2. The value of international students to Australia

Overview

2.1International students are highly valued in Australia for the economic, social and diplomatic contributions they make whilst studying with Australian education providers.

2.2This chapter discusses evidence that recognises the much broader contribution of international student fees, towards a broader recognition of international students to Australia than the often-singular focus on international student fees and economic impacts. This is a contribution that harnesses the sectors social license to contribute to a multicultural and harmonious learning environment in which domestic and international students can thrive.

2.3The Department of Education reflected that the ‘Australian Strategy for International education 2021-2030 focuses on providing international students with a positive and holistic Australian experience. This includes charting a pathway to sustainable growth for Australia’s international education sector, with a focus on diversification, meeting national skills needs, and students at the centre and global competitiveness.[1]

2.4Over the course of the inquiry the Committee discussed with stakeholders how the broader value of international education can build a more sustainable and connected approach to international education that recognises and understands the benefits of positive soft power strategies.

2.5Issues of fragmentation and internal competition between states, territories and competing education providers became clear, with Austrade recognising this fragmentation issue had created duplication and confusion and was a risk to Australia’s unified brand.[2]

2.6The national face of international education promotion, Study Australia had less funding than most states for the promotion of international education, and Study Australia’s budget is a small fraction of what Australia’s main competitor countries investment was into national strategies for international education promotion.

2.7Issues of a lack of diversification in student markets and a reliance of student fees to fund research arose in evidence pointing to a potential vulnerability of Australia’s research capacity to outside market forces and geostrategic change, and to the stability of the international education sector as a whole.

Economic value of international students

2.8Prior to the impacts of the COVID pandemic, international students contributed almost $40 billion in export value making it Australia’s largest services export.[3] $16 billion of the export value of international education in the form of fee revenue paid to institutions with the remaining $24 billion (or 60 per cent) directed to other areas of the economy, including flows to local businesses through spending on accommodation, transport, retail, food, and other costs.[4]

2.9Australian Chamber of Commerce and Industry (ACCI) argued that the broader economic benefits of international education could not be over emphasised. ACCI pointed out that for every one-dollar universities collected in tuition fees there is another two dollars generated through other activity associated with international students.[5] ACCI shared that in 2018 international education supported around 250,000 jobs in Australia and stressed the importance on international students as consumers, especially in regional Australia.[6]

2.10International Student Education Agents Association (ISEAA) highlighted the connection between international tourism and education pointing to students as tourism consumers, the revenue of visiting friends and family and through edu‑tourism visitors.[7] The presence of international students in regional universities is of value to international tourism activity in those areas which are outside of the traditional international tourist destinations. With international students as tourism consumers themselves, their word-of-mouth recommendations and their visiting friends and families playing significant role in drawing international tourism to lesser-known regional areas.

2.11Similarly, Charles Sturt University (CSU) discussed the significant benefits to the community that international students make, whether that be supporting employment or supporting industries such as tourism, where CSU acknowledges there exists a strong connection between international study, visits and tourism dollars through visiting friends and family.[8]

2.12Echoing the strong connection between international education and tourism, English Australia highlighted that:

• Education-related personal travel is more valuable than other personal and business travel in Australia overall, as well as in NSW, VIC, SA, TAS and ACT.
• Education visitors account for over 38 per cent of the total tourism spend in Australia and 57 per cent of travel exports spend, 8.5 times more than other visitors stay.
• On top of this, one in four education visitors have friends or family visit the country resulting in $1.1 billion in 2018.
• In 2018, the Chinese spend in Australia by education visitors was larger than the total spend by all visitors from the US and UK combined.[9]
  13. As an example, the Victorian Government offered that in Victoria alone, international education makes a significant contribution to the state’s visitor economy. Pre-pandemic (2019), international education visitors accounted for 46 per cent of all international visitor expenditure in Victoria and contributed to the visiting friends and relatives (VFR) segment. According to Tourism Research Australia, in 2017, one in seven VFR travellers reported visiting a student or relative studying in Australia.[10]

Source: Austrade Submission[11]

Visitor Types and Value by cohort, year-end 2019 (Tourism Research Australia (TRA), International and National Visitor Surveys, 2020; Australian Bureau of Statistics (ABS), Australian System of National Accounts, 2020)

2.14Austrade noted at the public hearing on 16 May 2023 that international education generates 69 per cent of international tourism spend in Australia. They elaborated that ‘without international education, we effectively have an international tourism sector one-third its current size—or its regular size’.[12] Other stakeholders had contested this figure, suggesting that it depended on how the data was dissected and analysed.

