Australia’s education minister has confirmed plans to cap international student enrollments. Draft Framework and has moved to the legislative implementation phase through the introduction of the ESOS Amendment Bill.

 

The caps on international student enrollments for Australia’s institutions are expected to be calculated over the next three months, as stated by Education Minister Jason Clare in an interview with Sky News on June 9. However, the VET sector has expressed concerns about this move. 

 

Troy Williams, CEO of the Independent Tertiary Education Council Australia, criticised Clare’s attribution of the growth in onshore international students primarily to those undertaking skills training courses rather than higher education courses. Troy Williams suggested that the Education Minister Jason Clare had been “poorly briefed,” arguing that the focus should be on the number of offshore primary student visa grants rather than just enrollments.

 

“The government has written [the framework] without the usual sector collaboration to ensure positive and sustainable impact. We desperately need meaningful consultation on these changes to avoid catastrophic impacts,” English Australia CEO Ian Aird told The PIE.  

“We urge the government to let the changes already introduced to take effect and to work collaboratively with the sector on a sustainable future,” he added.  

 

The Business Council of Australia (BCA), in a submission to the draft international education and skills strategic framework, highlighted the financial impact of the proposed cuts. BCA’s Bran Black noted that international students accounted for almost a quarter of all GDP growth over the year to March 2024. He emphasized, “We are playing with Australia’s fourth-largest export at a time when our economy is on a knife’s edge.” The sector, worth AUS$48 billion in 2023 and employing over 200,000 people, is crucial to Australia’s economic health.

 

Beyond the economic impact, Black stressed the importance of international students in enhancing diversity and filling essential workforce roles. “International students bring cultural diversity, enriching our communities and broadening perspectives. Moreover, many take on low-paying jobs that locals often avoid, which keeps essential services running smoothly.”

 

The Group of Eight’s submission also argued that the proposed enrollment caps would weaken the financial position of many Australian universities. A report by S&P highlighted that politically motivated caps could unravel a thriving industry and curtail critical institutional autonomy.

 

In a self-serving proposal the Go8 goes on to make a series of recommendations to government that would see “Public providers, universities and TAFE not subject to caps on international students as proposed in the Draft Framework and 2025 be used as a transition year for close consultation on international education.”

 

Minister for Home Affairs, Clare O’Neil, stated that changes to the migration system, including a significant increase in visa fees, were intended to fix a broken system. However, BCA argued that the hike would deter students from choosing Australia, potentially leading to lower economic growth. The Group of Eight’s analysis showed that international students are sensitive to price increases, making fee hikes an unrealistic strategy to compensate for lower numbers.

 

Group of Eight CEO Vicki Thomson described the visa hike as “death by a thousand cuts” to Australia’s most successful services export sector. She added, “Far from ‘restoring integrity in the international education sector,’ this measure will deter international students. The recent crackdown on visa approvals has already sent a strong signal that we are not open for business.”

 

The proposed caps on international student enrollments and the increase in visa fees have significantly heightened the risks to Australia’s education sector, economy, and global research standing. Regrettably, the government shows little regard for industry stakeholders, making ad hoc changes without consultation or considering the broader implications for the future of the industry.

 

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