Universities Australia has warned that the Coalition's proposed cuts to international student numbers - alongside increasing visa fees - would damage the economy and Australia's global reputation, without solving the housing crisis.
"International students contribute over $50 billion to the economy and support more than 250,000 jobs across the country," said Universities Australia CEO Luke Sheehy.
"Slashing student numbers by tens of thousands would take a sledgehammer to one of the nation's biggest income generators.
"International education delivered more than half of Australia's GDP growth in 2023 and almost singlehandedly kept us out of recession."
Mr Sheehy said increasing visa fees for international students would add even more financial pressure, 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."
Mr Sheehy also warned that cutting international students would widen the funding gap left by declining government investment in teaching, research and infrastructure.
"Every dollar from international students is reinvested into the university system. Reducing that income stream will mean less support for Australian students, fewer research breakthroughs and fewer opportunities to grow the skills our economy needs.
"The proposed cuts would worsen existing challenges for universities and compromise Australia's long-term ambitions.
"Curtailing growth in international education puts at risk our national priorities – from research and innovation to skills development and economic growth.
"International student fees help make up for the shortfall in government funding across research, teaching and infrastructure – with every dollar reinvested into the Australian university system.
"Fewer international students means less funding for world-class teaching and research – and fewer opportunities for Australian students," Mr Sheehy said.
"This proposal follows a year of policy chaos that has left universities in a state of uncertainty.
"Our sector has endured a year of disruption and unpredictability. What we need now is certainty and stability so universities can plan, invest and deliver for Australia."
He also cautioned against using international students as scapegoats in the housing debate.
"Students make up less than six per cent of the national rental market. The real solution is more homes, not fewer students.
"We urge all parties to base policy on facts, not finger pointing. We're ready to work constructively on real solutions, but cuts like these will only harm the nation's prosperity at a time we can least afford it.
"Australia's world-class education system has taken decades to build and only moments to unravel. Once students go elsewhere, it's incredibly hard to bring them back.
"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."
