The Australian government’s recent stringent measures targeting overseas students could lead to significant job losses in universities and other sectors, a former policy adviser for the Labor Party has cautioned. According to experts, these policies may endanger approximately 4,500 jobs within universities and tens of thousands more in the hospitality and retail industries.
Universities Australia Chief Executive, Luke Sheehy, addressed these concerns at a Queensland conference, highlighting the potential economic turmoil resulting from a sudden bipartisan reversal on international education policies. Sheehy emphasized that the expected changes in visa processing alone could cost universities around A$500 million (£261 million) this year. Moreover, a proposed “cap by stealth” on international student numbers could jeopardize Australia’s A$48 billion international education industry.
Sheehy warned that this sector, which supports around 250,000 jobs reliant on revenue from foreign students and their families, is at risk. These jobs include a substantial portion of the international tourism workforce. The revenue from international students also helps fund the salaries of 545,000 nurses.
Both the government and opposition parties are targeting international students as part of broader efforts to reduce migration, according to Sheehy’s speech at the Independent Tertiary Education Council Australia (ITECA) higher education symposium in Surfers Paradise. He criticized the lack of consideration for the broader implications of such politically driven policies. With mounting budgetary pressures, Sheehy questioned the wisdom of undermining a significant export industry that sustains the economy.
Sheehy, who previously advised former Labor tertiary education minister Chris Evans and shadow education minister Tanya Plibersek, pointed out that both major Australian political parties had previously supported a post-pandemic increase in international student numbers. However, this support shifted as the parties engaged in an election-driven competition over migration policies.
The former Liberal-National coalition government had advocated for measures to facilitate the rapid return of international students, aiming to rejuvenate the foreign student market. In contrast, the current Labor government, while initially criticizing its predecessor for urging international students to leave during the pandemic, praised its own efforts to reduce visa processing backlogs. However, it has now imposed new restrictions, effectively reversing its previous stance.
Such policy reversals contradict the long-standing bipartisan support for international education, which has been essential in compensating for funding shortfalls in university infrastructure and research. Sheehy stressed that universities had been encouraged for decades to diversify their income sources, including through international education.
In an interview with Sky News, Sheehy argued against blaming international students for Australia’s current housing crisis. He noted that rental prices and housing concerns had escalated during a period when international student numbers had plummeted due to the COVID-19 pandemic. A report by the University of Technology Sydney further dispelled concerns that Chinese house buyers, including students and their families, were significantly inflating real estate prices and reducing rental availability.
James Laurenceson, director of the Australia-China Relations Institute (ACRI), authored the report, which outlined that foreign buyers, such as international students, are subject to application fees of up to A$42,300 for purchasing residential properties in Australia. These buyers also face substantial “vacancy” fees if their properties remain unoccupied for more than six months annually.
The report highlighted that Chinese nationals accounted for just A$3 billion of the A$613 billion in Australian real estate transactions last year. Furthermore, many of these properties would be sold once the foreign residents left Australia. Laurenceson emphasized that temporary residents, such as international students, could only buy established dwellings for personal residence during their stay in Australia, and these properties must be sold once they are no longer residents.
In conclusion, the crackdown on overseas students poses significant risks to Australia’s economy, particularly to the higher education sector and related industries. Experts urge the government to reconsider these policies, emphasizing the need to sustain and grow industries that are crucial to the nation’s economic health.
