Australia (Commonwealth Union)_ The Australian government has firmly rejected recent reports suggesting that international student enrollment might be capped at 40% of total university places. Accordingly, Australian Education Minister Jason Clare has publicly refuted claims of such a restrictive measure, emphasizing that the government is “not intending” a 40% cap on international student numbers. The confusion arose following media reports that indicated a potential 40% cap, causing concern among stakeholders in Australian education. Clare addressed these reports on Thursday, clarifying that the Albanese government is committed to protecting the integrity and social license of Australia’s international education sector, which is a significant national asset.
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In May, the Australian government announced its intention to impose a 40% international student cap as part of a broader strategy to manage increased immigration. This decision followed criticism from opposition leader Peter Dutton and his Coalition, who argued that the surge in international arrivals needed to be addressed. Subsequently, in July, Labor doubled the non-refundable application fee for international students to further manage immigration numbers, aiming to reduce net migration from 528,000 in 2022-2023 to 260,000 by 2024-2025.
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Despite these measures, the specific details of the proposed cap on international student enrollment have yet to be finalized. The Australian economy’s current softness has led some government officials to reconsider the potential impacts of a more restrictive cap, suggesting that economic growth should not be sacrificed for political gains related to immigration policy. Additionally, the Australian Financial Review reported earlier this week that the cap could be as low as 40% of total enrolments, prompting significant concern within the academic community. In response to this claim, Clare promptly dismissed these reports, asserting that such a cap is not under consideration. During a press briefing in Sydney, Clare stated, “That is not right. I have seen those reports. That is not what we are intending to do”.
Furthermore, Clare underscored the value of international education, describing it as Australia’s fourth largest export industry, which contributes substantially to the economy. He emphasized that international students play a crucial role in not only boosting Australia’s financial standing but also fostering international friendships. Clare also assured that the government’s focus is on preserving the system’s integrity while ensuring its continued operation. Additionally, the education sector has been vocal about its concerns regarding the proposed cap. During a Senate inquiry hearing, Universities Australia CEO Luke Sheehy criticized the proposed bill as rushed policy and a political smokescreen. Sheehy argued that international students are vital to Australia’s economy, having significantly contributed to GDP growth and potentially averting a recession. He warned that a reduction in international student numbers could lead to job losses, diminished economic growth, and decreased funding for domestic teaching and research activities.
Further analysis by Professor Richard Holden from UNSW Business School revealed that a return to 2019 levels of international student enrolments could result in a $11.6 billion hit to Australia’s economy by 2025, equivalent to approximately 0.5% of GDP. Holden also suggested that such a decline could potentially trigger a recession. Additionally, Vicki Thomson, CEO of the Group of Eight (Go8), highlighted the severe economic consequences of capping international enrollments. According to her estimates, restricting enrollment to pre-pandemic levels could lead to a loss of more than $5.3 billion in economic output and the loss of 22,500 jobs. In light of these concerns and the broader economic context, Clare indicated that more detailed information about the cap levels will be provided in the coming weeks. As Australia navigates its immigration policies and economic strategies, the future of international student enrollment remains a critical issue for both the education sector and the national economy.
