The Albanese Government's decision to revoke Ministerial Direction 107 acknowledges the severe financial pain, damage and uncertainty it has caused universities and the economy.
Universities Australia Chief Executive Officer Luke Sheehy called the decision a win for all Australians, paving the way for sustainable growth in the critically important international education sector.
"This is the commonsense decision that was desperately needed to deliver some of the certainty and stability our universities have been seeking," Mr Sheehy said.
"MD107 has wreaked havoc, stripping billions of dollars from the economy and inflicting incredibly serious financial harm on universities, particularly those in regional and outer suburban areas.
"We have called for it to be revoked since June and we strongly support the Albanese Government's decision to create a more even playing field for universities.
"Internationalisation and international students are critically important to our economy, our society and our universities. They never deserved to be positioned as cannon fodder in a political battle over migration and housing.
"Declining government investment in higher education teaching and research over the last decade has meant our institutions have become necessarily reliant on international student revenue to fund core business.
"Australia needs more of both - more skilled graduates to fuel our workforce and more research and development to drive our progress.
"These activities are key to building a stronger, more prosperous future for all Australians.
"We want to work constructively with both major parties to develop revised policy options that enable our international education sector to continue delivering for the economy and universities.
"As a starting point, the 145,000 places allocated to universities under the National Planning Level should be used as a baseline in the development of future policies.
"Reducing migration should not be at the expense of any one sector, particularly not one as crucial to our economy as education.
"As we head toward the next federal election, our ask is simple - we need to take the politics out of higher education and focus on the national interest that flows from it."
