University of Melbourne to lose $85m under Jason Clare’s proposed international student caps
Australia’s top ranking university is pausing recruitment on vacant positions and reducing discretionary spending after the government proposed to cut its international student enrolments by 18 per cent.
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The University of Melbourne has revealed it will lose approximately $85 million next year if the Australian government’s international student caps are introduced, prompting the tertiary institution to “tighten (its) belts” around spending.
In a letter sent to staff on Monday, acting vice-chancellor Nicola Phillips said the university was pausing recruitment for vacant roles where possible and reducing discretionary spending “in anticipation” of the financial impact of Education Minister Jason Clare’s controversial overseas student cap policy.
The federal government announced last month the number of international students starting courses will be set at 270,000 across both higher education and vocational education courses next year, if its Overseas Students Amendment (Quality and Integrity) Bill is passed by the Senate.
Furthermore, the government revealed on Friday the University of Melbourne would only be allowed to enrol 9300 new overseas students from 2025 onwards – an 18 per cent reduction of new international enrolments.
“In financial terms, this represents a revenue loss of approximately $85 million in 2025 for our institution, with flow on impacts into future years,” Prof Phillips said.
Consequently, the university has implemented a number of “prudent and sensible short-term measures” to cut costs in the lead up to the proposed changes, including reducing spending on non-essential travel, entertainment and other related activities.
It will also reduce or defer spending on external consultants, contractors and other expert services.
“There will be a pause on recruitment for vacant roles where possible, balancing the need to manage costs with making sure the work of the university can continue,” Prof Phillips said.
“In addition, we will introduce a process for additional approval of new appointments and contract extensions.”
But the cost-cutting measures haven’t been welcomed by all, with National Tertiary Education Union University of Melbourne Branch President David Gonzalez arguing the hiring freeze would “push staff to their limits”.
“The acting vice-chancellor explicitly points to a lack of information, yet is rushing into a hiring freeze after zero consultation with staff – the very people who are going to feel the brunt of this decision,” he said.
In a statement, Prof Phillips acknowledged the proposed cap would cause significant damage to the university.
“Our priority now is to get the answers we need from the Australian Government to assess the full implications and share this information with our people and students,” she said.
“The proposal to arbitrarily cap international students at universities puts this position at serious risk – it will harm all students, domestic and international, and jeopardise the sector’s reputation and long-term sustainability.”
Vice-chancellor Duncan Maskell added the university strongly opposed the government’s international student cap proposal.
“It is staggering that we continue to have this debate while there is apparently no serious intent to address really major reform issues,” he said.
Treasurer Tim Pallas said he wrote to federal Education Minister Jason Clare on Friday with a very clear message - “axe the international student caps”.
“A cap on international students is a cap on economic growth,” Mr Pallas said.
“These caps will hurt our state’s economy, lead to skills shortages, and cost us thousands of jobs.
“The Commonwealth government needs to go back to the drawing board and better consult with the state and the sector before it’s too late.”
An inquiry into the bill is currently underway, with the committee expected to make a report on September 16.
Originally published as University of Melbourne to lose $85m under Jason Clare’s proposed international student caps
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