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Australia's top universities have expressed grave concerns about the Labor government's proposed cap on the number of international students. The Group of Eight (Go8), representing eight research-intensive universities with over 400,000 students, warned that such measures could severely damage Australia's higher education sector and broader economy.

Potential Consequences

In a detailed submission to the Draft International Education and Skills Strategic Framework, the Go8 emphasized that capping international student numbers could have several unintended consequences. They noted that the proposed framework could undermine a AU$48 billion export industry, which is not only Australia's largest service export but also a major contributor to the country's economic growth.

Economic and Social Impact

The Go8 highlighted that international students significantly bolster Australia's economy, contributing to research funding, job creation, and the tourism sector. Vicki Thomson, Go8's Chief Executive, pointed out that international students are crucial for the financial sustainability of universities and the country's overall economic health. She criticized the notion that international students are to blame for housing shortages and other economic issues, calling for more informed and rational discussions on the topic.

Quality and Integrity Concerns

The government’s legislative package, including the Education Services for Overseas Students Amendment (Quality and Integrity) Bill, aims to impose enrolment caps and ensure that international education delivers maximum benefits to Australia while maintaining public trust. The bill proposes that limits on enrolments could be set at both the provider and course levels, with the Minister for Education taking into account the relevance of courses to Australia’s skills needs.

Risk to Australia's Global Standing

Thomson warned that the cap could diminish Australia’s competitiveness in the global education market. She noted that all Go8 universities rank among the world's top 100, with six in the top 50, and highlighted the risk of losing international talent to other countries if Australia becomes less attractive to foreign students.

Recommendations for Policy

The Go8 urged the government to consider the broader implications of the proposed cap and to adopt a more nuanced policy approach. They recommended focusing on maintaining the quality and integrity of education rather than imposing restrictive caps that could jeopardize the sector’s viability.

Future Actions

The government plans to implement the enrolment limits starting January 2025. Additionally, higher education providers that do not deliver courses to international students for 12 months may have their registration canceled. These measures are intended to prevent low-quality education providers from exploiting the system and ensure that courses offered align with Australia's skills needs.

In summary, the Go8 has called for careful consideration of the proposed student cap, emphasizing the critical role of international students in Australia’s economy and the potential adverse effects of the current policy direction.