The federal government’s decision to cap international student numbers has now faced resistance from the Victorian Labor government.
Minister for Economic Growth Tim Pallas has called on the Commonwealth to reconsider its planned reforms, stating they “could deliver unintended consequences to the economy and jobs.”
“Victoria is the education state. Victoria holds 30 percent of the national market share of international student enrollments. As our largest export, international students generated $14.8 billion in export revenue in 2023, supporting around 63,000 local jobs,” reads the statement issued by the Victorian government.
On Aug. 27, Education Minister Jason Clare announced capping the new international student intake at 270,000 for the calendar year 2025.
“Subject to the passage of legislation before Parliament, it will set a National Planning Level (NPL) for new international student commencements of 270,000 for the calendar year 2025,” Clare said in a joint statement.
The state government cited an independent analysis prepared by SPP Consulting, which found that by 2027, the caps could cost Victoria 12,000 jobs and $5.9 billion (US$4 billion).
The proposed caps would therefore jeopardise the state’s ability to address local skills shortages and risk damaging the sector’s reputation, the government said.
“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,” Pallas said.
The Victorian government further claimed that Melbourne retained its status as Australia’s best student city, according to global higher education ranking specialist Quacquarelli Symonds (QS). It was also named Australia’s most liveable city in the Economist Intelligence Unit Global Liveability Index, moving up to third in the world rankings.
Universities have also strongly opposed the government’s decision to cap international students.
Victoria’s leading university, Monash, released a statement saying it is working to understand the rationale behind the figure provided and the subsequent implications of the government’s announcement.
“Monash will continue to deliver outstanding educational experiences to all our students, regardless of these proposed restrictions. We will also continue to advocate for policies that recognise the significant contributions international students make to Australia’s academic and broader communities,” a spokesperson told The Epoch Times.
On Aug. 26, during a public hearing before the Senate Committee, representatives from universities across Australia requested the government to reconsider the bill and give it a second thought.
“Six months after Canada imposed caps on student enrollments, actual numbers have dropped significantly below expectations. Universities in Canada reported an average decrease of 40 percent in applications, with some institutions experiencing declines of up to 70 percent. Could we see a similar trend here?” said Ant Bagshaw, Executive Director of the Australian Technology Network of Universities.
