As Tyrus Maxwell writes, the Federal Government has announced a plan to drastically reduce the international student intake, as part of a wider push to cut net annual migration to 260,000 by 2025.
Under new blueprints revealed by the Federal Government, Education Minister Jason Clare could have the power to set an annual maximum intake, with universities having little control. It’s been poorly received by universities, especially the ‘Group of Eight’ (University of Melbourne, University of Sydney, Australian National University, University of Queensland, University of Adelaide, Monash University, the University of Western Australia, and UNSW Sydney).
Economic benefit sidelined
International students contributed roughly $29B to the Australian economy in 2022, after COVID-19 restrictions were mostly pulled back. The University of Sydney alone made around $1.5B that year from fees and other costs. Each international student pays in fees four times what domestic students pay, thus they become a form of easy revenue for universities. These institutions have therefore become more reliant on the income they make from international students.
Soon after the Government’s announcement, peak bodies cautioned against the capping of international student intake. Their reasoning is primarily that it would ruin Australia’s reputation as a “welcoming, world-class study destination”, sending a message to international students that they are no longer welcome. This is fair reasoning, although their opposition could have a more ulterior motive: a reduction in students could see their profits decline.
Hefty impacts to hit university sector
The impact on tertiary education has the potential to be catastrophic. As much as 50%-80% of undergraduate education staff are casually employed (meaning that they are hired to teach on a semesterly basis), some with minimal job security. A dramatic decrease in income for universities could bring with it dramatic cuts to jobs, hours, and wages.
From 2021-2023, over 30,000 jobs were lost in the education sector, primarily due to COVID-19 restrictions. In 2021, a restructuring at UoN led to the loss of 150 jobs, and this was at a time where it recorded a $185M surplus.
Back then, roughly 44% of UoN staff were casually employed, while 28% were on a contract, and only 28% were permanently employed. Disputes over casualization and pay rates were a key issue raised by the National Tertiary Education Union (NTEU) as they engaged in strike action across the country in May last year, including at UoN.
Universities have already responded to the Government’s plan by implementing cost-cutting and restructuring courses. While politics is played, and university administrators bicker over profit margins, the education of hundreds of thousands of international students, as well as the jobs of many, are at risk. This could very well throw the education sector into crisis.
