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Home News Policy

International Students Cap Risks Creating Social Division

Naresh GulatibyNaresh Gulati
September 10, 2024
in Policy
International Students Cap Risks Creating Social Division
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The federal government’s decision to cap international student numbers is not only ill-conceived and damaging to Australia’s well-regarded higher education sector but also risks stirring up unwanted social division.

Australia has one of the largest overseas-born populations in the world and has a well-earned reputation for enjoying a high level of social cohesion.

It also has one of the  highest ratios of international students per capita in the world.

The number of international students coming to Australia to study over many decades has not only made our country more diverse, but also globally respected and recognised as a provider of international education.

But by cutting the number of international by 53,000 to 270,000 from next year, the government is sending out a pretty clear message that Australia doesn’t want international students, nor values the huge contributions they make to our economy and society.

It has desperately tried to drum up public support for the caps by claiming that fewer international students will help solve Australia’s housing crisis – a claim that has been dismissed by the Property Council and the National Housing Supply and Affordability Council among many others.

International students only hold four per cent of Australia’s rental market, while glaring signs pointing to COVID influences, such as repurposing second bedrooms into home offices, as having a greater impact on the availability and affordability of housing.

Blaming international students for causing Australia’s housing shortage is not only untrue, but also risks stirring up resentment in the community which can lead to more unfair accusations. What next will international students be blamed for? Will it be ‘taking jobs away’?

It’s easy for these kinds of accusations to lead to social division, which in the worst-case scenario potentially put the safety of international students under threat while they are going about their daily lives.

As Vicki Thomson, Chief Executive and Board Director of The Group of Eight universities, has noted not all students who study in Australia want to stay here permanently. Only 16 per cent of international students remain in Australia after they complete their tertiary studies, with the remainder departing for their homeland or elsewhere.

From an economic perspective, the higher education sector generated  $48 billion last year, making it the country’s fourth-largest export and meant that international students accounted for almost 25 per cent of Australia’s GDP growth.

Instead of the government in effect blaming international students for Australia’s housing crisis it should instead be promoting the enormous value international students bring to our country. As a former international student myself, I came to Australia from India seeking a high-quality education and to contribute to this wonderful country. I remain grateful for my education and have been fortunate to make a life here and build a successful business.

My experience has been shared by tens of thousands of international students who were attracted to Australia for its internationally-renowned higher education – and to bring value to local communities, the jobs market and more.

If we look around today, international students are working hard in a range of industries including logistics, hospitality, driving taxis and petrol stations.

It wasn’t that long ago that during the COVID-19 lockdowns that Australia was struggling to find workers for these industries particularly because international students were unable to come here.

That combination of a high demand for labour and lower numbers of international students resulted in higher costs for businesses, which increased the prices they charged customers.

The reduction in international student numbers as a result of the new caps means Australia could foolishly end up finding itself in a very similar situation again.

Not only that, those international students who are able to study here will be forced to ensure being falsely blamed by politicians for issues such as housing.

All this is unnecessary and will end up shattering Australia’s reputation as not only one of the world’s leading providers of tertiary education but as a nation that welcomes and appreciates the contributions of international students.

Tags: capsESOSGovernment PolicyNational Planning LevelsOpinion
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Naresh Gulati

Naresh Gulati

Naresh Gulati is the Founder and CEO of Ascent One. He has developed some of the international education sector’s most advanced industry engagement tools. This includes Ascent One, the world’s first ecosystem platform helping education providers manage agent networks, admissions and marketing in one central location. His other business, BPO Intelligence, has transformed offshore print, storage and distribution for more than 200 global education clients, including most of the Australian universities.

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Anger and sadness – students respond to enrolment caps

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