International student cap to wipe $400 million from Western Sydney University’s bottom line

Caps on international student enrolments proposed by the federal government could wipe $400m in revenue from Western Sydney University’s coffers – and wreak havoc on the region’s health system, the university claims.

Caps on international student enrolments proposed by the federal government could wipe $400 million in revenue from Western Sydney University’s coffers – and wreak havoc on the region’s health system - the university claims.

Modelling undertaken on the university’s behalf has found if new legislated caps are based on 2019 enrolment numbers, as the sector fears, Western Sydney University would lose $400 million over a five-year period.

Vice-Chancellor George Williams is “deeply concerned” about the details that don’t appear in the legislation, with universities and colleges yet to be informed exactly how the caps – which will be tailored to individual institutions and reapplied annually.

The hit to the university’s bottom line would take a toll on equity programs designed to cover fees for low socio-economic and disadvantaged students, he said, and would undercut efforts to establish offshore education, as well as decasualising the uni’s workforce.

“We still don’t understand why we are being punished, when we have a bed for every student and we’re even building 500 more,” he said.

George Williams AO is the new Vice Chancellor of Western Sydney University.

“It’s one thing if you’ve already has the benefit of a large proportion of international students, but Western Sydney University has not, and we’re trying to overcome that equity gap.

“If you take us back five years, that is going to cause a lot of pain.”

Professor Andy Marks, Pro Vice-Chancellor for Strategy at Western Sydney University.

In 2019 there were just under 8000 foreigners studying at WSU, equating to 16 per cent of enrolments. As of 2022, internationals have risen to an 18.5 per cent share of the total student population.

Pro Vice-Chancellor of Strategy and Government Andy Marks said the cap would have an significant impact on local businesses as well as the everyday families who host international students in lucrative homestay arrangements, fearing Western Sydney will be “punished” in the government’s attempts to handle an inner-city housing problem.

“We’re less concerned about our own budget – we’ll find a way to manage that – but it’s our region we’re worried about.”

With 1350 international students enrolled in nursing at WSU as of last year, Marks also raised concerns the cap could worsen Western Sydney’s health workforce crisis.

The region is projected to face a shortfall of 10,000 nurses from 2025.

Caps on international enrolments will be enforced from January next year. Picture: John Feder/The Australian

Federal Education Minister Jason Clare confirmed caps would be introduced from January 1 2025 to maintain a “social licence” for international education, given its position as a “valuable national asset”.

“It’s important to recognise that we are still finalising the details and no university has received their proposed allocation for next year,” he said.

“We are consulting with leaders from the international education sector to make sure we get the design and implementation of these critical reforms right.
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