The University Feasibility Study 2025 explored three potential merger options to support structural reform of WA's public university sector.
All three merger cases modelled in the Rapid Cost-Benefit Analysis (Rapid CBA) delivered positive net benefits under the scenarios assessed. The Curtin-Murdoch-UWA merger delivers the largest potential total and net benefits but was also identified as the most complex option to implement.
The Rapid CBA does not select or recommend a preferred option. Instead, it states that a preferred option would be chosen later and then subject to a detailed business case.
Based on conservative assumptions, the Rapid CBA reports that merger costs inclusive of integration, transformation and post-merger sector support range from $175 million to $522 million in net present value (NPV) terms depending on the merger configuration.
The Rapid CBA suggests that under conditions where the right enablers are achieved and key risks navigated, the benefits of the three proposed merger cases would exceed the costs with potential benefit to cost ratios of between 2.8 and 13.6.
A merger that established the right conditions for transformation would result in benefits that far exceed the costs of the merger, with net benefits of up to $7.6 billion over 20 years.
The Rapid CBA models three benefit categories in dollar terms and includes in the benefit–cost analysis and scenario modelling. They are limited to benefits that the report considers quantifiable. While the merger involves significant upfront and transition costs borne by universities and government, the majority of quantified benefits are realised by students, industry and the broader state economy.
Table 1 summarises the quantified economic benefits identified in the Rapid CBA, expressed as net present value (NPV) over a 20‑year period ranging from low‑ to high‑sensitivity scenarios.
Table 1 Quantified benefits of the Curtin-Murdoch-UWA merger under scenario analysis
| Benefit Category | Potential benefits range (NPV, 20 years) | Primary beneficiaries |
|---|---|---|
| Education (public & private returns) | $1,142 - $3,931 million | Graduates, employers, WA economy via private returns (higher lifetime earnings to graduates) and public returns (productivity spillovers to the wider economy) |
| Research (R&D economic returns) | $1,476 - $$3,787 million | Industry, research partners, WA economy via productivity spillover, economic growth effect and commercialisation impacts |
| International education (exports) | $1,476 - $$3,787 million | University, WA businesses, WA economy via tuition surpluses, student expenditure and export income |
The Rapid CBA also explicitly acknowledges a broader set of unquantifiable benefits that are real and potentially significant, but which are not assigned dollar values in the Rapid CBA due to methodological limits (e.g. better student experiences).
The Rapid CBA identifies a potential positive reinforcement loop between the scale of a university, its ability to gain recognition (i.e. rankings) and its ability to attract students, academics and researchers – in turn, supporting more recognition. The Rapid CBA also suggests that larger, more concentrated research capabilities would improve WA’s ability to compete for Commonwealth research grants and funding pools. It also found that merging institutions allows for curriculum improvement, targeted investments in courses, and the use of top academic expertise.
The Rapid CBA advises that the next step requires completion of a more detailed CBA and business case of the preferred option only. This will need to include greater granularity of the option including the approach to integration and transformation, as well as funding considerations.
The Rapid CBA also presented international examples of university mergers:
- The University of Manchester, formed in 2004 by combining two universities, increased competitiveness and improved rankings.
- Tampere University in Finland, established in 2019, saw positive outcomes in teaching, research quality, reputation, and industry collaboration.
- The University of Toronto’s merger resulted in a three-campus university which is ranked #29 in QS World University Rankings (2026).
Following multiple reviews of WA's public university sector, the WA Government is undertaking a business case to explore potential university mergers. Find out more about the WA University Reform business case.
