The University of Wollongong has allocated $10 million to resolving staff underpayments, with funds to flow to affected workers this year.
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The full amount is included in the university's annual report, submitted to the NSW parliament this week.
In 2023, the university self-reported the underpayments to the Fair Work Ombudsman, with the initial cost estimated at $8 million in unpaid wages.
The $10m line item is one of three "abnormal" items, however acting branch secretary for the union representing academic staff Andrew Whelan said that it was a "strange" way to describe the underpayments.
"Systematic underpayment to the value of $10.4 million," was how he described it.
The report notes that casual staff employed by the university since 2016 should receive their back-pay this year.
"A remediation program was established and it is expected that remediation payments to affected employees will be made in mid 2024."
Staff wellbeing was one of the only key performance indicators where UOW's performance slipped, falling from 51 per cent to 48 per cent.
Graduate outcomes, student satisfaction and rankings improved, acting vice-chancellor Professor David Currow highlighted.
"Our commitment to excellence is evident in our teaching and learning, improved global rankings results, and strong indicators of student satisfaction and graduate outcomes," he said.
Overall, the university reported a loss of $95.1 million for the 2023 year, which it described in a statement as a "challenging year" as the lingering effects of the pandemic combined with high inflation, increasing interest rates and uncertain international conditions.
More broadly for the sector, 2023 was an annus horribilis, with the University of Sydney the only NSW university to report a surplus.
In addition to the $9.615 million allocated to return to staff, the UOW's results were impacted by a $44.4 write down in the value of the university's Hong Kong campus, as well as the reversal of $24.8 million in franking credits, claimed when universities sold the jointly owned IDP Education venture in 2021.
Following the transaction, the Australian Tax Office has determined that universities are not eligible to claim franking credits, since they do not pay income tax, however this decision is subject to a challenge from UOW and other universities.
Underlying the result is the slow return of international students to the university after the pandemic.
UOW earned more in student tuition in 2023 than in 2022, however the total figure was still well below pre-COVID figures.
This delayed recovery may be further impacted by the federal government's clamp down on international student visas in late 2023 and early 2024, with prospective students having their visas delayed or offers rescinded.
Mr Whelan said the "bizarre" funding model that had propped up Australian universities on the back of international student fees prior to the pandemic was being shown to be "dysfunctional".
The federal government plans to reduce international student numbers by 40 per cent of pre-pandemic numbers across Australia.
