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Double trouble
Delayed SA ‘ mega uni ’ launch could cost $ 250m
By Erin Nixon
A delayed opening of South Australia ’ s new ‘ mega-uni ’ could cost up to $ 250m and cause significant damage to the state ’ s reputation .
Adelaide University , a collective of University of South Australia ( UniSA ) and University of Adelaide ( UA ), is scheduled to open in January 2026 ; however , a parliamentary committee investigating the new institution could delay proceedings .
According to UniSA vice-chancellor David Lloyd , the merger can only go ahead if the state parliament passes new laws by early next year , and delays will come at significant cost .
“ The minimum impact on the delay of legislation is six months , and the value of that six months is $ 250 million ,” Mr Lloyd said .
The National Teachers Education Union ( NTEU ) demanded the inquiry into the merger , stating insufficient evidence to support the state ’ s $ 300m investment .
The inquiry is conducting an independent investigation into the cost and risk of the merger ; SA premier Peter Malinauskas admitted to only reading the summary business case before giving his approval .
ATTRACTING MORE FUNDING UniSA staff received an email on August 15 announcing the new Adelaide University website , which includes documents detailing the ‘ potential university for the future ’.
The website hosts the highly anticipated business case and financial modelling for the merger , along with a response submission to the inquiry .
The business case for Adelaide University proposes that the merger of SA ’ s two largest universities would benefit the state ’ s research , industry and economic interests .
UniSA and UA have been limited by the current funding model , which favours universities with larger student numbers .
“ Under current funding arrangements in Australia , scale does matter ,” UA vice-chancellor Professor Peter Høj said . “ Operating at scale is one of the few levers available to institutions to attract the most talented students and staff , invest in infrastructure , and achieve research , student and community outcomes .”
The new Adelaide University would be Australia ’ s fifth largest university , projected to attain 44,000 equivalent full-time student load ( EFTSL ) and nearly 7,000 full-time equivalent ( FTE ) staff on day one . Financial modelling for the business cases anticipates the new institution to reach over $ 2bn in operating revenue by 2034 .
PERFORMING ON THE GLOBAL STAGE
Quacquarelli Symonds ( QS ) released its 20th edition of their flagship QS World Rankings on June 27th placing UA and UniSA 89th and 325th respectively .
QS World University Rankings delivers annual comparative university rankings featuring 1,500 institutions across 104 locations .
In combining SA ’ s two largest universities , Adelaide University is expected to attain a higher global ranking than the two universities have achieved individually .
The business case for Adelaide University anticipates that a higher global ranking would draw in larger numbers of international students , with the average international student contributing $ 60,000 to the SA economy each year .
The business case projects that by 2034 , Adelaide University will educate 6,000 more international students than the two universities combined .
RESEARCH AND COURSE DESIGN Financial modelling shows that combining the two universities should increase research revenue by $ 77m in 2034 , and that every dollar invested in research will create $ 3.50 in economic benefit for SA . By 2034 , Adelaide University would contribute $ 500m more to the SA economy per year compared to that which the two universities contributed in 2022 .
Only a quarter of staff support the merger and have been frustrated by the lack of formal avenues for consultation
Course design for Adelaide University would focus on state and national research priorities , including creative and cultural , defence and national security , food , agriculture and wine , global green transition , healthcare systems , and personalised health .
IMPACT ON STUDENTS Students have raised concerns about the impact of the merger on course availability , and also questioned how the two unique universities could form one collective culture .
Students also fear they will become lost in a large institution that expects to attain 55,000 EFTSL and produce a minimum of 2,800 additional SA graduates per year by 2034 .
Adelaide University proposes to provide more access for equity cohorts , tendering a perpetual $ 100m equity fund to support up to 800 more equity students per year by 2034 .
IMPACT ON STAFF Academics at both universities have raised concerns about the impact on jobs regardless of the promised ‘ no forced redundancies as a result of the merger ,’ which would extend 18 months into the life of the new university .
Only a quarter of staff support the merger and have been frustrated by the lack of formal avenues for consultation and feedback on the merger .
Adelaide University ’ s business case estimates the new university will employ at least 1,200 more staff than the two institutions combined .
However , critics state that the modelling is based on another university merger that resulted in 400 job losses .
The historic deal with the SA government to merge the state ’ s two largest universities comes with significant financial and reputational risk ; however , ‘ not to do this would be a mistake ,’ Mr Lloyd said . ■
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