Exploring how two universities aim to become one
A lot of excitement has surrounded South Australia’s major universities in the last couple of years. This is due to the merger that you have, no doubt, heard about. The merger proposes that the University of Adelaide and the University of South Australia join to create ‘Adelaide University’, which will open in January of 2026.
Education is an integral part of the state’s economy, with a specific focus on international students. 2024 proved to have a record high of international students in South Australia, with 39,217 students enrolled in the January period. This is a 47% increase in students from 2023, in South Australia alone. In the 2022-2023 financial year, education as an international export generated $36.4 billion Australia-wide – acting as the fourth highest-value export for the nation. In South Australia, international education acts as the largest service export.
Both domestic and international students regard Australia’s higher education opportunities as worth pursuing. So, how will the merger affect this?
The merger was considered on the basis that economic and social interests would be better facilitated by the union of the two universities. A committee has been created to inquire and report about the establishment of Adelaide University. As both universities have held competitive global rankings thus far, there are concerns as to whether a joint university could continue to perform at the same level.
The merger will not proceed without some issues; in fact, the committee identified 116 risks. One major instance is the increased pressure on university staff having to continue their routines under an institutional change. Less university organisations can lead to a less competitive environment for staff, but also decrease potential job opportunities. Logistical issues include attracting students and maintaining financial stability. Culturally, the committee has raised concerns that it will take some time for the institution to ground itself in a new identity. However, both the University of Adelaide and the University of South Australia aim to have Adelaide University consistently recognised in the top 100 universities worldwide by 2034.
To underline the benefits, let’s do some number-crunching. Together, both universities have a total revenue of around $1.7 billion and 6,900 staff. In 2021, the combined surplus was $251.3 million, of which the University of Adelaide contributed 79%. In 2022, funding dropped significantly and combined revenue was just $4.3 million ($12 million surplus for UofA and $7.7 million deficit for UniSA). The difference in surplus is due to a decrease in incomes and an increase in expenses. Additionally, the universities received on-off funding items from the Commonwealth government that were split between the institutions.
Immediately, a benefit can be uncovered by the merger – any funding, grants, or additional monetary donations need not be split between two competing universities. Adelaide University, as a singular institution, can distribute funds as required.
The State government has already committed to the creation of two ongoing funds for the new institution. $200 million has been allocation to support further research and $100 million would provide support for lower socio-economic level students. These amounts act as investments into the university. The government has also pledged $30 million over 3 years to attract international students to Adelaide University as it builds a global reputation. However, it is unknown how international student caps will affect these considerations.
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