Australia’s cap on International Students may be backfiring

Australian universities have expressed concerns about potential mass job losses if the government moves too swiftly to impose caps on international student numbers. One industry body has labeled the proposed policy as an unprecedented instance of “ministerial overreach.”

The Australian government is currently consulting on a plan to limit the number of international students domestic universities can admit. This policy aims to address community worries over high post-Covid migration numbers, which are exacerbating a national housing shortage, as well as questions about the quality of service provided by Australian tertiary institutions.

During a heated Senate hearing on the new laws, Luke Sheehy, Chief Executive Officer of Universities Australia, warned that the policy could result in 14,000 job losses within the sector and potentially cost the economy up to A$4.3 billion (US$2.8 billion).

“The sector is our second-largest export after mining, contributing almost A$50 billion to the economy and supporting around 250,000 jobs,” Sheehy stated before the committee in Canberra. “No other major export industry is treated the way international education is currently.”

The government first announced plans to cap international student numbers in the 2024 federal budget. This followed months of efforts by then-Home Affairs Minister Clare O’Neil to address fraud related to short-term and student visas.

In July, Australia revealed it would be increasing visa application fees for international students by 125%, raising the total cost to A$1,600 per application.

The final details of the policy are still pending, with a parliamentary inquiry into the proposed legislation expected to report by August 15. The caps are anticipated to be implemented on January 1, 2025.

Andrew Norton, a higher education expert at the Australian National University, suggested in a recent report that the government should assess the effects of its already-implemented policy reforms before further restricting international students.

“On its current trajectory, the government is likely to inflict more damage than necessary to achieve its policy goals. Its mistreatment of prospective students could harm Australia’s reputation,” Norton remarked in a paper published by ANU’s Migration Hub.