In the midst of worries over housing and service quality, Australian institutions threaten job losses and economic harm if the government caps the number of international students.

Australian universities are worried that if the government acts too quickly to impose limitations on the number of international students, it could result in the loss of many jobs. The proposed measure has been dubbed an unusual example of “ministerial overreach” by one trade association.A suggestion to restrict the number of foreign students that Australian universities can accept is presently being consulted. This strategy seeks to address concerns raised by the community regarding the high numbers of post-Covid migrants, which are making the country’s housing scarcity worse, as well as issues with the caliber of services offered by Australian university institutions.

Luke Sheehy, the CEO of Universities Australia, cautioned at a contentious Senate hearing on the new laws that the policy may cause 14,000 job losses in the industry and perhaps cost the economy up to A$4.3 billion (US$2.8 billion).

Sheehy told the committee in Canberra, “The sector is our second-largest export after mining, contributing almost A$50 billion to the economy and supporting around 250,000 jobs.” “International education is currently treated in a manner that no other major export industry does.”

In the federal budget for 2024, the government first declared its intention to cap the number of overseas students. This came after months of work by Clare O’Neill, the then-minister of home affairs, to combat fraud involving student and short-term visas.

Australia said in July that it would be boosting the cost of applying for an international student visa by 125%, to a total of A$1,600 per application.

The policy’s exact features are yet unknown; by August 15, a parliamentary investigation into the proposed legislation is supposed to provide a report. It is projected that the caps will go into effect on January 1, 2025.

In a recent report, Australian National University higher education expert Andrew Norton recommended that before imposing additional restrictions on overseas students, the government evaluate the results of the policy reforms it has already put in place.

“If the government continues on its current course, it may cause more harm than is necessary to accomplish its policy objectives. In a paper released by ANU’s Migration Hub, Norton stated that “its mistreatment of potential students could harm Australia’s reputation.”