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Calls to cap international students ‘nonsensical’

Julie Hare
Julie HareEducation editor

Mounting pressure on the federal government to cap the number of international students would do little to counter the housing crisis or inflation, experts say, but could cause long-term damage to the education sector.

Respected economist Chris Richardson and former treasurer Peter Costello are among high-profile figures who have said that net migration, particularly international student numbers, needs to be cut.

Capping international student numbers would not solve the problem it was trying to fix, experts say. Louie Douvis

International student numbers hit a record 725,000 in 2023, with hundreds of thousands more staying in the country on a variety of post-study and pandemic visas.

One in every 25 people currently living in Australia is either a student or a former student.

However, experts say capping student numbers is a simplistic solution to a complex problem that could potentially resolve itself in the next 12 to 18 months as certain visas come to an end and people return home.

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There are still well over 100,000 people in the country on a 408 visa, which was created during the pandemic to give temporary migrants the right to work. Home Affairs Minister Clare O’Neil cancelled the visa in late August over concerns it was abused by dishonest migration agents and students as a back door to the jobs market.

Those people will depart within the next six to nine months unless they can get moved onto another visa.

A separate category that allows vocational students to stay in Australia for 18 months to study after graduation was attracting large numbers of Indians who were using visas as a back door to the jobs market.

In September, there were 193,000 people on post-study work rights – or 485 visas – 100,000 more that in 2019. A surge in vocational education enrolments is likely behind that figure.

Obvious scapegoat

Jake Foster, chief commercial officer with student recruitment firm AECC, said calls to cap student numbers were using students as an obvious scapegoat to a complex situation.

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“There are only 3-4 per cent more international students studying in Australia in 2023 than there were in 2019, many of whom live in purpose-built student accommodation,” Mr Foster said.

“It took the Australian international education sector years to recover from COVID border closures; we need to be very careful of the messages we send to prospective international students considering Australia.”

While numbers have recovered dramatically, figures were just 23,847 higher than in 2019, he said, which was unlikely to be a major contributor to rental shortages.

Sensible steps

Abul Rizvi, a former deputy secretary of the Department of Immigration, said the government had already taken several sensible steps to tighten student migration policy, but they were not sufficient to get numbers down to a level that would be acceptable to the community at the next election.

“I suspect there are steps the government will announce in the forthcoming migration strategy to further tighten student policy,” Mr Rizvi said.

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“But will those steps come soon enough to prevent another surge in students associated with the next academic year? I doubt it.”

However, he said capping student numbers would be an ineffective and blunt instrument that would result in the high-quality students Australia wants to attract going elsewhere because of delays in visa processing.

Phil Honeywood, chief executive of the International Education Association of Australia, said he was confident there would not be caps on incoming international students.

‘Range of measures’

“I understand that a range of measures is under consideration that will put the focus on quality over quantity,” Mr Honeywood said.

Rohan Pitchford, an economist with Australian National University, said calls for a cap on students were “nonsensical”.

“It also ignores the positive impact such students have in supply of labour to employers who are struggling to find workers at the minimum wage. This aspect is anti-inflationary,” he wrote on X.

Julie Hare is the Education editor. She has more than 20 years’ experience as a writer, journalist and editor. Connect with Julie on Twitter. Email Julie at julie.hare@afr.com

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