Go8 warns of ‘disastrous’ effect of foreign student cap

In the wake of a proposed limit on the number of international students by the Australian Labor government, the country’s leading universities have voiced concerns about the future of the country’s multi-billion-dollar higher education industry.

In its submission to the Draft International Education and Skills Strategic Framework, the Group of Eight (Go8), a conglomerate of eight research-intensive universities with over 400,000 students, said the approach adopted in the framework “runs the risk of a string of unintended yet foreseeable consequences that could have a disastrous effect on both Australian society and our economy”.

The submission dated 14 June notes that the “central drivers” of the draft framework are “provisions for the Minister for Education to cap the number of students at provider and course level for all universities, including a link to the supply of additional student accommodation”.

The Go8 believes that the introduction of these measures will “fundamentally compromise” Australia’s international education sector.

“It is critical to bear in mind what is at stake: that is, the viability of a AU$48 billion (US$32 billion) export industry – Australia’s largest export services industry – that underpins essentially all university sector operations and in 2023 contributed half of Australia’s economic growth,” the Go8 stated.

Sensible discussion needed

Speaking to University World News, Go8 Chief Executive Vicki Thomson said the cap would affect the national economy, lead to job losses, impact the tourism sector and strip funding from research.

Go8 research funding from industry and other non-government sources is twice that of the rest of the sector combined.

“The suggestion that our international students are responsible for the economic challenges that our community faces, such as housing, and that cutting student numbers is the solution, is fanciful,” said Thomson, adding that Australia needed sensible, informed discussion across the political divide to reign in such a narrative and to ensure that going forward the international education sector is based on quality and integrity.

She said the proposed cap would dent Australia’s standing in the international education arena.

“We punch well above our weight. Australia is just 0.33% of the world’s population. All eight Go8 universities are ranked in the world’s top 100 with six in the top 50.

“We invest AU$7.7 billion in research and development each year and carry out 70% of the nation’s university research. This is a remarkable achievement which can easily be destroyed without nuanced and careful policy,” Thomson said.

Legislative package

The government last month pitched a legislative package, of which the draft framework is one aspect, that will introduce caps on the number of international students seeking to pursue tertiary education in the country.

As per the plan, there would be a pause on applications for registration from new international education providers and of new courses from existing providers for periods of up to 12 months.

“We think we should manage the amount of foreign students in the system,” said Treasurer Jim Chalmers when announcing the details of the package last month.

This was followed by the Education Services for Overseas Students Amendment (Quality and Integrity) Bill presented to the parliament on 16 May by Minister for Education Jason Clare.

Clare said the plan was designed to ensure that the international education industry, the country’s fourth largest export overall, educating 3 million people from around the world in the last decade, delivers the “greatest benefit” to Australia whilst “maintaining its social licence” from the Australian people.

He said limits “may relate to a [higher education] provider level ‘total enrolment limit’, or at the course level imposing a ‘course enrolment limit’, or a combination of the two”. In setting enrolment limits, the minister will take into account the relevance of courses to Australia’s skills needs.

The government will be able to set limits on enrolments at a provider level with effect from 1 January 2025.

The government has also proposed that when a higher education provider has not delivered a course to international students for a period of 12 months they will have their registration cancelled.

The proposed legislation also provides the government with the power to prevent providers from delivering courses which have significant quality and integrity issues, or which have limited value to Australia’s skills needs.

Similarly, it introduces the ability for the minister to stop accepting or processing applications for registration of new providers and new courses.

A deterrent

The Go8 has warned that the government’s overall approach could affect Australia’s ability to attract international talent.

“International students are extremely sensitive to where and what they study. QS 2024 World University rankings indicate that over half (54) of the top 100 ranked universities in the world can be found across Australia, Canada, New Zealand, the US and the UK, with nine from Australia.

“While this is an outstanding result that demonstrates the quality of our higher education sector, it also demonstrates the choice of quality institutions that are available to international students,” it said.