Adelaide University opens early retirement scheme as $90m student shortfall grows

Voluntary redundancies may follow, university warns staff

By LineZotpaper

Published15 October 2026

Read Time2 min

Sources2 outlets

Adelaide University will offer early retirement packages to eligible staff and has not ruled out voluntary redundancies, as it responds to a projected revenue shortfall of about $90 million caused by international student enrolments running 40 per cent below target.

Adelaide University has opened expressions of interest for a Voluntary Early Retirement Scheme (VERS) for employees aged over 55 with five or more years of continuous service, as it deals with a worsening revenue shortfall driven by a downturn in international students.

The university told staff on Thursday that the scheme was not a voluntary redundancy process, but said one "may be considered in future" if it aligned with "broader workforce planning and institutional financial considerations."

Some roles vacated through the retirement scheme may be filled again, the university said, but "not every position will be replaced."

"It is important to note that participation in the VERS is entirely voluntary," Joanne Fox, the university's head of people and culture, said in an all-staff email on Thursday afternoon. "No one is expected or required to express interest, apply or retire."

Ms Fox said the university had to "respond carefully to a changing operating environment," which included "sector-wide financial pressures arising from the international student recruitment outlook."

The university has previously said its international student enrolments are 40 per cent below target, creating a projected revenue shortfall of around $90 million. It has blamed federal government policy changes designed to reduce international student numbers, although competitor Flinders University has recorded a 15 per cent increase in international onshore enrolments this year.

In a pre-recorded video message to staff last week, Vice-Chancellor Professor Nicola Phillips said changes to migration policy had "created a challenging financial situation that we need to negotiate over the next few years."

"We're starting in an advantageous position," Professor Phillips said. "But please don't underestimate how carefully we're going to need to manage costs for the foreseeable future, so that we can continue investing in our people and what matters most for our university."

She said the university was not considering "any radical restructuring of our workforce or our university," but added: "That doesn't mean no change though, and I want to be clear about that."

Analysis

Why This Matters

Thousands of university staff face workforce change as the institution moves to cut costs through early retirement and attrition rather than compulsory job losses.
The roughly $90 million revenue gap shows how exposed the newly merged university is to international student fees, and how quickly federal migration policy can hit institutional budgets.
The contrast with Flinders University's 15 per cent enrolment growth raises questions about whether government policy or university-specific factors are driving the shortfall.

Background

Adelaide University is the newly merged institution created from two South Australian universities, and it is still consolidating its workforce and operations. Australian universities have become heavily reliant on international student fees in recent decades, and federal government changes to migration and student visa policy have been aimed at reducing overall international student numbers. The retirement scheme is a common cost-management tool in the sector, offering older staff a voluntary exit before any compulsory measures are considered.

Key Perspectives

[University leadership]: Argues the scheme is entirely voluntary, that costs will need careful management for several years, and that radical restructuring is not planned. [Staff and unions]: Will be watching whether the early retirement scheme shifts into voluntary redundancies and whether vacated roles are permanently cut rather than refilled. [Critics and sceptics]: Point to Flinders University's 15 per cent growth in international onshore enrolments as evidence that broader policy changes do not fully explain Adelaide University's shortfall, and that institutional factors may also be at play.

What to Watch

Whether the university moves from an early retirement scheme to a formal voluntary redundancy round in coming months.
International student enrolment numbers for the next intake, which will show whether the 40 per cent shortfall is improving or worsening.
Staff and union reactions, and any state or federal government response if cost pressures deepen.

Sources

Adelaide University to offer staff early retirements as financial woes grow — Latest business news
Adelaide University to offer staff early retirements as financial woes grow — Just In