Statement: 2022 Annual Report

2022 financial summary

The effect of international border closures continued to have a residual impact on revenue in Australia, with international student numbers still well below pre-pandemic levels. The University’s financial investments were also impacted negatively by economic factors in 2022.

The consolidated 2022 net operating result for RMIT University in Australia and its controlled entities (RMIT Vietnam, RMIT Online, RMIT Training and RMIT Europe) was a deficit of $27.7 million.

RMIT University in Australia incurred a pre-tax operating deficit of $73.0 million.  This compares to a $70.4 million operating surplus in 2021 which included a one-off building sale of $58.6 million.

Overall, revenue decreased by 8 per cent to $1,265.1 million, down from $1,378.4 million in 2021.

A reduction in international fee-paying student revenue across all levels of study contributed to a 10 per cent decrease in course fees and charges to $392.2 million, down from $435.1 in 2021.

Australian Government financial assistance also decreased by 6 per cent to $641.6 million, down from $679.8 million in 2021, due to the reducing Commonwealth Grant Scheme (CGS) cap under the Job Ready Graduate Program and a 6 per cent decline in domestic equivalent full-time student load (EFTSL).

The University also incurred unrealised losses on the value of its philanthropic investment portfolio due to adverse market conditions. This resulted in an overall net investment loss of $7.4 million, compared to a gain of $15.1 million in 2021. RMIT Vietnam reported a surplus of $59 million, up from $55 million in 2021. Revenue grew 24 per cent to $186.7 million, reflecting an increase in student headcount. Operating expenses also grew 35 per cent to $119.2 million, driven by growth in academic employee and other student related costs to support the increased student load and campus requirements.

RMIT community

In 2022, RMIT had close to 10,000 staff globally and over 90,000 students studying at campuses in Australia and internationally.

While student numbers remained well below pre-pandemic levels, 2022 was notable for the sight of our campuses coming back to life with face-to-face learning and activities, and the welcome return of many international students.

The care and support offered to our staff and students during the pandemic continued in 2022 as we implemented new requirements to ensure a COVID-safe campus.

We welcomed the Victorian State Government’s International Education Resilience Fund which allowed us to offer a range of initiatives for international students to address the impacts of COVID-19, specifically in the areas of employability, social connection and wellbeing.

We are extremely proud of RMIT’s diverse community and recognise the important role our campuses play in supporting a vibrant culture.

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 continues to make significant progress in recognising and growing the diversity of our community.

Launched in 2022, our new Gender Equity Action Plan will progress gender equity and ensure the University maintains its five-year status as a recognised employer of choice by the Workplace Gender Equality Agency (WGEA).

The WGEA recognition acknowledges RMIT’s effort to develop a gender-balanced workforce, support pay equity, provide supports for parents and carers, mainstream flexible ways of working and prevent gender-based harassment.

RMIT also achieved Platinum Employer status in 2022 from Australia’s peak body for employer LGBTIQA+ inclusion. The award recognised our leadership in forming Australia’s first professional network for researchers who identify as LGBTIQA+ or who research in the fields of gender and sexuality.

Ensuring RMIT is physically, technologically and culturally accessible for people with a disability remained a key area of focus in 2022 and we were proud to be re-accredited as a Disability Confident Recruiter by the Australian Network of Disability for the second year in a row.

Reconciliation

2022 was notable for the commencement of RMIT’s new Pro Vice-Chancellor indigenous Education, Research and Engagement, Professor Gary Thomas. A passionate champion for Indigenous education, Professor Thomas will lead the University in its transition from Reconciliation to Responsible Practice in 2023 and the years ahead.

In 2022 RMIT exceeded its targets in both Indigenous recruitment and Indigenous workforce retention.

Sustainability

In 2022 RMIT brought forward its carbon neutral target by five years to 2025 after achieving the largest on-site emissions reduction of any tertiary institution in Australia.  The release of our new Carbon Management Plan reinstates our commitments to renewable energy and electrification.

In the face of increasing energy prices in 2022, we expanded our existing renewable power purchase arrangements and were able to switch off on-site co-generation and tri-generation plants at the end of 2022, with the result that our Australian operations are now supplied by 100 per cent renewable energy.

Rankings

2022 saw continued strong performance in global university rankings with RMIT ranked 190th globally (and 11th in Australia) in QS World University Rankings and 322nd globally (and 21st in Australia) in the Academic Ranking of World University (ARWU).  

We also ranked 310th globally (and =23rd in Australia) in the Times Higher Education World University Rankings and 22nd globally (4th in Australia) in the Times Higher Education Impact Rankings, designed to showcase how institutions are working towards addressing the United Nations’ Sustainable Development Goals (SDGs). In a similar vein, RMIT ranked 53rd globally (and 5th in Australia) in the QS Sustainability Rankings which look at how universities are tackling the world’s environmental, social and governance challenges.

Research and partnerships

2022 was an excellent year for RMIT research and innovation, with increased research income, more top journal publications, more significant partnerships and improvements across global university rankings schemes.

Revenue from contracted research services increased by 42 per cent to a total of $103.6 million, up from $73.1 million in 2021. The increase was largely due to the research component of the Victoria Higher Education State Investment Fund (VHESIF) which was used to deliver 20 projects in 2022, all focused on Melbourne’s COVID recovery – social inclusion, job creation, workforce transformation and the redevelopment of Melbourne’s CBD North precinct.

A key highlight of the year was the announcement that RMIT will lead a consortium of universities and industry partners in the new $72 million Australian Research Council (ARC) Centre of Excellence in Optical Microcombs for Breakthrough Science (COMBS).  

We also launched Australia’s first university cloud supercomputing facility, RACE, to drive digital innovation and unveiled a new $2.3 million modular flame test chamber, which will be used to ensure the development of the safest protective clothing for Australia’s firefighters and defence personnel.

Outlook

The financial impact of the pandemic is still to run its full course and it will take several years for RMIT to rebuild revenues, particularly our international student revenues.

In Australia, we continue to be impacted by broader economic factors, including low unemployment levels. While this is positive for our community, it does affect our domestic student enrolments, particularly our post-graduate cohorts.              

We expect to report a deficit again in 2023. While this is not sustainable for the long-term, it has been anticipated and both our revenue and expenditure plans have accounted for this challenge.

We will remain financially prudent as we continue to rebuild our student numbers and revenues and expect budgets will remain constrained. These are necessary steps to return to a path of financial sustainability