‘Not problems to be capped’: NSW treasurer defends international students

NSW Treasurer Daniel Mookhey says international students are “economic assets to be treasured” and should not be subjected to visa caps, warning unscrupulous operators in the vocational sector risked damaging the reputation of higher education in Australia.

Mookhey praised the federal government’s efforts to crack down on shonky education providers but said international students should not be viewed as “a problem to be capped”.

NSW Treasurer Daniel Mookhey says international students will always remain key to the state’s economy.Credit: Oscar Colman

The federal government last year announced plans to limit international student numbers after it faced acute political pressure to reduce overall migration amid a cost-of-living crunch.

While the NSW treasurer stopped short of criticising his federal counterparts, Mookhey stressed that overseas students remain crucial to the state’s economy, with international education NSW’s second-biggest export after coal.

The government estimates international education contributed $17.9 billion a year to the state economy in 2023.

“I would encourage everyone to see [international students] as economic assets to be treasured, not as a problem to be capped,” Mookhey told the Herald in an exclusive interview.

Treasurer Daniel Mookhey says NSW is attracting the brightest and best international students.Credit: Sam Mooy

“I think that our world-class universities are an immense economic asset to NSW. That is the reason why we are seeing an explosion in emerging tech in Sydney.

“We have a good synergy between our universities, our tech sector, and ... a lot of the world’s best and most ambitious students want to come here to learn their craft.”

The caps for each university, tabled at a Senate committee hearing in September but blocked by the Coalition, limited Sydney University to 11,900 international students, down from 12,790 in 2023.

University of NSW – the hardest hit in NSW – was limited to 9500 students, down from 11,075. Western Sydney University was limited to 3400, down from 3461.

Business groups and universities have warned that capping overseas student numbers could inflict lasting economic damage on a major export industry.

Mookhey said NSW Treasury advice was that the cap would be unlikely to cause a “massive disturbance” to the state’s economy in the short to medium term.

“But in the long term, we do want our universities with the best settings available for them to thrive and their ability to continue to attract international students, dare I say, is good for them, but it’s also good for the wider NSW economy.”

He said the federal government was “doing a good job of cracking down” on sections of the international education sector “that are actually harming Australia’s reputation”.

“That should allow us to be arguing for NSW universities to effectively be taking that space,” he said.

Along with tuition fees, spending by overseas students supports thousands of jobs in hospitality and retail trade. International students are also an important source of labour.

Peak body Business NSW has warned that limiting the overseas student intake will harm the state’s reputation as an international education provider and cost the economy billions of dollars.

The Group of Eight, which represents Australia’s biggest universities, has warned that restricting student visa approvals will create confusion in the international education market.

The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.