The Australian government’s plan to cap international student numbers has sparked warnings of significant job losses and economic costs from universities. The proposed policy, intended to address concerns over migration and housing shortages, could lead to 14,000 job losses and cost the economy up to AUD 4.3 billion, according to Universities Australia CEO Luke Sheehy.
The international education sector is Australia’s second-largest export industry, worth almost AUD 50 billion and supporting 250,000 jobs. “No other major export industry is treated the way international education is right now.” Sheehy said in a statement to the committee in Canberra on Tuesday. He criticized the government’s approach, stating that no other major export industry is treated similarly.
The government announced plans to cap international student numbers in the 2024 federal budget, following efforts to address fraud related to student visas. Visa application fees for international students have already increased by 125% to AUD 1,600 per application.
Experts, including Andrew Norton from the Australian National University, argue that the government should wait to see the effects of existing policy reforms before imposing further restrictions. Norton warns that the government’s approach will cause unnecessary damage and harm Australia’s reputation.
A parliamentary inquiry into the proposed legislation is due to report back by August 15, with the caps expected to take effect on January 1, 2025. The final details of the policy have yet to be confirmed.
