Universities in Australia are facing a potential crisis as the government proposes to cap overseas student enrolments for two years starting in 2025. The Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 has sparked concerns among university officials, with warnings of thousands of job cuts across the sector.
Luke Sheehy, the chief executive of Universities Australia, expressed his concerns during a Senate inquiry, stating that the proposed policy could lead to 14,000 job losses within the industry. He described the bill as a „political smokescreen“ aimed at gaining an advantage in a „poll-driven battle over migration.“
The impact of the proposed cap on international student enrolments would be significant, with Sheehy highlighting that it could result in 60,000 fewer students arriving in Australia, leading to a $4.3 billion hit to the economy. The potential job losses in the university sector alone could reach 14,000, with additional repercussions for small businesses that rely heavily on international students.
International education is a vital industry in Australia, contributing $48 billion to the economy in 2023. This figure includes spending on tuition, housing, living costs, and other expenses by international students. The sector is the second-largest export industry in the country, supporting approximately 250,000 jobs.
Despite its economic importance, Sheehy noted that international education is not receiving the same level of support as other major export industries such as mining, agriculture, and tourism. The government’s recent migration strategy, which includes stricter visa restrictions and English literacy tests, has already had an impact on study visa grants for overseas students, which were down by nearly a third in the first four months of 2024.
The potential consequences of the proposed cap on international student enrolments are concerning for universities, students, and the broader economy. As the government seeks to tighten regulations and restrictions on international education, the sector is bracing for significant challenges ahead. It remains to be seen how universities will navigate these changes and what the long-term implications will be for Australia’s education system and economy.