A Senate committee has paved the way for controversial caps on international university students, giving the green light to a government plan that critics warn will rip millions in revenue from the sector.
But with only 10 sitting days left in 2024 and Parliament seeking several amendments, the government faces a tight timeline to have the caps in place for 2025, while a costly “cap by stealth” in the interim has angered universities.
The Labor-led committee recommended the government bill that will allow the caps be passed, but called for significant amendments, including removing the ability to set course-level enrolment limits.
In its final report, the committee acknowledged the backlash to the plan.
But it said the international education sector “must be managed in a way that allows it to grow sustainably over time, delivers the greatest benefit to Australia, and maintains its social license from the Australian people”.
The committee has recommended amendments to exempt specific classes of students, including by citizenship, from enrolment limits – an allowance the government has put on the table.
The bill should also be amended to require the minister to consult more widely before setting future limits and for more notice to be given on yearly caps.
The government has already agreed to scrap another controversial mechanism that has limited international students over the last year, Ministerial Direction 107, and the committee called for this to happen as soon as the caps bill passes.
“Under MD107, almost 60,000 fewer visas have been granted in higher education, stripping an estimated $4 billion out of the economy and putting at risk 14,000 jobs in the university sector,” Universities Australia CEO Luke Sheehy said on Thursday.
“This is a cap by stealth that is damaging not just the national economy, but it is also causing serious financial harm to our universities, particularly those in outer suburban and regional areas.
“The government’s commitment to keep this instrument until it legislates international student caps means this self-inflicted economic harm will continue until at least 18 November 2024 [when Parliament next sits].”
The Coalition has been critical of the process leading to the caps but has also pledged to slash international student numbers, raising the prospect of the bill’s swift passage when it is debated.
But the opposition and key crossbencher David Pocock have flagged they will seek significant changes, while the Greens have called for the bill to be scrapped.
Senator Pocock is seeking delays to some parts of the bill to ensure a smoother transition.
“We need to have a sensible conversation about migration and then develop a plan that takes into account housing, infrastructure and the impact on the environment, but I am concerned this bill is a knee-jerk reaction and poorly thought through,” he said.
“At the same time that the government is rushing this it is going slow on other big reforms that will make a huge difference to students, like abolishing the failed Job Ready Graduates program that is driving up the cost of degrees, and changing the date on which student loans are indexed so we don’t charge interest on debts already repaid.”
The Greens want the caps bill scrapped altogether, with the party’s Education spokesperson and former university researcher Mehreen Faruqi accusing the government of “crushing” the sector to “look tough on migration before a federal election”.
“International education, international students, and universities will become collateral damage as a result of this terrible policy,” she said.
In dissenting remarks, Senator Faruqi said the majority report had not reflected the widespread concerns of the sector.
“Overall, the report fails to reflect the strong opposition to international student caps, the flaws in methodology and the way the caps have been formulated.”
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