The Business Council says the Government’s decision to place caps on the number of international students permitted at each university will damage the economy and deliver long-lasting economic harm to Australia’s fourth largest export sector.
BCA Chief Executive Bran Black said the decision to apply arbitrary caps would limit growth of a major sector at a time when the economy is stalling.
“These caps will damage the economy, reduce economic growth and create long lasting negative impacts to our fourth largest export,” Mr Black said.
“International students are worth $48 billion to our economy and in March 2024 accounted for almost a quarter of GDP growth — so it seems entirely counterproductive to stymie that growth when we face economic headwinds.”
“I’m disappointed the Government is intent upon implementing such a blunt mechanism that will dent our capacity to drive research and result in course cancellations for domestic students.”
Mr Black noted the decision will have unintended consequences, including as to how it will impact students who have already accepted enrolments.
“Many international students have already accepted enrolments at Australian universities and will have to be turned away following this decision, which will cause long-term damage to our reputation as a sought-after destination for international education,” Mr Black said.
Mr Black highlighted the debate around student caps has been unfairly linked to housing affordability in Australia.
“The debate around student caps has been a knee jerk reaction to a housing crisis that has come about from poor planning and a lack of coordination across all levels of government,” Mr Black said.
The BCA is pleased that Higher Degrees by Research are not included in the cap and that course level caps have not appeared in the initial decision.
The BCA will continue to engage with Government to achieve a model which works towards a sustainable solution in providing top tier education for both domestic and international students.
Source: BCA
