Australia’s 2025-26 federal budget has been met with criticism from sector leaders, who claim it missed the opportunity to invest in the country’s international education sector. The budget forecasts a decline in Net Overseas Migration (NOM) by 75,000 in 2025-26 and a further 35,000 in 2026-27, which is expected to impact the international education sector.
The sector is already grappling with a de facto cap on international student enrollments, and the budget’s lack of investment is seen as a missed opportunity to address this issue. Instead, the budget outlines plans to increase visa application charges, which are expected to deliver receipts of $4.2 billion in 2025-26 and $4.4 billion in 2026-27. This includes a 125% increase in the fee for international student visas, from AUS$710 to AUS$1,600.
Luke Sheehy, chief executive officer at Universities Australia, acknowledged the challenges in delivering the budget but expressed disappointment at the lack of investment in the international education sector. “Our student funding system needs urgent attention – it’s time for the Job-ready Graduates Package to go,” he said. “JRG has unfairly altered fees for students and reduced funding to universities.”
Sheehy emphasized the importance of investing in Australia’s universities, citing the potential economic benefits of a fully skilled, university-educated workforce. “Our economy stands to gain AUS$240bn by 2050 from a fully skilled, university-educated workforce,” he said. “This is a serious return on investment that we can’t ignore – an economic dividend for all Australians.”
Universities Australia is calling on the next federal government to re-establish the Education Investment Fund, increase funding for research and development, lift the PhD stipend, and grow Australia’s international education sector sustainably.
The Independent Tertiary Education Council Australia (ITECA) has also criticized the budget, citing concerns that it has done little to address perceptions that international students are responsible for cost-of-living challenges. “Australia has a reputation as a global leader in delivering high-quality education and training to international students,” said Felix Pirie, ITECA’s chief executive. “However, recent initiatives, including those announced in this budget, have decimated the sector.”
The Group of Eight (Go8) has also reacted to the budget, claiming that it ignores the critical role research and development (R&D) and universities must play in Australia’s future prosperity. “In whatever sector of the economy the government is prioritizing, it is our research and innovation and our graduates who are critical to the nation fulfilling its economic and social potential,” said Group of Eight chief executive, Vicki Thomson.
The 2024-25 Budget shows the government’s commitment to education, with investments in higher education, schools, and international education. However, sector leaders argue that more needs to be done to support the international education sector and address the challenges it faces.
Key Budget Measures:
– Higher Education Loan Program: The government will make HELP fairer by improving the way indexation is calculated.
– New Commonwealth Prac Payment: $427.4 million to support eligible teaching, nursing, and midwifery, and social work students.
– FEE-FREE Uni Ready courses: $350.3 million to fully fund FEE-FREE Uni Ready courses.
– Australian Tertiary Education Commission: The government will establish the ATEC as an independent steward of Australia’s tertiary education system.
– Tertiary Education Harmonisation: $27.7 million to drive harmonization between the higher education and Vocational Education and Training (VET) sectors.
