La Trobe confirmed the new La Trobe Student Association would receive $2.025 million from the Student Services and Amenities Fee, which was down from 2020 funding levels.

Deputy Vice-Chancellor (Students) Jessica Vanderlelie said the smaller funding allocation was mainly due to the expected drop in student enrolments.

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"Overall, the university collects the SSAF fee from students," she said. "How much money we can raise will depend on how many students we have enrolled and how many subjects they take.

"We expect our student numbers will be about 20 per cent smaller in 2021 so that's why we're forecasting a 20 per cent reduction in the overall pod of money."

Professor Vanderlelie said the LTSA and the university also came to the agreement that La Trobe would provide more of the student services and therefore would require more of the SSAF funding.

She said the LTSA money would still go towards providing essential services like clubs, events, and financial counselling for students at all of La Trobe's campuses.

"They are contracted to provide those services to students," Professor Vanderlelie said.

"We also have a stipulation that no more than $100,000 can go towards what the student representatives get paid to offset the cost of being involved in the association.

"This will be the first time there is a cap on that because we want to make sure as much as possible goes to service delivery."

Read more: La Trobe University's Bendigo Student Association reflects on the past 32 years ahead of merger

The separate La Trobe Student Union - which would operate on the university's Bundoora and City campuses - would receive $275,000 to run student representation on those campuses.

Professor Vanderlelie said some student association staff could be displaced as a result of the amalgamation, but their applications would prioritised when the LTSA starts recruitment.

She said the changes to funding allocations would actually increase the services available to students.

"Our priority is to use the students' money in the most efficient and effective way we can," Professor Vanderlelie said.

"We understand any changes to funding levels can be disruptive to the student associations. We want to minimise that disruption and we'll work in strong partnership with the associations.

"But our priority is to make the best use of student money."

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