Jason Clare scraps controversial student visa ministerial direction

Education Minister Jason Clare has axed a ministerial direction that prioritises student visa applications from ‘low risk’ institutions.

Education Minister Jason Clare. Picture: NewsWire / Martin Ollman

The Albanese government has scrapped a controversial ministerial direction that prioritises student visa applications from “low risk” institutions, following a backlash from the sector that the measure disadvantaged regional universities.

The new Ministerial Direction 111 will be tied to the caps that each university was given as part of the government’s failed student caps legislation, as foreshadowed by The Australian.

The decision to axe the direction comes after the Coalition blocked the government’s bid to legislate caps on international students to 270,000 in the parliament.

Home Affairs Minister Tony Burke said legislation would have been the “best option” but “this option will still allow us to use one of the biggest levers in our migration system”.

“Peter Dutton wants to talk tough on migration but has voted to let it rip when it comes to international students – this is a counterbalance to his recklessness,” he said.

Education Minister Jason Clare said the new ministerial direction would “strengthen our ability to manage the flow of international students, and better support regional education providers”.

“It shouldn’t just be the big inner-city unis that benefit from international education. TAFEs, regional and suburban unis should benefit too, and this new approach will help us do that,” he said.

Mr Clare wrote to some university vice chancellors on Wednesday evening telling them ministerial direction 107 would be replaced by a direction that makes the “existing system better and fairer”.

“I write to advise you that the government will replace ministerial direction 107 with a new ministerial direction based on feedback from the sector to make the existing system better and fairer,” Mr Clare wrote.

Sources familiar with Ministerial Direction 111 said the government will now process visas for all institutions on an equal basis up to 80 per cent of the student cap previously allocated by the government under the failed legislation, also known as their Net Overseas Student Commencement number.

Once the institution has met 80 per cent of its new student allocation, the institution will be moved to the back of the queue, behind other universities that have not yet met 80 per cent of their capped number.

The sector is eager to be on a more secure footing ahead of the new academic year.

The government briefed education sector leaders late on Wednesday about the replacement of direction 107, which stakeholders believe will effectively impose the levels allocated to providers under the shelved international student caps.

Mr Clare had vowed direction 107, which he refers to as a “de facto cap”, would remain in place while the legislation remains blocked in the parliament.

Direction 107 was introduced by ousted home affairs minister Clare O’Neil a year ago in a bid to curb net migration amid a surge in international student numbers after the pandemic.

The direction prioritises the processing of visa applications from students with an offer from a university with a lower risk rating, such as the Group of Eight universities.

The approach has been criticised from the sector for placing regional and outer suburban universities at a disadvantage, and has seen international enrolments at sandstone universities soar.

Universities Australia chief executive Luke Sheehy has repeatedly called on the government to axe Direction 107, criticising the crackdown on international students for ripping $4bn out of the economy, costing jobs and damaging the sector’s reputation.

After the government announced $2.5bn in funding for its higher education reforms, Mr Sheehy renewed his attacks on Direction 107 calling for its removal.

“Certainty and stability are now urgently needed to ensure its continued growth and global competitiveness,” he said.

“International education is not just an economic powerhouse – it’s a lifeline for the nation’s budget and for communities across the country.

“The removal of ministerial direction 107 is critical to stabilising international student numbers, restoring confidence and ensuring Australia remains competitive on the global stage.

“Higher education is the backbone of Australia’s future. By driving reform and working together we can build a stronger, fairer system that supports every Australian to reach their potential.”