Canberra’s student visa cuts could hit Territory hard

There are serious Territory implications from federal plans to dramatically cut international student numbers. Read the potential impacts.

Federal plans to slash Australia’s international student intake could have far-reaching, unintended consequences. key industry figures have warned.

Territory trainers and educators facing a massive hit on overseas enrolments are worried at the impact immigration visa cuts flagged by both Labor and the Coalition could have on the NT economy, particularly around workforce.

The operator of an NT-based training company which this month graduated more than 90 hospitality students – all of whom are employed in Top End businesses – warned of the potential for labour shortages if cuts were made.

And Charles Darwin University vice-chancellor Professor Scott Bowman, who will travel to Canberra next week to discuss the changes, said lower overseas student numbers could whack the university’s bottom line and mean reduced uptake for the university’s CBD campus, which should open later this year.

CDU Vice Chancellor Scott Bowman. Picture: Sierra Haigh

“The NT requires net overseas migration, and we do not have the same living and transport challenges as our metropolitan counterparts,” Professor Bowman said. “We rely on international students both when they are studying, and if they choose to stay and work in the Territory.”

He said students were “essential members” of the Territory’s workforce, especially in the tourism and hospitality industries.

“The retention of students within the NT once qualified allows industry to fill identified shortages in critical areas such as healthcare and education,” he said.

“During study and beyond, students are active and engaged members of Darwin’s thriving multicultural society, advocating for and showcasing our community to their friends and families worldwide.”

In 2023, CDU hosted about 3600 international students, with 3150 of those in Darwin. Professor Bowman said the Territory’s higher education enrolments were less than one per cent of Australia’s total and the NT’s international enrolments were less than half-of-one per cent of Australia’s total.

Professor Bowman said the changes could hit the university’s bottom line and the economic viability of the new CBD campus.

He said to achieve the Territory government’s 2030 goal of 10,000 international students, government agencies and CDU invested $250m into the CBD campus.

International College of Advanced Education chief executive Sean Mahoney.

He said it was anticipated most students at the new campus would be international students.

“We are currently undertaking modelling to understand any impacts a reduction in international students may have,” he said. “We will post a deficit for 2023, but our forecasts had the university returning to surplus in 2024-2025. Any reduction in international student numbers would make delivering a surplus very difficult.

Sean Mahoney, chief executive of International College of Advanced Education, oversaw a graduation of more than 90 students last week at the school’s Rapid Creek campus, all of whom are currently employed in the Territory’s hospitality sector.

Another 100 students, many of whom also have jobs, were not involved in the graduation.

“It’s very concerning the government is taking this very negative approach to what is a very positive industry that only brings benefits to the community,” Mr Mahoney said. “The policy changes are reactive to a perceived problem that is of their own creation. The policy changes are like taking a sledgehammer to an egg.

“If this government policy is implemented I would anticipate there’s going to be labour shortages in the hospitality industry and other sectors this Dry Season, and it will certainly bite next season.”