Australian Universities Plan Cuts Amid Student Declines

Multiple institutions are reducing staffing and costs as international student revenue falls across the country.

Updated on Oct. 26, 2026 in Internships

Bold flat-color editorial illustration depicting a stylized university building facade, evoking the financial contraction currently impacting the Australian higher education sector. — Australian universities including Murdoch and Charles Sturt are initiating staff cuts and cost-saving measures as international student revenue hits a sharp downturn. AI Illustration. Upload story photo >

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Universities across Australia are implementing cost-saving measures, including potential staff cuts, as they face significant financial pressure from declining enrolments and stricter federal visa rules. Murdoch University and Charles Sturt University are among those initiating plans to reduce expenditure and staffing levels.

Why it matters

The sector is grappling with a sharp downturn in international education earnings triggered by federal government visa rule changes. These policy shifts, combined with lower domestic student numbers, are forcing institutions to restructure their financial operations.

Adelaide University projects a A$90 million shortfall in international revenue as enrolments fell from 20,800 to 16,700. Meanwhile, Murdoch University recorded a 22 per cent decline in first-semester enrolments between 2022 and 2026.

The players

Murdoch University

A public university based in Perth with an international presence in Dubai and Singapore.

Charles Sturt University

An Australian multi-campus public university that is currently planning to reduce its total staffing by 100 positions.

Adelaide University

A research-intensive institution currently managing a large projected revenue shortfall due to shifting international student trends.

The details

Murdoch University is implementing cost-saving measures following a period where its international student share reached 57 per cent in 2024. Simultaneously, Charles Sturt University plans to reduce its net staffing levels by 100 positions, while Adelaide University is seeking expressions of interest for voluntary early retirements.

2022 was the start of the enrollment comparison period at Murdoch University.
2024 saw international students account for 57 per cent of the Murdoch University population.
2026 marked the end of the enrollment decline period for Murdoch University.
October 2026 was when university staff were formally notified of the proposed cost-cutting measures.

Market Landscape

These university cutbacks follow the implementation of federal government international student visa rule changes. This tightening of entry requirements directly disrupts the revenue models of institutions that have historically relied on overseas tuition fees.

Students may see changes to campus services and academic programmes as universities manage their budget shortfalls. Staff members at affected institutions face increased uncertainty regarding job security and potential workforce reductions.

The takeaway

The higher education sector is currently undergoing a period of intense financial adjustment driven by regulatory changes. Institutions are prioritising structural savings to mitigate the impact of lower student numbers on their long-term viability.