The federal government has proposed a plan to limit the number of international student enrolments in Australian universities.
By capping the numbers, the Australian Government aims to align overseas student enrolments with the country’s job needs.
Government statements suggest that if the legislation passes, the restriction will apply to new international students from January 1, 2025.
Universities will be forced to limit their intake of overseas students, which will be detrimental to teaching staff as well as the economy.
Universities Australia Chief Executive Officer, Luke Sheehy, spoke recently at a Senate inquiry.
Sheehy reported that “visa grants in higher education are down 23 per cent in the past year”, which corresponds to “59,410 university students”.
The impact of the loss of these international students “would represent a $4.3 billion hit to the economy and could cost the university sector alone over 14,000 jobs”.
Sheehy continued, stating that the “government’s intention to maintain the integrity and sustainability of the international education sector” is supported by Universities Australia.
However, threatening to cut 14,000 jobs is damaging and unfair for universities.
Dr Michelle Aung Thin from RMIT noted that international students “pay very high fees”, which is “a huge income for Australia but also for universities”.
“If you don’t have that income, then how do you pay staff?” said Aung Thin.
“Jobs will be on the line if we have a cap.”
Dr Thin suggests that the plan to limit the number of overseas students only buries the poor funding issue that universities have been facing.
Capping students “doesn’t allow us to address the real problem, which is that universities aren’t properly funded”.
She expressed that universities like RMIT have not been “well-funded” by the Commonwealth Government.
Poor funding can mean that it becomes difficult for teachers to research “the latest and best information” as it can be “super expensive”.
Research executed by academics forms a large part of the reason “Australia is a very developed economy”.
In Aung Thin’s opinion, if Australia wants to maintain its wealthy economy, it is crucial that universities receive proper support. But, if a large source of their funding is capped, it creates a continuous struggle.
In the past, “fees from international students were definitely filling the gap”. The government’s plan to restrict such students from Australian universities is “a simplistic solution” and a “little bit short-sighted”, according to Dr Thin.
An article written by the Australian Financial Review (AFR) reported that universities “will be limited to enrolling a maximum of 40 per cent” of international students, causing anxiety for tertiary education institutions.
However, days after the AFR published their article, Education Minister, Jason Clare, denied the claim of a 40 per cent cap.
Clare stated that Labor is “not intending” to restrict international students by such a substantial number and are still finalising their decision.
Although the number has not yet been announced by the Albanese government, the proposed plan is looming over Australian universities.
The Australian Government released a Draft for Consultation in May, which includes the advantages and limitations of having international students reach our shores.
The draft reports that international “student enrolments have not always been aligned with our national skills interests”. This caused the government to hesitate in their decision to allow overseas students to study in Australia.
For example, in 2023, “35 per cent of tertiary level international students studied business and management” and “only 8.7 per cent studied in areas of health and education”.
A possible issue this report highlights is that business courses are quite popular in Australia, whereas the health and education sector are facing shortages.
Thus, the government’s ideal situation is to drive international students into choosing courses where gaps need to be filled.
The government draft states that if overseas students study “the skills Australia needs”, it can “make a strong contribution to the economy”.
First year RMIT international student, Ivy Truong, has been living in Australia for over a year on a visa.
Originally from Vietnam, Truong believes that “international students should have the freedom to choose whatever they want to study, as long as they are genuine students”.
While studying in Melbourne, Truong states that overseas students “contribute to cultural diversity, enriching Australian society with various cultural aspects”.
As well as the diversity that international pupils bring to classrooms, Ivy Truong reiterated the “economic benefits” that she and other international peers foster.
“We often pay double or more in tuition fees,” said Truong.
She continued, noting that “many international students choose to buy a house rather than rent, which is more costly for them as international buyers”.
Overseas students do act as a key financial source for Australia’s economy. However, reports by the government suggest that the intake of foreign students should be examined thoroughly.
What is clear though, is this dilemma will continue to make the lives of students and the business of tertiary institutions, more uncertain.
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