the pandemic on the higher education sector will continue in the medium term, however as we look towards 2025 and beyond, we believe we will be in a stronger position for growth.
Please take the time to reflect on the many achievements outlined in the Annual Report. Because, while our short-term financial position remains challenging and our operating environment constrained, we continue to generate tangible impact in the communities we serve, graduate exceptional global citizens and produce outstanding applied research.