2.15Correcting that the statistic is more accurately 68 per cent, Austrade clarified that this percentage represents the total international student expenditure in the 2019 calendar year, including students here for less than 12 months and more than 12 months, as a proportion of total international visitor spend. Comparatively, the proportion of expenditure in Australia by international students here for less than 12 months of the total international visitor expenditure was 39 per cent. Austrade explained that the way in which the data is analysed depends on the definition of visitor in the context of the visitor economy:

International students here for less than 12 months are counted as part of the visitor economy and, while students in Australia for longer than 12 months are not technically counted as visitors for the purposes of the visitor economy definition, THRIVE 2030, the national strategy for Australia’s visitor economy, makes clear that the targets set for the recovery and sustainable growth of the sector include spend by international students here for more than 12 months. Many of the spend patterns of short-term and long-term students are similar and naturally international students undertake tourism activities while they are staying in Australia.[13]

Regional Australia – Education and Skills

2.16Universities Australia highlighted how international students make significant contributions to their communities, and this is particularly the case for those who study in regional Australia.[14] Universities Australia urged that in any consideration on changes to post study work rights in the future, retaining a differential factor in the post study work rights for students who study at an Australia institution in a regional area would be favourable and would continue to support these critical flows of students to the regions.[15]

2.17La Trobe University (La Trobe) commended the fact that international education and tourism sectors are being considered in tandem pointing to an Austrade Report in 2018, showing the spend in Australia by education visitors from China was larger than the total spend by all visitors from the US and the UK combined.[16] La Trobe strongly recommended maintaining and strengthening the incentives for international students to study in regional Australia. La Trobe believed that the policy has been successful and has the potential to aid the recovery of both sectors.[17]

2.18La Trobe pointed to migration settings that affords students studying at regional campuses access to more preferential post-study working rights has been especially successful:

Our experience as a university with several regional campuses has been overwhelmingly positive in this regard, with our campus in Bendigo attracting a significant increase in the number of international students so that a regional community now benefits from ten per cent of our entire international cohort (prior to the introduction of this setting it was just one per cent).[18]

2.19Regional University Network (RUN) considered that there is a more acute prevalence of critical skills shortages across many key industries in regional Australia, as compared to metropolitan Australia. RUN gave the following health services example; 2020 Health Workforce data shows 531 full time equivalent (FTE) allied health clinicians per 100,000 people in major cities compared to 414 FTE allied health clinicians per 100,000 people in outer regional locations.[19]

2.20RUN submitted that similar disparities in manifests disproportionately across many industries that are key to regional Australia’s continued prosperity. They argued for consideration to the broader issues confronting regional Australia, international students who choose to study in, and subsequently settle within regional communities’ post-graduation, play an important role in suppressing regional Australia’s education divide with metropolitan Australia and addressing key regional skill shortages.[20]

2.21RUN believed there is a strong case for regional Australia hosting a greater share of the international student cohort, and for regional Australia welcoming a greater proportion of those international students who choose to remain in Australia post-graduation. Regional Australia and RUN would therefore value and benefit from any opportunity to welcome more international students, including those who eventually graduate from regional university campuses into regional workforces.[21]

2.22To ensure regional Australia benefits from the contributions of international students, the Department of Education administers the Destination Australia Program, with annual funding of $19.47 million, which supports domestic and international students to undertake study in regional areas. The fourth round opened on 11 October 2022[22]and supported 480 students with scholarship funding of up to $15,000 per year, per student, commencing in the 2023 academic year. Successful applicants of this round were distributed across 27 providers and 83 campuses in regional parts of Australia.[23]

2.23Currently only four per cent of all international student are in regional Australia. Recognising chronic skills needs, particularly in parts of regional Australia, the 2023 round gave preference to applications supporting students who study courses aligned with the Government’s National Skills priority list.[24]

2.24The 2024 round of the Destination Australia program offers scholarships of up to $15,000 per student, per year to approximately 551 domestic and international students, who will be commencing their studies in 2024.[25]

Social license

2.25The Group of Eight Universities (Go8) noted that while export revenue is unarguably important and represents a key pillar of Australia’s higher education funding model, they strongly advocated for recognition of the broader benefits of international education engagement which go beyond monetary value, to the heart of the sector’s social license to operate that is built on community understanding and support.[26]

