Australia Proposes 240,000 International Student Cap, Higher Visa Fees

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Australia’s Coalition has revealed a new policy ahead of the May 3 federal election, aiming to limit international student arrivals to 240,000 per year and introducing a AUD$5,000 visa fee for students targeting top universities. This move is part of Leader of the Opposition Peter Dutton’s plan to address the housing crisis by slashing international student commencements by 80,000.

Major Points of the Policy

  • International Student Cap: The proposed cap of 240,000 is 30,000 fewer than Labor’s proposal.
  • Visa Fee Increase: Students at the Group of Eight universities will face a AUD$5,000 visa fee, while others will pay AUD$2,500.
  • Provider Change Fee: A new charge of AUD$2,500 will be imposed on students who wish to change education providers.

The proposed visa fee hike has been met with criticism from sector leaders. Vicki Thomson, chief executive of the Go8, expressed concerns that the plan will reinforce negative messages about Australia’s international education market.

  • Go8 Concerns: Thomson stated that the policy makes no sense, especially when facing skills shortages in critical areas for economic competitiveness.
  • IEAA Criticism: Phil Honeywood, CEO of the International Education Association of Australia, criticized the Coalition’s plans, citing a lack of consultation with key stakeholders and describing the student visa charge increase as “outrageous.”

The policy may deter international students from choosing Australia as a study destination, with Honeywood suggesting that students may opt for more welcoming countries like the UK and New Zealand instead.

Universities Australia CEO Luke Sheehy warned that both major parties are harming the international education sector, which contributes significantly to Australia’s economy, injecting around $50 billion annually.

The policy announcement is part of the Coalition’s election campaign, with Dutton aiming to appeal to voters by addressing the housing crisis. However, critics argue that the data used to support the policy is questionable and unverified.

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