UOW chief finance officer Damien Israel said it was true that the Federal Government’s funding freeze, which is reported to deny Australian universities up to 15 per cent of their base funding, presents challenges.

But he was quick to point out that the challenges “were within the range of what the university has anticipated and prepared for”.

“The university believes the $60 million reduction over the next four years referred to in recent media reports is based on more optimistic assumptions of student enrolments for the outlying years than UOW has applied in its medium and long-term financial planning,” Mr Israel said.

“These higher assumptions would tend to overstate the impact on UOW.”

Read more: Higher-education funding cuts present challenges for UOW

Universities serving communities in regional Australia and the outer suburbs of capital cities would be hit hardest by the $2.3 billion higher-education cut.

Citing government figures obtained under Freedom of Information Laws, the ABC reported that UOW stood to lose 5.1 per cent of its base funding or $60m.

In NSW, only Macquarie University (7.1 per cent decline) and Southern Cross University (5.7 per cent) fared worse. 

But Mr Israel said the funding freeze announced in the federal government’s Mid-Year Economic and Fiscal Outlook (MYEFO) in December 2017 had been anticipated by the university well before its announcement and factored into financial planning for 2018 and beyond.

He said UOW was implementing a range of measures to reduce operating costs.

“These include reducing energy costs through solar panel installations and retrofitting energy efficient lighting across all buildings and campuses,” Mr Israel said.

“Other initiatives include technology projects that will improve administrative efficiency while enhancing the personalised service provided to students.”

But Universities Australia stated regional universities on average faced a cut to their base funding of 7 per cent by 2021 if the freeze continues.

Catriona Jackson, the chief executive designate of the peak body said the cuts were short-sighted.

Read more: Student ‘squeeze’ could have catastrophic consequences: UOW

“If you cut funding to universities, they won’t be able to respond to skills shortages, local population growth and a diversifying economy,” she said. 

“These government cuts will force some universities to offer fewer places in their local communities. Universities and students right across the country are facing the harsh reality of a cut that does not end.”

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Federal Education Minister Simon Birmingham said “base funding for universities will still grow by nearly $1 billion over the next four years, and that's without taking into account growth in research and other programs that universities receive funding for.”