2.26Independent Higher Education Australia (IHEA) emphasised the importance of international education as a strategic enabler that improves social cohesion and helps to address some of the contemporary challenges Australia is facing associated with an aging workforce, slowing population growth and weak productivity growth.[27]

2.27The Committee heard that social license is fundamentally important to the success of Australia's international education industry and, more importantly, to the experience of our international students. The international education sector has the potential to support Australian businesses and organisations to meet the needs of an increasingly multicultural population.[28]

2.28Social licence is important both for international reputation and domestic sentiment. International students must not be seen as simply profit-making ventures nor solutions to labour shortages. They must be viewed as valuable contributors to universities and the communities in which they live.[29]

2.29Innovative Research Universities (IRU), suggested ‘It can be done by reframing the discourse from one of purely economic benefit to focus on the overall societal and cultural benefit of international education for communities right across Australia.’[30]

2.30Austrade advised that to operate as a sector, social license in Australia is something that constantly needs consideration. In Austrade’s view communications to the Australian community are something that could be better coordinated by government, but by all stakeholders, including the peak bodies.[33] A view concurred by Griffith University who assert that social licence is fundamentally important to the success of Australia's international education industry and, more importantly, to the experience of our international students. The international education sector has the potential to support Australian businesses and organisations to meet the needs of an increasingly multicultural population, as well as providing significant employment and revenue for a range of providers and organisations and directly contributing to the tourism industry both as employees and through the visitor economy created by friends and family who travel here.[34]

2.31The Council of Australian Postgraduate Association and National Aboriginal and Torres Strait Islander Postgraduate Association considered universities are a gateway for international students to bring a range of different perspectives, life experiences and cultures to the classroom, which can enrich the learning experience for all students.[35] International student feedback indicates an appetite for increased connections with the Australian community, which mitigate social isolation.[36] Student experience is improved through enriching experiences off campus, including internships, employer networks and graduate opportunities and increased knowledge of complaints handling mechanism when students experience discrimination.[37]

2.32Deakin University explained the importance of developing connection programs, including the coordination between education providers, professional organisations and community organisations in order to create opportunities for international students to volunteer and to participate in community programs.[38] Deakin gave an example of having an international student representative at a council or local council meeting or at a cultural diversity day or harmony day to connect them with the local community which would simultaneously raise local community awareness of their contribution to Australia educationally, culturally, socially, politically, and economically.[39]

2.33Go8 suggested that the Government and the sector should instead work with community groups to emphasise the benefits that a healthy international education sector bring, not least of which are the opportunities they provide to Australian students to develop their own inter-cultural understanding and knowledge.[40] A key challenge for all stakeholders in Australian international education is to facilitate meaningful engagement between domestic and international students, and promote integration within institutions, the community and industry sectors.[41]

Future markets and strong competition

2.34Competition is intense from the ‘traditional’ competitor countries such as the United States of America (USA), United Kingdom (UK) and Canada who are moving more aggressively into the southern hemisphere.[42] There are new competitors which used to be seen as source countries, such as the United Arab Emirates (UAE) who offer a 'golden visa'[43] allowing a 10-year residency to the best and brightest international students from ranked universities.

2.35Navitas commented that we are in a hyper- competitive period when it comes to international education:

… possibly the most competitive period that we've ever been in. When we surveyed just over a hundred international education leaders from universities across the UK, Australia and Canada, pretty much all of them said that competition was going to be higher, if not much higher, than what it was compared to the pre-pandemic period.[44]

2.36Study Perth observed that the recovery speed of the international education sector ‘is directly impacted by the Commonwealth government's visa-processing’ for the VET and ELICOS sectors and believed that this is additionally impacting Australia’s competitiveness in comparison to other countries, such as Canada and the UK.[45]

2.37The Australian Catholic University (ACU) suggested education technology or ‘EdTech’ is flourishing, with global venture capital investment into edtech doubling between 2018 and 2020. Linked-In Learning, EdX, Google and Amazon have become fierce competition, offering professional accreditation that are pushed to be industry recognised. These alternatives provide students with the opportunity to receive a certificate from a well-known brand but are often more affordable (or even free in some cases), accessible from anywhere in the world and can be completed in a shorter amount of time.[46]

2.38Dynamic changes underway in the region will continue to drive the region’s economies offering Australia significant opportunities and challenges. Asia overall stands to deliver nearly two-thirds of global growth to 2030.[47]Within the next 15 years, four of the world’s five biggest economies in purchasing power parity terms are likely to be in Asia: China, India, Japan, and Indonesia. China and India together make up more than 60 per cent of Asia’s economic activity.[48]

2.39This economic powerhouse has significant implications for Australia’s international education sector as a stronger middle class emerges in the region will seek out the best education on offer.As regions grow economically, in-country establishment and investment in education will result in-country university and centres of learning gaining prestige.

