The National Tertiary Education Union (NTEU) has expressed concerns regarding the heavy reliance of Australian universities on international student fees, which has cultivated a culture driven by revenue, profit, and competition. This dependence is viewed as creating an unstable financial model for higher education institutions.
Voices from various sectors have echoed these concerns, particularly as the federal government moves to reduce the number of international students. Luke Sheehy, the Chief Executive of Universities Australia, highlighted that universities have come to rely on international student revenue to fund their operations due to declining government support. This includes financing teaching, research, infrastructure projects, and employment of staff in well-paid positions.
In terms of proportion, Australia hosts more international students than any OECD country except Luxembourg, surpassing the UK, Canada, and the United States. The Group of Eight (Go8) universities are notably dependent on these fees, with international students comprising 47% of the total student body at the University of Sydney and over 35% at institutions like the University of Melbourne, the Australian National University, the University of Queensland, and the University of Adelaide.
Financially, universities earn nearly twice as much from international students compared to domestic students. In 2023, the average revenue per domestic full-time equivalent student was $22,996, whereas for an international student it was $41,117. Alison Barnes, President of the NTEU, argued that this growing dependence has driven the “corporatisation” of the sector. She acknowledged the value international students bring but criticized the view of these students as mere revenue sources. The COVID-19 pandemic exposed the inherent risks of this reliance, demonstrating its instability.
The federal government’s recent strategy to address Australia’s migration system included measures affecting international students. Education Minister Jason Clare emphasized the need to protect Australia’s reputation as a high-quality education provider, introducing tougher English-language requirements and targeted visa scrutiny for high-risk providers. Subsequent actions aimed at reducing the influx of international students included capping their numbers and significantly increasing visa application fees from $710 to $1,600. The International Education Association of Australia likened this to “death by a thousand cuts.”
Sheehy criticized the government’s approach as “policy chaos,” warning that it could lead to significant job losses and underscoring the need for certainty, stability, and growth in the sector. He stressed that international education is a substantial Australian success story and that any policy changes must consider their broad impacts.
Abul Rizvi, a former deputy secretary at the immigration department, has advocated for a minimum university entrance exam score to replace the current reforms. He argued that this would ensure institutions prioritize academic excellence over tuition revenue. Rizvi has been critical of the sector’s long-standing pursuit of tuition revenue at the expense of learning integrity. He contended that increasing visa fees would deter quality students, ultimately harming the sector.
Gwilym Croucher, a higher education expert at the University of Melbourne, pointed out that international student revenue has led to significant resource influxes but also created inequalities among institutions. For instance, the University of Sydney derives over 40% of its total revenue from international enrolments, surpassing government funding. Croucher noted that this financial dynamic allows the government to avoid making tough resource allocation decisions.
In 2022, universities received $34.7 billion in revenue, with $8.5 billion coming from international students—a significant increase from $4 billion in 2012. Despite this growth, federal investment in research and development has remained below the OECD average, reflecting a gradual decline in government support since the global financial crisis.
Matthew Brown, Deputy Chief Executive of the Go8, emphasized that international student revenue compensates for government underfunding in critical disciplines like engineering, health, and science. He warned against using international students as scapegoats to address short-term migration spikes and housing pressures.
Barnes also highlighted the lack of adequate support for international students, despite increased marketing and recruitment efforts. She noted that international students often struggle with academic integrity issues due to financial pressures and inadequate support systems. Sahampath Hettiarachchi, President of the Monash Graduate Association, linked financial stress to higher incidences of academic misconduct, underscoring the need for better support mechanisms for international students.
