The Australian government is facing an ongoing debate over a proposed cap on foreign student numbers after a controversial bill lost support in parliament.
The bill, part of the government’s plan to reduce immigration, has been rejected by universities, who argue it could damage the higher education sector.
Despite the setback, debate over the policy’s future is expected to continue as uncertainty remains.
The bill, which aims to cap foreign student numbers at 270,000 by 2025, has been strongly opposed by most universities, BBC News reported. These institutions argue the cap will damage the higher education sector and Australia’s global reputation as a place to study.
Universities’ opposition to the bill
The government reportedly proposed the cap to ensure the sustainability of the overseas student industry, while also addressing housing pressures at home. The bill was initially expected to pass easily with support from the opposition. But then Opposition Leader Peter Dutton made a surprising move, with his party opposing the law because it allegedly did not go far enough.
Universities Australia president Luke Sheehy expressed concern that the debate over foreign students would continue even if the bill was defeated. He told BBC News: “All I know is that until this election we’re going to see foreign students [used] become cannon fodder in a fake war on immigration.
The impact on universities and industry.”
The laws, which are expected to slash the number of new foreign students admitted, will come into effect in 2025, according to the BBC. The measure will reduce enrolments by around 70,000 compared to 2024, leading some universities to make precautionary layoffs and reject student applications. As a result, foreign students are choosing to study abroad amid growing uncertainty in the sector.
Despite the apparent relief from some universities at the bill’s current setback, Sheehy noted that the bill does not provide the necessary clarity for the sector. He stressed that uncertainty over foreign student numbers remains a major concern, especially as the sector contributes around A$50 billion to the Australian economy.
Political reaction and the future of the bill
The BBC reports that the bill is currently being considered in the Senate and has not yet been formally withdrawn. However, the bill cannot pass without the support of the opposition Liberal-National Coalition or the Greens. Peter Dutton criticised the bill, calling it a “mess” and vowing to “cut it further” if his coalition wins the upcoming election.
- The Greens also rejected the bill. Its chairman, Adam Bandt, accused the government of using foreign students as a scapegoat for the housing crisis. He said: “It is a dog whistle that shamefully uses foreign students as a scapegoat for a housing crisis they did not cause .”
- In response, the government criticised Dutton’s stance, calling her hypocritical given his previous calls for tighter immigration controls.
With the future of the law uncertain, the government’s current visa policy remains in place. The move has been criticised for directing most foreign students to a small number of universities in cities.
Uncertainty in the higher education sector
While some sectors of the higher education sector welcomed the postponement of the law, reports suggest that overall uncertainty has thrown universities into disarray as the 2025 academic year approaches. Observers predict that some institutions, particularly in rural areas, may face financial difficulties due to the lack of clarity about student enrolments.
“The most damaging thing about this discussion is that we still don’t have a solution,” Sheehy said. “We are no closer to the security, stability and growth that the government promised when it proposed the cap a few months ago.
As the situation remains unclear, the future of Australians remains uncertain.” The international student sector and its role in the national economy remains uncertain.
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