2.40Source countries investment and development of their own 'home-grown' education offerings will be gaining inroads into student's choice of provider. Students will be able to choose to stay in their own countries and achieve globally competitive qualifications. This presents an emerging competitive challenge for the Australian international education sector.

2.41Southeast Asia’s rapid economic development and the growth of alternative education markets has meant that Australia is losing relative advantage as a destination for future leaders from the region.

The region itself is producing higher quality universities. Students in South-East Asia are choosing to stay at home and study in their top universities, especially those who, at the margins, are thinking about an international education or a good private education in a local institution. It's not just the international providers that Australia is competing with; we're competing against high-quality emerging institutions, because South-East Asia is becoming richer. As the region becomes richer, the competitive landscape for all of us is changing.[49]

2.42Independent analysis conducted for Austrade forecasts that traditional international education experiences (onshore, on-campus, face to face) will continue to be sought after by students in dominant source markets.[50] However, the continued success of the traditional model will be highly dependent on conducive and competitive student visa and post study work rights policy settings, perceptions of value for money, access to employment opportunities while studying, and relevant, meaningful graduate employment outcomes.[51]

2.43IDP Education pointed to post-study work rights as a key battleground and that although Australia is in the lead at present, this will change.[52] Navitas calling it a post-study work rights race with every country is trying to offer more. Navitas raised that while Australia does offer generous post-study work rights, student experience of those post-study work rights was very poor, especially when compared to domestic students. That promise that Australia makes of a great post-study, work-right experience, immersion in the job market and relevant work, Australia is not adequately delivering on that to all students The Committee and studies by Professor Ly Tran and others have come to the same conclusion.[53]

2.44Navitas cautioned however that Australia should not be relying on post-study work rights, or on any government policy to make the Australian education product attractive; it must stack up on its own. If the international education sector is relying on policy to drive the student choice, then perhaps the value proposition is not right.[54]

Marketing the sector within Australia

2.45The Committee was interested to hear from witnesses whether Austrade needed more resources. IHEA commented that:

While Austrade has brand Australia for study, the move to state-based delivery has fractured the collective sale of Australian education overseas.[55]

2.46University of Adelaide argued that Australian education providers, states and territories in competition with each other leads to significant wastage of marketing spend. A whole-of-sector approach could be considered, with government support to encourage collaboration between education providers and industries to provide more opportunities to students.[56]

2.47Murdoch University called for recruitment initiatives that support all universities and facilitate student enrolment outside the major urban centres. Regional authorities are keen to work with agencies to strengthen enrolments; build social diversity; provide in-study, Work Integrated Learning, and post-study work opportunities; and encourage appropriate migration pathways in areas of workforce shortfalls. These goals are currently hampered by a lack of consistency in application of various policies in respect to international education and recruitment of international students.[57] This view was echoed by Independent Tertiary Education Council Australia (ITECA) who identify a lack of consistency across the Australian Government with respect to international education policy and programs with no over-arching coordination mechanism.[58]

2.48Study Perth considered that all are competing at an institutional level and state level, but at an Australia level we are competing with Canada, the USA and the UK. Study Perth argued that institutions aren't big enough, nor are states big enough, in marketing speak, to get above the line. There needs to be at a whole-of-country level to get the above-the-line marketing awareness.[59]

A National Brand

2.49Austrade promotes a nation brand and uses this brand as a vehicle for promoting everything Australian. By operating under a national brand, Austrade argue Australia gets the benefit and the amplification of why choose Australia, and what value proposition the nation brings to the world. Education or Study Australia is a subsector within this bigger brand.[60]

2.50Study Australia is allocated just under $6 million annually for dedicated education staff located in 36 locations around the world, a small specialist team in Australia, the Study Australia website and digital and social media outreach for global promotion of Australian education and training, including a marketing portal for providers and education agents. An additional $2 million was allocated in this budget year to redevelop for user experience on mobiles, including ten foreign languages.[61]

