With Australia’s federal election approaching, though the exact date remains unconfirmed, Opposition Senator Sarah Henderson recently addressed university leaders at the Universities Australia Solutions Summit in Canberra. In her speech, Henderson reinforced the Opposition’s stance that Australian students should be the priority in higher education policies. She reiterated the commitment of party leader Peter Dutton to implementing stricter caps on international student numbers than those currently proposed by the government. Henderson emphasized that these restrictions would primarily target major metropolitan areas, particularly Melbourne and Sydney, where two-thirds of the country’s international students are based. However, she assured universities that the plan would be designed to offer long-term stability, incorporating thorough consultation processes and special considerations for regional institutions that rely on foreign student enrollments for economic sustainability.
A vocal critic of the government, Henderson played a key role in Senate hearings in 2024 when the Albanese administration introduced legislation aimed at capping international student enrollments at the institutional level. That bill remains stalled in the Senate, with the Coalition arguing that it fails to adequately address the issue of high international student numbers. Reflecting on the past two years since she last spoke at the summit, Henderson described the period as tumultuous, attributing the challenges faced by higher education providers to what she called the government’s poor management. She accused the Albanese administration of allowing excessive numbers of international students, which she claimed had exacerbated the nation’s housing crisis. Additionally, she criticized the government’s handling of student caps, arguing that its approach had negatively impacted regional universities. Henderson pointed to record-high enrollment figures, with 849,000 international students—a rise of 8.3% since December 2023—arguing that this has placed undue strain on housing, infrastructure, and public services. However, research suggests that we often unfairly blame international students for Australia’s housing crisis, given that multiple factors contribute to the ongoing shortage.
She further linked the increase in international students to what she termed Labor’s “Big Australia” policy, which she described as a mismanaged immigration strategy. She also highlighted the financial benefits that some of Australia’s most prestigious universities, particularly those within the Group of Eight, have gained from international student fees. However, she argued that this reliance on international student revenue was unsustainable and failed to align with public expectations. Henderson also referenced Ministerial Direction 111, which replaced the earlier directive MD 107 in December. The revised visa policy prioritizes student visas up to 80% of each institution’s designated cap, as set under the government’s thwarted National Planning Level for 2025. She claimed that these changes, while aiming to regulate international student numbers, have disproportionately affected regional universities. On the previous day, Education Minister Jason Clare addressed the summit, defending the government’s approach to visa regulations. Clare emphasized that the system ensures fairness in visa distribution while allowing universities to maintain a sustainable number of international students.
Meanwhile, Universities Australia CEO Luke Sheehy, speaking at the National Press Club of Australia, urged policymakers to recognize the critical role of international education in the country’s economy. He underscored that the sector is Australia’s largest export outside of mining and plays a vital role in funding university research, supporting 250,000 jobs, and subsidizing the education of domestic students. Sheehy argued that reducing international student numbers would have significant economic consequences, noting that the Reserve Bank of Australia has warned that federal policies limiting foreign student enrollments are already undermining education exports. He stressed that international education should not become a political issue, as it provides essential financial and cultural contributions to Australia.
He further highlighted the valuable role that international students play in the workforce, contributing to industries such as hospitality, retail, tourism, and healthcare. Additionally, he emphasized their impact on Australia’s cultural diversity and global engagement. Ultimately, Sheehy criticized the government’s restrictive policies, suggesting that prioritizing short-term political gains over long-term economic and educational benefits is a misguided approach. As the federal election draws nearer, the debate surrounding international student caps is expected to remain a key issue in discussions on Australia’s higher education and immigration policies.
