Victoria wants special treatment over foreign student caps

Victoria says it should be treated differently to NSW and other states over the capping of international students numbers because of the damage done to the state’s economy by the pandemic.

The Victorian state government, which has joined NSW and South Australia in criticising the federal plan to cap intake, said it should be buffered by a “no significant disadvantage” principle imposed when the foreign student limits come into force as its enrolments are still 7 per cent below what they were in 2019.

Victorian Premier Jacinta Allan, whose government wants a ‘no disadvantage test’ over international student caps.Credit: Justin McManus

“Victoria wouldn’t be Victoria without its international students,” the state says in its submission to a parliamentary inquiry into the Albanese government’s legislation to help reduce net overseas migration to 260,000 by next July amid a heated political debate over temporary arrivals.

“International students help address the state’s workforce needs and contribute through entrepreneurship and start-up ventures, as well as critical research areas.”

Research commissioned by the University of Melbourne and Monash University found that having 30,000 fewer foreign enrolments at the state’s eight public universities could cost the state $5.9 billion and at least 12,000 jobs by 2027.

The state said it had not recovered from the pandemic as quickly as other jurisdictions, who, except for Tasmania, had all surpassed their 2019 enrolment levels last year.

“When considering implementation of the proposed changes, the Australian government should
consider a principle of no significant disadvantage for any jurisdiction relative to others,” the submission says.

“The Australian government should also take the impacts of the COVID-19 pandemic into account, including jurisdictions’ varying recovery trajectories.”

Migration is shaping up as a key battlefront in the lead-up to the federal election. Labor and the Coalition have adopted tough stances over the number of temporary arrivals, whom they are linking to the debate over housing affordability.

Earlier this year, NSW and South Australia told federal Labor its push to drive down international student numbers risked damaging Australia’s international reputation and its economic standing.

“An excessive reduction in student numbers will have significant negative consequences for the economy, including job losses, labour shortages, constrained business environment, reduced tourism activity and research output,” NSW Trade Minister Anoulack Chanthivong and Tertiary Education Minister Steve Whan wrote to federal ministers in May.

The Department of Home Affairs said it didn’t currently have capacity to give effect to the changes.

Education Minister Jason Clare’s office declined to comment on Victoria’s submission when contacted, but the minister has previously said he is consulting the sector and affected parties over the changes.

During the introduction of the legislation to parliament in May, Clare told parliament: “We have to ensure that we manage the international education industry in a way that delivers the greatest benefit to Australia, whilst maintaining its social licence from the Australian people.”

The Victorian government also said that while it backed the need to restore integrity to international education following revelations it was used as a back door to low-paid work, it said the aim of restoring social licence to the sector could backfire by targeting it as a whole.

“The actions of a few education providers and unscrupulous actors in the sector should not be seen as a broader reflection of how the sector operates,” it said.