2.51Study Australia’s budget is extremely modest given the direct revenue and soft power influences potential of international education for Australia. International education revenue (including students here under 12 months and over 12 months) generates sixty-eight per cent of international tourism spend in Australia.[62]

2.52According to the Australian Universities International Directors Forum Benchmarking International Operations 2019 prior to COVID universities re-invested on average 0.93% of international student tuition fee revenue into marketing and recruitment per annum. This excluded staffing, but included travel, digital marketing, physical marketing, exhibitions, freight and overseas offices/staff. If the average tuition fee income per university was $269.1 million in 2019, each university, on average would spend $2.5 million per annum on marketing and recruitment.[63]

I think it's important, we spend more at an Australian level, yes—that we spend not just on focusing on the Study Australia partnership but on making sure the Study Australia partnership leverages up the other activity as well. To give you an idea of orders of magnitude in the Western Australian context, the budget for StudyPerth is a couple of million dollars and the budget for Tourism WA is over $100 million. There's a big difference between how much money is spent in the tourism and hospitality space compared to the international education space.[64]

2.53ITECA’s submission argued that previous efforts at developing and delivering national strategies have provided broad direction for the sector, but such efforts have lacked a cohesiveness in terms of being able to bring together all agencies (at a federal, state and territory level) in a way that fully appreciates the disparate nature of the architecture within which the sector operates. ITECA considers that there is no effective coordination of the agencies across governments that are involved in international education, even at the Commonwealth level.[65]

2.54La Trobe’s experience is that there is no coordinated response across government departments to the international education sector. La Trobe believed there is scope for a greater joined-up approach which includes skills, education and migration operating in tandem. It is La Trobe’s view is that competitor nations such as Canada have the edge on Australia in this realm.[66]

2.55The Department of Foreign Affairs and Trade (DFAT) considered that a 'team Australia' approach makes an enormous difference, particularly in South-East Asia. That coordination, in terms of a Commonwealth-state-territory government perspective, avoiding fragmentation and presenting a cohesive front will make Australia more competitive.[67]

2.56Tourism Australia spent $57.7 million in advertising and research in 2021/22, Austrade’s marketing spend for international education for the same year (2021/22) was $6,883,923.[68]

2.57States and territories generally undertake destination marketing activities which have dual benefits for both tourism and attracting international students. Victoria, New South Wales and Queensland have trade commissioners in various offshore locations who contribute to their state’s trade and investment activities. In some cases, such as Study Perth and Study Adelaide, it is the member institutions that contribute funding, in addition to government contributions.

2.58New South Wales committed in 2022 $19.1 million over 4 years for destination marketing and to improve the student experience (including internships and sports programs). Queensland in the same year announced $20.6 million to support the State’s 5 years roadmap to drive the post-pandemic recovery of International Education and Training (IET) exports. Western Australia in 2023 announced $13.1 million investment international education for international student support (including student grants) and destination marketing. This brings Western Australia’s total spend on international education to $75 million over 4 years.[69]

Comparing Australia’s investment in marketing

2.59Australia’s spend on international education marketing is approx. $6 million (an additional $2 million was allocated in this budget year for a special project) in comparison with competitor countries, the United Kingdom and Canada, this is a tiny amount.[70]

United Kingdom

2.60The British Council, established in 1934, is the United Kingdom’s international organisation for cultural relations and educational opportunities. It is a charity governed by Royal Charter and a UK public body. It has 12,000 staff across 100 locations around the world. In FY 21/22 the British Council spent £175 million (approx. AUD $335 million) on encouraging educational cooperation and promotion the advancement of education.[71]

2.61Marketing and promotion education initiatives in the United Kingdom (UK) are funded by the British Council and the Department for International Trade. The UK’s International Education Strategy has two goals to achieve by 2030 to increase education exports to £35 billion per year (approx. AUD $67 billion) and to increase the numbers of international higher education students studying in the UK to 600,000 per year. These goals have already been exceeded.[72]

Canada

2.62In 2019, the Canadian Government announced a new international education strategy backed by government investment of CDN$147.9 million (approx. AUD$165 million) over five years, starting in 2019–20, with a further CDN$8.0 million (approx. AUD$9 million) per year, ongoing. The strategy included approximately $24.1 million (AUD$27m) of funding for a targeted digital marketing strategy to attract students from a diverse range of markets.[73]

