Tens-of-millions of dollars will be dragged out of the NT economy by savage overseas student cuts
A signature Labor Party policy will deliver hammer blow worth a tens-of-million dollar to the NT economy. Read what it is.
Northern Territory
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New figures show that Commonwealth cuts to overseas student visas will slash the Northern Territory’s intake by more than 500 students over two years, in the process dragging tens-of-millions out of the local economy.
In 2024-25 the Commonwealth granted 1768 international student visa places to the NT compared to 2295 in 2022-23, when the current federal measures were not in place.
Assuming student fees of $10,000 a year and consumer spending on rent, food, transport, entertainment and other living expenses of $29,710 – the minimum living expense for overseas students mandated by government – the loss to the NT economy of 527 students would be at least $21 million annually.
Trainers say this does not account for the contribution of international students to the labour market, generating more income for Territory employers and the economy through payroll tax.
In November, the federal government’s legislation to cap overseas student numbers at 270,000 in 2025 because of a southern housing shortage was defeated when the Coalition and Greens blocked the bill in the Senate.
Instead, the Commonwealth enacted a series of measures to slow student numbers including implementing a slowdown trigger in visa processing, more than doubled the non-refundable visa application fee to $1600, a minimum bank account of at least $29,710 and a new student test.
Independent Tertiary Education Council Australia chief executive Felix Pirie said the Territory was needlessly caught up in a one-size-fits-all policy that actually doesn’t fit all.
Representing about 15 colleges and potentially hundreds of students in the NT, Mr Pirie said smaller regional centres like Darwin and the NT would feel the brunt of a policy designed purely for the east coast.
“It’s basically a Canberra designed policy that doesn’t apply equitably in all jurisdictions,” he said.
“In the Territory there has been a significant decline in the number of new student enrolments. That is new students to Australia enrolling in programs in the Territory.
“If you take the Territory’s international skills training sector in 2024, we’re looking at a nearly 54 per cent decline which is also about 31 per cent fewer new student enrolments than the pre-pandemic high.
“So, it’s a massive decline already for the NT but if you look at the national picture, total new student enrolments are about the same as in 2019.
“So nationally, Canberra is looking at trying to get back to pre-pandemic levels, whereas in the Territory they’re just nowhere near those.”
From $710 in July last year, the student visa application cost hit $2000 on July 1, 2025, outpricing students from emerging nations in the region.
As well as impacting industry because of the reduction in potential workforce in service industries such as tourism and hospitality, Mr Pirie said it damaged the NT’s reputation as Australia’s Asian gateway when students from lower-income partner economies like Indonesia, Vietnam and the Philippines look at more affordable alternatives to CDU and the Territory’s quality private providers internationally, like India.
CDU vice chancellor Professor Scott Bowman said the cuts “deeply impacted” the university.
“When caps were initially proposed in 2024, a calculation based on previous commencements and growth was applied unilaterally across all universities,” he said.
“The problem with this application was that it did not consider those universities and jurisdictions, like ours, that need to grow. We do not face the same housing and transport challenges as metropolitan cities.
“The Northern Territory needs more people, and international students are part of the solution. They fill a vital role, filling positions in the tourism, retail and hospitality sectors while studying, and many choose to stay, work, and build their lives here after graduation.”
For the fourth year, the NT News’ annual Future Northern Territory advocacy program returns this month, with workforce and education key content pillars.
Future NT 2025 is supported by major partners Tivan Limited, Charles Darwin University, Tamboran Resources, Santos, Darwin Port and NT Government, minor partners Airport Development Group and Sitzler and supporting partner Mindil Beach Casino Resort.
Tickets are on sale now for the Future NT 2025 economic forum, which will be held at Mindil Beach Casino Resort from 11.30am on Friday, July 18.
Click here for more information and to purchase tickets.
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