Annual Report 2005
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Effects of Economic and Other Factors
Economic and other related factors were generally favourable in 2005, supporting the University in exceeding its financial objectives for the year. The key areas affected by these factors were the University’s investment income, Commonwealth government funding changes and student fees.
Continued good performance in financial markets generated investment returns in excess of expectations, delivering a strong overall financial result for the University.
Commonwealth government funding reforms resulted in additional direct funding flowing from workplace reforms and governance requirements, an increase in funded student load levels and also increases in student contributions compared to 2004. However, the government decision on indexation was unfavourable and will not be reviewed until 2008 during which time the cost adjustment factor will be less than the CPI.
The University’s full fee-paying student fees were overall generally in line with budget expectations for 2005. The growth in international onshore student enrolments has flattened off, while offshore enrolments have continued to grow, albeit at a slower rate. The stronger Australian dollar continues to dampen the attractiveness of Australian university education.