2.63To support efforts to diversify into new markets, the Canadian strategy included approximately $4.9 million (approx. AUD$ 5.4 million) supplemental over 5 years and $1 million (AUD $1.12 million) ongoing towards supporting the Trade Commissioner Service to intensify its efforts to grow and diversify Canada’s international education sector.[74] Canada revenue from international education is approximately AUD$34 billion in 2019).[75]

Diversification and sustainability

2.64Australian international education providers are currently dependent on a small number of markets for the majority of international student enrolments in Australia. China, India and Nepal combined make up over 50 per cent of all student visa holders. There are significant risks for providers who are overly dependent on a small number of student source markets.[76]

2.65The Department of Education set out how the COVID-19 pandemic revealed the reliance some institutions have on a small number of countries when sourcing international students.[77] The top five student source markets (China, India, Nepal, Vietnam and Colombia) represented 59 per cent of enrolments across the international education sector in 2021 and the two largest countries alone made up almost half of all international enrolments. This figure is even higher in public universities, with the top five student source markets representing 72 per cent of international enrolments in 2021, with the largest source market, representing almost half of all international enrolments.[78]

2.66Nine universities in Australia now account for 53 per cent of commencing overseas students in 2020, compared to 2019 where a similar proportion of students was distributed across 15 universities.[79] This higher concentration of students is at odds with the Australian International Education Strategy 2021-2030, which emphasises the criticality of diversification in the sector’s recovery and mitigation against market shocks and minimisation of risk.

2.67Prior to the COVID-19 pandemic, Australia’s international education sector had enjoyed a period of strong growth, with the sector experiencing a 72 per cent enrolment growth over 2011 to the year-end 2019.[80] Despite this, during this time, relatively little thought was given to the strategic opportunities for diversification, to external risks and threats and to the sustainability of the sector.[81]

2.68UNSW considered that the diversification of the international student market will support sector recovery by helping to manage any risks associated with source market concentration.[82] It will help to solidify relationships with a wider range of emerging strategic and economic partners. UNSW encouraged the Australian Government to continue to assist the sector with diversification by hosting trade missions and supporting marketing and promotion of Australian education to develop new markets of international students.[83]

Latin America, Africa, Southeast Asia

2.69DFAT considered international education is a key element of many of Australia’s bilateral relationships in Latin America.[84] Australia is seen as a high quality and more cost reasonable option than some US institutions. Brazil and Colombia are the largest markets, consistently ranking in the top 10 countries with students in Australia. Australia needs to continue to invest in Brazil to strengthen relationships and better define the brand. Permanent residents and student cohorts, including those on working holiday programs, generate visitor visas demand from families and friends which helps our tourism industry. In Colombia, where our market share is low but consistent, DFAT intend to build on the bilateral Memorandum of Understanding on education and training signed in March 2022.[85]

2.70The Victorian Government is extending the sector’s global footprint through established physical Study Melbourne Hubs in China, Vietnam and Malaysia, a hybrid hub in South Asia, and a pop-up hub for key student engagement activities in Latin America. The hubs offer a dynamic space free of charge for Victorian education providers, agents, education advisors and students to connect, including access to Study Melbourne programs delivered virtually.[86]

2.71University Of Canberra (UC) are increasing investment in Vietnam, the Philippines, Indonesia and diversifying our source channels across South Asia, with a particular focus on Bangladesh and Sri Lanka. UC are assessing opportunities for increasing market share in developing markets including Pakistan, North and Central Asia, Africa and Oceania.[87]

2.72Griffith University observed that there are many markets within Africa where Australia has not traditionally recruited large numbers of international students, but are aware that the UK, the US, Canada and other global study providers recruit good quality students.[88] Griffith University placed put an in-market representative into Kenya in 2022 to better support recruitment agents and grow the market. As a result, Griffith University have seen a significant increase in demand from Kenya and other parts of West Africa with many studying in non-traditional fields such as social work.[89]

2.73However, Griffith University noted that because these are new markets, the rate of visa rejections may be higher than in more accepted source countries such as China. Griffith University asked are there not opportunities and possibilities for Australia to think about some key countries in the African region and accept that it is going to come with a degree of visa risk and not necessarily reject out of hand.[90]

