Capping international students poses big risk: Uni Melbourne VC

By Our Reporter
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University of Melbourne campus // Photo by Indira Laisram

University of Melbourne Vice-Chancellor Professor Duncan Maskell will appear today before a Senate Inquiry into the Federal Government’s Education Services for Overseas Students Amendment (Quality and Integrity) Bill, joining other vice-chancellors to voice concerns.

Professor Maskell will highlight the crucial role international education plays in Australia’s economy, society, and culture. He will argue that the proposed Bill, in its current form, threatens to undermine these contributions significantly.

In his remarks, Professor Maskell will stress that international education is a key national asset, generating over $47.8 billion annually for Australia. This includes $30.5 billion spent on goods and services, which supports 250,000 jobs and contributes to local businesses. International students also enhance campus diversity and support local economies, a University of Melbourne news release said.

He will caution that the proposed cap on international student numbers could jeopardise the sector’s reputation and long-term viability, particularly given the sector’s recovery from pandemic-induced challenges. Professor Maskell argues that the caps unfairly penalise universities for a temporary surge in student numbers due to the pandemic and could harm all students.

Professor Maskell will also note that universities are still dealing with pandemic-related deficits, with several Victorian universities reporting operating losses in 2023. International students’ spending was a significant driver of Australia’s economic growth in 2023, and limiting their numbers could further strain an already struggling economy.

The Australian Business Council, the Australian Chamber of Commerce and Industry, and S&P Global Ratings have voiced concerns about the potential negative impact of the caps on universities. Global rankings agency QS has also warned that these measures could affect the competitiveness of Australian universities.

Professor Maskell will argue that the Bill’s rationale is flawed. Home Affairs data shows that student visa grants are currently lower than pre-pandemic levels, and international students represent a minimal share of the rental market. Additionally, only 16% of international students stay in Australia post-graduation, and the Bill’s aim to shift enrolments to regional universities is unrealistic given student preferences for metropolitan areas.

The University of Melbourne has detailed its position and proposed amendments in its submission to the inquiry. Professor Maskell will call on the Government to reconsider the Bill in light of the extensive feedback received and to avoid further harm to Australia’s international education sector.


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