Universities warn against Coalition plan to cut foreign student numbers

Foreign students could be targeted under the Coalition's proposed migration crackdown. (ABC News: Brendan Esposito) The university sector is bracing for cuts under a promise by the coalition to cut migration numbers if elected. Angus Taylor has promised to cut net overseas migration to below 200,000 and tie the number to homes built. The opposition says it's consulting on what visa classes would be targeted, but has flagged students would be included. Link copiedShareShare articleUniversities are bracing for foreign student numbers to absorb the bulk of cuts under a Coalition migration plan, with experts warning skilled visas would be difficult to cull. The Coalition has vowed, if elected, to cut back the number of people allowed to move to Australia, tying net overseas migration (NOM) to the number of houses built. While steering clear of revealing a specific target, Angus Taylor has said migrant numbers would be capped at 40 per cent of the current intake, and "well under 200,000". That would mean reducing the number of people entering the country by at least 100,000, based on current migration forecasts. Reaching that target would require cuts to international student numbers and working visa holders, Dr Liz Allen from ANU's Centre for Social Policy Research told the ABC. "They're unlikely to cut holiday makers, they can't do anything about new Zealanders or Australians, they can't do anything about returning permanent migrants," Dr Allen said. Liz Allen says the Coalition's target will likely require cutting foreign student numbers. (Supplied: Liz Allen) The NOM takes into account all arrivals and departures including Australians. For 2024-25 was 306,000 people, while over the same period of time there were 174,752 homes built meaning there were about 1.7 migrants for every extra home. In 2023-24 the NOM was 429,000 and 177,683 homes were built, which equates to 2.4 migrants per new dwelling. The Coalition wants to limit Australia's net migration intake to only one person per new home built, but would wait until in government to decide what visa types to slash if elected. Labor's budget has forecast net overseas migration will be 295,000 in the current 2025-26 financial year, dropping to 245,000 and then 225,000 the year after. The easiest way to cut a large number from the NOM, Dr Allen said, would be significant cuts to foreign student numbers. "Overseas migration comprised [approximately] 150,000 students for one year — you'd have to cut it entirely," Dr Allen said if international students were expected to absorb the bulk of the cuts. "Then there are flow-on impacts, if you cut students then [the Coalition would] have to do other things to ensure sectors don't collapse." Education is among Australia's top five exports, with the international education sector worth about $55 billion. Asked whether the number of international students coming to Australia would be cut, Nationals leader Matt Canavan said "absolutely". "A lot of the pipeline of foreign students that are coming to this country are not really coming here to study. It's become a conduit to citizenship," Mr Canavan said. Large cuts to the number of foreign students allowed would have material impacts on the bottom line for tertiary education providers. Universities have warned they are already absorbing major financial pressure, including falling research funding and rising operating costs. The Morrison government job-ready graduate policy was also continuing to bite, the ABC has been told. Luke Sheehy, who heads Universities Australia, the peak body representing universities, said more upheaval would cause problems for the sector, which needed stability. Luke Sheehy says Australia's university education sector needs stability. (Supplied) "Australia cannot afford another race to the bottom driven by stop-start policy settings, political signalling, or measures that damage our sector, our economy and our global reputation," Mr Sheehy said. "International education is one of Australia's great success stories. "It supports and creates jobs, builds lasting international ties and contributes $55 billion to the economy." Dr Allen said students had a smaller impact on housing take-up than other groups. Universities are required to provide housing if they want to accept more students than their allocated limit. Home Affairs Minister Tony Burke said the government already linked certain migration numbers to housing. "There is an area where we very directly link migration numbers to housing, and that's with respect to overseas students and student housing for institutions," he said. Labor has previously used a "go-slow" method to suppress student numbers, where visa application processing was slowed down once applications reach a target for each university. Beyond students, Dr Allen said workers were the next obvious target to restrict, but she warned that could be fraught. "You're unlikely to be able to effectively

Universities warn against Coalition plan to cut foreign student numbers

Key takeaways

Also covered by

Universities warn against Coalition plan to cut foreign student numbers

Key takeaways

Also covered by

More in international