Course caps criticised
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A Labor-led Senate inquiry has called for course-level international student enrolment caps to be scrapped.
The Senate Education and Employment Committee has recommended removing a proposed ministerial power to set international student enrolment limits at the course level.
The recommendation follows widespread criticism from university leaders and education bodies who argue that such a provision would be unworkable and amount to government overreach.
The government plans to cap the number of international students entering Australia at 270,000 from January 2024.
This is part of a broader strategy to bring migration levels back to pre-pandemic figures and address issues with disreputable education providers.
However, a contentious aspect of the proposed bill is the power for the education minister to impose course-level limits on universities and TAFEs.
The Group of Eight (Go8) universities and the Business Council of Australia (BCA) were among the strongest critics of the proposal, warning that course-specific caps would weaken Australia’s international education sector, its largest services export.
The Go8 described it as “completely unworkable”, while the BCA stated it would have “unintended consequences” for migration and skills policies.
The committee recommends passing the bill, but without the ministerial power to cap student numbers at the course level.
The report concluded that managing such limits across thousands of courses would be impractical.
Instead, the committee suggested retaining institution-level caps, allowing different limits for regional and metropolitan campuses, and higher education versus vocational sectors.
Other proposed amendments include exemptions for specific student groups, requiring consultation with relevant agencies before setting limits, and moving the deadline for deciding yearly caps from September to July.
The legislation must pass before Parliament’s session ends if the caps are to take effect on January 1.
The inquiry report emphasised the potential economic risks of limiting international students.
The University of Sydney projected a 30 per cent cut could cost Australia $4.1 billion in GDP and nearly 22,000 jobs.
Go8 universities estimated that capping enrolments at pre-pandemic levels could result in a $5.3 billion economic loss and over 22,500 fewer jobs.
While some groups, such as TAFE Directors Australia, welcomed the opportunity to elevate the vocational sector with enrolment caps, concerns over job losses and reduced revenue remain.
The National Tertiary Education Union (NTEU) warned that the bill could trigger job cuts similar to those seen during the pandemic.
The University of Melbourne suggested that limiting international enrolments by 30,000 students a year would cost Victoria $6.7 billion over three years and eliminate 14,000 jobs.
Education Minister Jason Clare has defended the course-level cap as a “reserve power” intended to prevent misuse of specific courses for migration.
However, the committee's recommendations and feedback from universities suggest that the final focus will be on institution-level caps rather than individual courses.
With only two sitting weeks left, the government faces a tight deadline to pass the bill before it is scheduled to come into effect.
The full report is accessible here.