Election 2025: Bipartisan blast as universities cry foul over foreign student cuts

As Labor and the Coalition pledge to slash migration, Universities Australia warns it is ‘crazy’ to cut revenue from foreign students.

International students are an issue in federal election campaign as both sides of politics promise to reduce numbers. Photo: John. Feder

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Cash-strapped universities have accused both sides of politics of a “race to the bottom’’ in slashing international student numbers.

Universities Australia chief executive Luke Sheehy said the Coalition was “stoking anger in the electorate’’ while Labor was “caving in to protect its vote’’.

“It’s officially a race to the bottom,’’ he told the Independent Tertiary Education Council conference in Adelaide on Wed­nesday. “Both sides (are) deferring blame for their own domestic policy failures in office.

“The Coalition had been beating this drum for months, blaming international students for driving up (rental) prices and locking Australians out of the market.

“We know from polling that migration and housing are hot-button issues. Cue Labor’s knee-jerk response, and in one fell swoop, international students became scapegoats for Australia’s housing crisis.’’

Universities Australia chief executive Luke Sheehy has called for an end to ‘chaos’ over international students.

The federal government is relying on a ministerial directive to slow the processing of student visas, after the Coalition tor­pedoed Labor’s legislation last November to cap numbers at 270,000.

Peter Dutton has promised even deeper cuts, but has failed to explain how many foreign students would be allowed into Australia, or how a Coalition government would manage enrolments based on nationality, institutions or destinations.

Mr Sheehy said if the Coalition froze foreign student numbers at 2023 levels, universities would have to shed nearly 55,000 international students. “Imagine torching $4bn in revenue at a time our economy and our sector can least afford it,’’ he said.

“International education is our nation’s biggest export outside of mining. It generates $52bn each year, it pays for essential services, it supports 250,000 Australian jobs, it funds vital university research and it subsidises the education of Australian students.

“That’s why it’s crazy to even think of curtailing this vitally important sector, particularly now.’’

Mr Sheehy said international students accounted for just 6 per cent of the national rental market.

Housing shortages have stoked concerns about high numbers of temporary migrants, including international students.

He said both major parties had encouraged the growth in international students for more than a decade, and went to “great lengths’’ to encourage their return after the Covid-19 pandemic.

“Universities, on average, bank around $30,000 per international student enrolled,’’ he said.

“Universities have grown heavily reliant on this revenue to cover commonwealth funding gaps. That’s money that helps fund teaching for Aussie students and research. Both major parties are biting the hand that helps fund our sector.’’

Mr Sheehy said he had sought a meeting with the federal Opposition Leader to explain his plans.

Coalition campaign headquarters would not tell The Australian whether Mr Dutton would make time to meet Mr Sheehy.

The Australian revealed on Wednesday that the number of student visa applications halved in January this year, compared to last year, with applications in February similar across both years.