2.74DFAT identified opportunities for Australian institutions to provide high quality education to the growing, urbanising population in a number of African countries.[91] Since 2004, more than 2,200 students from African countries have studied in Australia through the Australia Awards scholarship program.[92] African countries are a relatively small source markets for international students – accounting for approximately 10,000 students in August 2022. The largest source African countries are Kenya (more than 3,000 students) and Nigeria (approximately 2,000 students).[93]

2.75For Latin America, Brazil and Colombia are the largest markets, consistently ranking in the top 10 countries with students in Australia.[94] DFAT considered that Australia needs to continue to invest in Brazil to strengthen relationships and better define the brand. Permanent residents and student cohorts, including those on working holiday programs, generate visitor visas demand from families and friends which helps our tourism industry. In Colombia, where Australia’s market share is low but consistent, the Government intends to build on the bilateral Memorandum of Understanding on education and training signed in March 2022.[95]

2.76Deepening engagement with Southeast Asia is a key commitment of Government across all sectors. The Government has commissioned a Southeast Asia Economic Strategy to 2040.[96] The Strategy will set out a pathway to strengthen Australia’s economic engagement with the region by mapping emerging trade and investment opportunities. International education and tourism will be addressed in the Strategy, in recognition of their value to partner countries in the region and ASEAN. In November 2022, over 85,000 (around 18 per cent) of Australia’s student visa holders were from Southeast Asia, with Vietnam, Thailand, Philippines and Indonesia in Australia’s list of top 10 education export markets.[97]

Expanding Australia’s education market

2.77Austrade has dedicated education trade staff in 36 locations globally. Some markets are considered particularly important for the growth of the international education sector including India, China and Southeast Asia (especially Indonesia, Vietnam, Thailand, Philippines). [98]

2.78Austrade considered that there is an opportunity for Australia to diversify more proactively into emerging different markets. Given the unique characteristics of each market, success requires investment in product and market development and promotion appropriate to those characteristics, while improving understanding of the markets. Austrade considers the following markets have potential for a team Australia approach in the following areas:

• Colombia – Vocational Education and Training (VET), English Language Intensive Courses for Overseas Students (ELICOS)
• Brazil – VET Skills Training, ELICOS
• Bangladesh – Higher Education, Transnational Education (TNE) Pathways, TNE •
• Pakistan – Higher Education
• Saudi Arabia – Higher Education, VET Skills Training
  79. Austrade is watching and researching Kenya regarding the potential for Higher Education and TNE Pathway offerings. Austrade identify countries with potential based on the following factors:
• Austrade or Australian Government presence in the markets,
• competitor activity,
• potential for growth for Australian education and training including study in Australia,
• transnational education (online, in-country delivery) and transnational education pathways, and skills training, and
• access to data to inform strategy development.[99]
  80. Diversification is not limited to geographic markets. Diversification of the type of courses and the mode of delivery could help to reduce the vulnerability of Australia’s international education sector to market shocks such as future pandemic and border closure disruptions, geopolitical change and economic change such as higher costs of living. global and national recessions that may drive students to choose shorter courses, or in mixed modes of delivery (partially offshore, partially onshore) to save costs.
  81. Griffith University argued that there is a danger that we have become too reliant as a sector on two main markets—China and India. Although Griffith University prides itself in having a comparatively diverse international cohort, there is sector‐wide agreement on the need for further diversification. This requires the government to balance the risks‐based approach to visas with a more flexible model that allows leeway for universities to open to new markets with appropriate due diligence but recognition that some higher level of risk is acceptable for a period of time as such markets mature.[100]
  82. Austrade works with providers to identify new markets and segments, and to diversify product offerings through customised client services for high potential education exporters (mostly Australian universities to date). The promotion of diverse fields of study can reduce sector reliance on dominant disciplines and courses, and profile Australia’s wide range strengths and capabilities in education, training and research.[101]
  83. Promoting fields of study that align with Australia’s skills needs, and those of students’ home countries, can help to diversify our campuses and classrooms, support Australia’s visitor and national economy, help prepare students for graduate success and grow Australia’s popularity as a study destination and partner.[102]
  84. With improved market access and favourable policy settings, opportunities exist for Australian education providers to establish new models of transnational education or offshore campuses while contributing to social and economic development outcomes in the region.[103]

