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Home News Market Update

Policy Backlash: Peak bodies reject Dutton’s plan to slash international student numbers

Tracy HarrisbyTracy Harris
April 7, 2025
in Market Update
Policy Backlash: Peak bodies reject Dutton’s plan to slash international student numbers
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The response to yesterday’s international student policy announcement by Opposition Leader, Peter Dutton (TKN 060425) has been met with a swift rebuke from peak bodies and politicians alike.

Universities Australia’s (UA) Chief Executive Officer, Luke Sheehy, didn’t hold back on ABC News Weekend Breakfast, telling Michael Tetlow, “What we know is in the last 12 months both sides of politics have been in a bidding war to ruin this sector, to take a sledgehammer to international education in this country”.

In its media statement UA also warned that the proposed Coalition’s cuts and increased visa fees would damage the economy without solving the housing crisis.

“Slashing student numbers by tens of thousands would take a sledgehammer to one of the nation’s biggest income generators,” said Sheehy. “Students make up less than six per cent of the national rental market. The real solution is more homes, not fewer students.”

Sheehy was also critical of the proposed visa fee hike, saying that it would add even greater financial burden, especially for regional universities and those in outer metropolitan areas.

“These changes would hit the universities doing some of the heaviest lifting in skills, workforce and economic development – particularly in communities that can least afford it.”

Understandably, the Group of Eight (Go8) is feeling especially aggrieved by the Coalition’s policy announcement, not least of which being because its prospective students will face a more than tripling visa fee cost.

“It beggars belief that the Coalition would single out the Go8 for extra burden – Australia’s top universities all ranked in the world’s top 100 – that attract the best and brightest minds from our region and around the world,” said Group of Eight Chief Executive, Vicki Thomson.

The scapegoating of international students in the housing debate was a theme also picked up by the Go8, with Thomson calling for an end to the “easy politics of scapegoating international students”.

“Blaming international students for the housing crisis is flawed policy.  It’s been called out by the Business Council of Australia, the Property Council of Australia and others. Targeting international education will have damaging consequences across the economy. We can and we must do better,” said Thomson.

Dutton’s announcement was made while visiting an outer suburb of Melbourne, prompting condemnation from Victorian Minister for Finance, Economic Growth and Jobs, Danny Pearson.

“International students that come here to study often stay, providing essential skills or setting up new businesses. And those who return to their home country stay connected with Victoria, building stronger social and economic ties between our state and key global markets.

That means that Peter Dutton’s caps would not only damage our economy today, but deny our state opportunities in the future,” he said.

Appearing on Insiders as the news was breaking, Foreign Minister Penny Wong criticised Peter Dutton’s plan as the Coalition had opposed Labor’s planned caps through the ESOS Amendment Bill.

When pressed by David Speers about whether Labor would match the Coalition’s figures, she said “we will proceed with the policy framework that Tony Burke and Jason Clare have announced, which is looking to reduce the number of foreign students; which has delivered that and which Peter Dutton opposed”.

It’s hard not to be critical of TAFE Directors Australia (TDA) which has consistently been underwhelming in its responses during the policy debate about international students. In the TDA Newsletter published this morning it gets the facts wrong: Under the Coalition plan, public universities would be able to enrol no more than 115,000 international students a year, while private and non-university higher education providers would be permitted to enrol up to 125,000. The measures would not impact private universities and vocational education providers.

That’s not what the Coalition said. It’s statement, which is readily available online says, “Under our plan, there will be at most 115,000 overseas student commencements each year at publicly funded universities and at most 125,000 in the VET, private university and non-university higher education sectors”.

Both Universities Australia and the Group of Eight called for collaborative policy making.

“We’re ready to work constructively on real solutions – but cuts like these will only hurt the nation’s prosperity at a time when we need to be investing in our future,” said Sheehy, and Thomson said, “The Go8 has been very clear that we agree it is time to review our international student market and have a detailed and evidence-based review of the best policy settings to ensure Australia is set up for a changing future. We are up for that discussion…”

Tags: 2025 Federal Election
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Tracy Harris

Tracy Harris

Tracy Harris is an international education leader, consultant and commentator with more than three decades of experience across universities, pathway and private higher education providers, government and the not-for-profit sector. She is Principal of Tracy Harris Solutions, through which she undertakes independent consulting, advisory work and sector commentary. Most recently, Tracy served as interim Chief Executive Officer of the Australian Guild of Education, leading the organisation through a period of renewal and development. Previously, Tracy led Swinburne College as General Manager and Dean and was Executive Director, Global Development and Performance at RMIT University. She has also held senior public sector roles with the Australian Trade and Investment Commission (Austrade), including overseas representation, and the former Australian Education International (AEI). Tracy is a Board member of the International Education Association of Australia (IEAA), an IEAA Senior Fellow and a Graduate of the Australian Institute of Company Directors. All views expressed in Tracy’s writing are her own and do not represent the views of any organisation with which she is associated.

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Reframing the Narrative: Are international graduates truly job-ready?

Reframing the Narrative: Are international graduates truly job-ready?

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