Education Bodies Call Australia's International Student Cap Policy 'Chaotic'

Responding to the government's plan to limit the flow of foreign students, the International Education Council said it could harm Australia's reputation of being a world-class study destination, and warned against setting a one-size-fits-all solution.

Australia had announced its plan to set a cap on international student enrolments to help with the national housing demand and to ensure "integrity and sustainability" of the education sector.

Phil Honeywood, the CEO of the International Education Association of Australia, which includes universities, told ABC News the draft policy required clarity on the changes, and that it could damage Australia's reputation.

"We are worried that we're going to have policy overreach where too much, too quick is going to damage Australia's reputation as a welcoming, safe, world-class study destination," he added.

In a move to slow down the migration influx of foreign students that had increased after Australia lifted Covid regulations, the government had proposed policies to tighten visa rules and a stricter language requirement. In 2023, 787,000 international students studied in Australia -- a number that exceeded pre-pandemic levels.

Mark Scott, vice-chancellor of the University of Sydney, pointed out that even as university finances break even on domestic students, research funding that falls short is filled by the revenue from international student fees. He added that reducing the intake of these students would affect the "number one service export industry in the country."

"We'll be saying to [the] government — listen carefully. Consult closely. Recognize the different universities and different providers have very different contexts. Let's not have a one-size-fits-all solution. Let's work carefully together to protect this market, to strengthen Australia's universities, and to see the benefits accrue to all Australian society that international students bring," he said.

"If you send a message to international students that they're not welcome, they have many other options. This is the number one service export industry in the country," he added.

The new policy would give power to the education minister to limit the number of student enrollments to each education provider, including specific courses or locations.

Calling it a "chaotic policy," the vocational education and training sector criticized the new measures as driven by "short-term populism" on migration, The Guardian reported.

The new policy could affect the "hundreds of long-established English-language private colleges", government high schools and private schools, Honeywood said. "It's going to cause a massive problem with 200,000 jobs potentially at risk," he added.

Home Affairs Minister Clare O'Neil said the meeting had been "positive and constructive."

"Our government is implementing big changes. We understand that. And we will work collaboratively with the sector to manage them," she said.

Shadow Finance Minister Jane Hume called the migration issue an area of "profound failure" for the government.