Sandstone universities claim the Coalition cap on foreign students would cost the Go8 $1.2bn

What would the Coalition’s proposed foreign student crackdown cost top universities? Group of Eight chief executive Vicki Thomson has crunched numbers. But some universities are unafraid.

International students protesting against previous visa changes in Melbourne. Picture: Support Network for International Students

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Sandstone universities are forecasting a $1.2bn revenue loss under Coalition plans to limit international student numbers to a quarter of total enrolments.

Group of Eight (Go8) chief executive Vicki Thomson said the federal opposition’s election promise to cap commencing foreign student enrolments to 115,000 a year across all public ­universities was a “folly’’.

She also warned the Coalition’s plan to impose a $5000 non-refundable visa fee for Go8 universities would drive international students away from Australia.

“We already have the highest visa fees in the world,’’ she said.

“The fact is two-thirds of the Go8’s international student cohort are higher degree by research students, and they choose to study at global top 100 universities.

“It’s a folly to think this policy will divert them to other Australian institutions – they will simply choose to study in competitor countries and Australia will miss out on the high-quality international students we need to attract.’’

Group of Eight chief executive Vicki Thomson warns the Coalition policy could cost $1.2bn. Picture: Nikki Short

Foreign students now account for between one third and half of enrolments across the Go8 research-intensive universities of University of Melbourne, Australian National University, University of Sydney, University of Queensland, University of Adelaide, Monash University and University of NSW, and 16 per cent of enrolments at University of Western Australia.

The Coalition’s policy has divided the university sector, with regional universities welcoming the plan to funnel more foreign students into smaller campuses outside the capital cities.

Regional Universities Network chief executive Alec Webb said the 25 per cent cap would not affect most of his members – Charles Sturt University, CQ University, Federation University, Southern Cross University, University of New England, University of Southern Queensland and University of the Sunshine Coast.

But he warned city-based universities might try to recruit more domestic students to qualify for extra fee-paying foreign students.

“The devil is in the detail,’’ he said. “You don’t want to create a system that incentivises the cannibalisation of domestic students so universities can get more inter­national students.’’

University of Canberra vice-chancellor Bill Shorten, a long-time Labor government minister, said his university would benefit from the Coalition policy because international students make up only 21 per cent of enrolments.

“Funnily enough the caps won’t affect us; we could probably lift (numbers), so I’m looking forward to that,’’ he said after addressing staff on Tuesday.

Bill Shorten, vice-chancellor at the University of Canberra.

Mr Shorten revealed more voluntary redundancies, on top of the 190 previously announced, plus a freeze on non-critical recruitment.

He said the university had saved $38m through job cuts but must reduce spending by a further $8m to break even within a year.

Mr Shorten said it was “my 100 per cent intention to have no more forced redundancies’’, but professional staff would be given until April 27 to put their hands up for a voluntary redundancy.

Federation University vice-chancellor Duncan Bentley welcomed the Coalition’s focus on regional and suburban universities. He said his university had already reduced its reliance on foreign students, following the federal government’s ministerial direction to slow visa processing.

“We now have a smaller, in-­demand and highly rated program that directs international students to our regional campuses,’’ Professor Bentley said.

Swinburne University vice-chancellor Pascale Quester blasted both sides of politics for their “continued attacks” on international students.

“The cold truth is we do not have enough Australian high school students interested in pursuing STEM (science, technology, engineering and mathematics) at university,’’ she said. “Forget brain drain – our nation is at serious risk of a brain drought.’’

English Australia warned that the Coalition’s policy of charging international students $2500 to apply for a private training place would “wipe out the English language teaching sector’’.

Chief executive Ian Aird said the planned $5000 fee for Go8 universities would lead to “a market made up almost entirely of wealthy Chinese students’’.