Coalition floats foreign student flat caps, as election looms

Universities could be forced to reduce the number of foreign students to a percentage of their total student numbers, under a range of proposals floated by the Coalition.

Opposition Leader Peter Dutton. Picture: Tony Gough

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Universities could be forced to reduce the number of foreign students to a percentage of their total numbers or below overseas enrolments in a previous year, under a range of proposals floated by the Coalition in its election bid to slash migration.

The Australian understands Peter Dutton’s frontbench has consulted the higher education sector on alternative models to cut back on international students, including capping overseas enrolments to 30 or 35 per cent of a university’s students.

Ahead of the May election and next week’s federal budget, the Coalition has canvassed other models to curb overseas students, including enforcing a certain percentage limit below the number of international students enrolled in a previous year.

After the Coalition torpedoed Labor’s legislation capping international students to 270,000 in November over concerns the framework was “chaotic and confused”, the Opposition Leader has stated his intention to pursue steeper caps if elected.

Amid concern that soaring temporary migration has put ­pressure on the housing market, the Coalition has vowed to target metropolitan universities, especially in Sydney and Melbourne, with “tougher” student caps, while seeking to bolster the number of foreign students at ­regional providers.

Mr Dutton said the Coalition would release further details of its immigration policy before the budget on Tuesday, accusing Labor of approving a million new arrivals to come to Australia over two years.

“We need to have a well-managed program, and the housing crisis that Anthony ­Albanese is creating has just meant that the dream for young Australians has been lost, and I’m going to restore that dream,” he said.

The prospect of a percentage-based limit on international ­students – potentially between 20 and 40 per cent – has raised questions within the sector on whether the flat cap will apply to each course or faculty, or to each university overall.

Higher education expert ­Andrew Norton said the model could bring balance to the ratio of domestic and international students in classrooms, while ­hitting universities with the _largest proportion of foreign students.

“One implication is, depending on the phase-in, some universities would have to rapidly decrease numbers, which I guess they might be doing anyway, but I think that could cause problems,” Professor Norton said.

“And I think if we take it down to the faculty level, even though ideally you want to get balance, that may also cause problems in the sense that international students tend to do management, commerce, IT and engineering qualifications. Therefore, you’re not going to get an even spread across the university of inter­national students.”

The issue of caps emerged as new Australian Bureau of Statistics figures released on Tuesday revealed the number of student visa holders arriving in the country jumped from 80,830 in January to a provisional estimate of 201,490 last month, which would be the highest for any month on record. The net increase in foreign students in February was 170,470 after allowing for departures.

The Australian Technology Network of Universities in July floated a proposal for a flat cap on international students of total enrolments. The peak body for technical institutions estimated that the model would see the Group of Eight universities shed about 20,000 international students. The University of Sydney would suffer most, shedding nearly 10,000 international students.

Opposition education spokeswoman Sarah Henderson said the Coalition’s approach would be measured and responsible while ensuring regional providers were not “unfairly disadvantaged”. “That’s why we have flagged a tougher, more effective cap on international students – one that will rein in excessive numbers in our overburdened capital cities, particularly Melbourne and Sydney, where two-thirds of foreign students live and study,” she said.

The sector remains concerned about the use of “blunt ­instruments” to reduce inter­national students, with providers warning that cutting students would damage the economy and the reputation of the nation’s second biggest export sector.

Some have also voiced concerns the percentage flat cap model would give bigger universities an incentive to ramp up recruitment of domestic students to allow them to continue recruiting foreign students.

After the Coalition announced it would join the Greens in voting against the student cap legislation, Education Minister Jason Clare said a ministerial direction prioritising how student visas are processed would remain as a “de facto cap”.

The measure, criticised by the sector for benefiting elite, metropolitan universities deemed “low risk” over regional providers, was later replaced.

Former Immigration Department deputy secretary Abul Rizvi said a 35 per cent flat cap made more sense than negotiating a cap with every provider, but introducing an exam for international students would be a more effective way to reduce numbers.

Mr Dutton said on Tuesday he was considering taking a referendum on deporting criminal dual nationals to the election to “keep our country safe”. The Prime Minister dismissed the proposal as a “thought bubble from Peter ­Dutton that hasn’t made it to lunchtime”.