A deficit of $7.2 million is projected this year.

UNE chief financial officer Kris Kauffmann wrote a report on the dire outlook for the 2018-2020 budget.

“We are still revising the university budget, but it is clear that we have to change several key assumptions about how we ensure our financial sustainability,” Mr Kauffmann said.

A government funding freeze of $2.2 million has hit universities across Australia.

Money previously paid to universities for students in bachelor courses has been capped at 2017 levels.

Even with an increased intake, universities will have to work out how to divide the money they get among HECS HELP or VET-funded positions.

The funding freeze is in place for the next two years.

It’s the end of the demand-driven system, Mr Kauffmann said.

“UNE is heavily reliant on Commonwealth funding, with some 96 per cent of our student load in non-research courses being Commonwealth Supported Places [fees covered on loan by the government],” he said.

“At the same time, the university has a relatively low proportion of international and domestic full fee paying students.

”We are thus significantly more exposed to these funding changes than the large city-based universities.”

Attracting more international students and keeping them is one solution.

Taking on domestic students that pay upfront, more short courses and developing teaching solutions for institutional partners were among Mr Kauffmann’s recommendations.

“Our ability to bring the budget back into surplus [by 2020] will depend significantly upon the success of these revenue growth programs,” he said.

“And, how successfully we improve our operational efficiency.”

The university wants to double it’s growth in international and domestic full-fee revenue.

It’s the only way to return to a small surplus by 2020.

A revised budget will be presented next month.