Australian Universities Accord panel considers caps on international student numbers

Head of higher education review says Australia should be thinking about numbers caps and how it could ‘teach jointly with other countries’ in certain subjects.

International students at Brisbane Airport. Picture: Richard Walker

Caps on international student numbers are being canvassed as part of the milestone Australian Universities Accord, as Accord panel chairwoman Mary O’Kane reveals the opportunity to teach more overseas students offshore is “definitely on the table”.

Announced last year by Education Minister Jason Clare, the Accord is reviewing the higher education system and examining topics including funding, affordability, employment conditions and regulation.

Speaking ahead of the release of the interim report at the end of the month, Professor O’Kane said Australia should be thinking more about how it could “teach jointly with other countries on certain topics”.

“One thing Covid taught us, and something that universities have been saying, is that online is possible,” she said. “We might not have done it as well through Covid or with enough sensitivity because we didn’t have time to suit student needs, but … flexible delivery can be great.”

Mr Clare has pointed to the growing opportunities for Australian universities to teach international students online or to open campuses offshore, particularly in countries such as India, which has relaxed regulations on foreign entities operating offshore.

Professor O’Kane said Australia needed to get “much better” at how virtual classrooms were conducted, ensuring they fostered the people-to-people links that were an important part to the international education experience.

“Australia has seen we can do great things in international education,” she said.

“But why can’t we now turn to doing great things in international education that’s got this bigger virtual component?”

Professor Mary O'Kane.

Effectively managing the return of international students following Covid has been a focus of governments around the world. Britain has been looking at restricting the number of international students entering the country.

Professor O’Kane confirmed the Accord was also looking at caps, which some institutions such as the University of Technology Sydney and the Australian National University had considered before Covid. “It’s certainly being discussed.”

This follows increasing concern over universities’ reliance on international student fees before the pandemic, particularly from China. Institutions such as the University of Sydney reported nearly a quarter of its revenue came from international students in 2019.

The Accord – which will hand down its final report to government at year’s end – also will scrutinise how domestic student debts are calculated, taking into account recent increases linked to soaring indexation. “We’re examining it from all angles,” Professor O’Kane said. “This debate is horrible for those who are worried about it, but in a way it’s been useful for the review because it’s highlighting the issues so well.”

The government has come under fire for not intervening last month after the 7.1 per cent indexation rate hit three million students and graduates with HECS debts, with calls for an overhaul of the way such debts are calculated.

Professor O’Kane said incentivising students to do degrees in sectors where there was the most demand would be needed into the future but the Job-ready Graduates package, which doubled the cost of degrees where there was the least demand, had not worked.