The ANAO Draft Report Sparks Controversy at ANU

The Australian National Audit Office (ANAO), responsible for auditing public sector entities including universities, has released a draft report that casts significant doubt on the Australian National University's (ANU) aggressive cost-cutting initiative known as Renew ANU. This program, launched in late 2024, targeted a staggering $250 million in savings—equivalent to 16.5 percent of the university's 2024 expenditure—within just over a year. The draft, still unreleased publicly as of late March 2026, questions whether there was clear evidence that such drastic measures were necessary or even feasible at the time of approval.

The ANU council, chaired by former Foreign Minister Julie Bishop, greenlit the plan in December 2024 despite internal warnings and without a thorough risk assessment or exploration of alternatives. This has fueled accusations of hasty decision-making amid claims of a looming financial catastrophe that critics argue was overstated.

Launch and Goals of the Renew ANU Program

Renew ANU emerged from concerns over long-term financial sustainability at Australia's premier research university in Canberra. Then-Vice-Chancellor Professor Genevieve Bell announced the initiative in October 2024, framing it as essential to create a "smaller but stronger" institution. The plan aimed for permanent recurring operating cost reductions by January 1, 2026, including $100 million from salaries through voluntary separations, attrition, and vacancy management, plus non-salary savings from consultants, travel, software, and operational efficiencies.

Phased implementation rolled out across portfolios like the College of Arts and Social Sciences (CASS), College of Science and Medicine (CoSM), and Research and Innovation. Official FAQs emphasize no new organizational changes in 2025 and a shift away from involuntary redundancies after achieving milestones, with savings tracked via an Expenditure Taskforce.

Financial Realities: Surplus Figures Challenge Crisis Narrative

At the heart of the debate lies ANU's financial health. The university's 2024 audited annual report revealed an $89.9 million surplus, with net assets rising to $3.8 billion and retained surpluses at $2.3 billion—a $92 million increase from 2023. Over two years, revenue exceeded expenses by nearly $250 million. Yet, leadership highlighted an unaudited "underlying operating deficit" of $142.5 million by excluding $232 million in restricted revenues like investments ($171 million) and philanthropy ($16.6 million).

The Australia Institute's analysis, titled "Cooking the Books at the ANU," labels this exclusion misleading, as the ANAO auditor certified the full surplus as a true and fair view. Long-term pressures—rising expenses outpacing revenue due to student caps, inflation, and post-COVID effects—were acknowledged, but the draft report notes no immediate crisis justified the scale of cuts. For full financial breakdown, see the Australia Institute report.

• Audited 2024 surplus: $89.9 million
• Net assets growth: $163 million (2023-2024)
• Excluded revenue to create 'deficit': $232.4 million
• Projected balanced budget: End of 2026

Job Losses and the Toll on University Staff

The human impact has been profound. The National Tertiary Education Union (NTEU) estimated up to 650 jobs lost, though ANU focused on voluntary schemes offering three weeks' pay per year of service. By mid-2025, rounds targeted 59 roles in science, arts, and research portfolios, with further proposals in academic areas saving $5 million. Staff reported morale at 'all-time lows,' with work overloads, health concerns prompting stop-work actions in humanities, and accusations of 'personal and profoundly damaging' changes.

Voluntary Separation Schemes (VSS) prioritized redeployment, but critics highlight rushed consultations under Enterprise Agreement Clause 70. No rehire within 24 months post-VSS, and while forced redundancies paused in August 2025 after 60% savings milestone, existing plans proceeded.

Photo by Eriksson Luo on Unsplash

Course Reductions Disrupt Student Learning

Students faced chaos from course suspensions and near-closures. The School of Music was slated for abolition—prompting public backlash and reversal—while humanities and other areas saw offerings slashed, forcing students into unrelated subjects. Connor Moloney, an affected student, noted: "We had to take courses that we don't necessarily think are actually beneficial." Broader Renew measures eliminated duplication but eroded program diversity, impacting research and teaching quality.

ANU's FAQs stress protecting core programs, but union letters decried 'radical and damaging cuts' without credible justification, especially post-salary targets met.

Leadership Shake-Up and Governance Questions

Professor Bell resigned in September 2025 after less than two years, citing failure to build a 'solid financial, cultural, and operational foundation.' Chancellor Bishop faces separate bullying inquiries by Dr. Vivienne Thom. The Tertiary Education Quality and Standards Agency (TEQSA) launched probes into governance since mid-2025, with Lynelle Briggs appointed. Former council member Dr. Liz Allen alleged exclusion from discussions and exaggerated crisis claims. For detailed ABC coverage, read this report.

Stakeholder Views: From Unions to Economists

The NTEU and staff open letters called for halting cuts, citing achieved salary savings ($100 million target met). Economist Richard Denniss accused 'cooking the books' with fake deficits. ANU defends realizing savings, with Renew nearing completion and no comment on the draft. Unions demand independent audits; experts like Denniss urge transparency on restricted funds. Official ANU FAQs outline consultations and VSS processes.

Implications for Australia's Higher Education Sector

ANU's saga mirrors sector-wide woes: $2 billion on consultants amid cuts, international student caps, and funding shortfalls. Go8 peers benchmark efficiencies, but critics warn of brain drain and ranking drops. The ANAO final report, expected soon, could prompt governance reforms. Balanced views highlight need for revenue diversification, policy advocacy, and ethical accounting.

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Future Outlook and Constructive Solutions

ANU eyes a new strategy post-August 2026, focusing revenue growth via postgrad initiatives and efficiencies without asset sales. Lessons: Robust risk modeling, inclusive consultations, transparent finances. For careers, explore stable roles via AcademicJobs higher ed jobs. Actionable insights include benchmarking peers, investing in staff wellbeing, and federal lobbying for uncapped students.

• Prioritize non-salary savings (consultants, travel)
• Enhance consultations for buy-in
• Audit 'underlying' metrics publicly
• Diversify revenue beyond internationals

This episode underscores the need for evidence-based decisions in university governance, ensuring cuts serve long-term missions without unnecessary harm.