The international education sector connects communities, industry, strategic partners and people across the world; however, it is fallible and requires innovative ideas, effective measures and positive experience to ensure it continues to deliver to its full potential for the university sector and the country. …There are opportunities for further collaboration with government and industry to regrow the sector through positive international student experiences and strategic and foreign policy setting adjustments.[104]

Potential marketing funding models

2.85Austrade proposed a range of funding models that could enable enhanced and united Australian education marketing and promotions activity. These would build on and extend structures –including the Study Australia Partnership that already exist.[107]

2.86States and territories could contribute to a joint education marketing fund which promotes Australian education and Australia as a destination via an agreed formula. This joint marketing fund could build on the governance structures and activities established through the Study Australia Partnership. The approach could enable Australia to compete, grow and defend market share in a hyper competitive environment in a more unfired and stronger position to the benefit of all stakeholders.[108]

2.87A marketing and promotions levy could be collected from CRICOS registered Australian education providers. This could be based on the New Zealand Export Education Levy (EEL)[109] and based on a percentage of international student fees (as captured in PRISMS).

2.88Austrade noted that levy implementation and management is an extensive administrative exercise and equity issues across sub sectors and locations will have to be carefully managed. A levy may not be welcomed by all parts of the sector on the principles of affordability, misalignment with recovery trajectories and administration burdens.[110]

Diplomacy and foreign policy

2.89The Committee received evidence that called for a revaluation of international education’s role in Australia’s soft power strategies to advance its interests in the region and internationally. DFAT commented:

At a time of changing geopolitical circumstances, we need a whole-of-government, whole-of-nation effort to respond to the challenges and opportunities of a changing region. A competitive and resilient international education sector advances our national interests.[111]

2.90International education is a national asset for Australia’s strategic and foreign policy interests harnessing Australia's capacity to influence other countries in the region and internationally.[112] Education exchange builds influence and strengthens people-to-people links contributing to mutual understanding and enhancing mutual co-operation.[113] DFAT cautioned that Australia needs to harness these connections better to deepen partnerships with the region.

We can't take our past successes as an education partner of choice in the region over recent decades for granted. To maximise the benefits that Australia's tertiary sector can bring to foreign policy priorities, all partners in the sector need to be nimble, modern and closely attuned to strategic developments across the region.[114]

2.91Go8 explained that Australia’s international education sector is far more integral to national success and wellbeing and security than is often recognised.[115] The Go8 asserts that international education is not only able to support strategic and foreign policy objectives, but that it can be viewed as a key supporting pillar in helping to build and maintain multi-lateral alliances across the globe and importantly in the Indo-Pacific region, including ASEAN and Island nations.[116]

2.92DFAT impressed upon the Committee that Australia's future is tied to the region. Two-thirds of the world's population live in the region, with all nations represented in the rich cultural diaspora of the Australian community.[117] International students and international education build long-term relationships contributing to shared values for a stable and prosperous Indo-Pacific. At a time of changing geopolitical circumstances, Australia needs a whole-of-government, whole-of-nation effort to respond to the challenges and opportunities of a changing region.[118]

2.93The Australian Government engagement in multilateral fora, such as the G20 and APEC is helping enable Australia to build a strong education reputation internationally and increase market access.[119] This engagement includes the UNESCO Global Convention on the Recognition of Qualifications concerning Higher Education (the Global Convention), to encourage qualification recognition best principles and practices by overseas governments.[120]

2.94Bilateral undertakings by the Australian Government are opening up possibilities. On 2 May 2022, the Indian University Grants Commission (UGC) gazetted regulations that will allow Indian and foreign universities, including Australian universities, to offer twinning, joint and dual degrees.[121] The Australian and Vietnamese Government have recently completed the Australia-Vietnam Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) online delivery pilot project that will support Australia to further its transnational education relationship with Vietnam. The project led to Vietnam permitting online/blended delivery of higher education courses by Vietnamese universities with a foreign partner.[122]

2.95State and territory governments and individual providers in the sector benefit from national agreements such as the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) and the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), supporting the global reach of state and territory education and training ecosystem is set to further expand and its influence deepen.[123]

Southeast Asia and the Pacific

2.96Southeast Asia is home to a growing, youthful, and dynamic cohort of markets. Collectively, trade with ASEAN accounts for more than 14 per cent of Australia’s overall trade and the region is a significant consumer of Australia’s education offerings.[124]

2.97Education has been central to Australia’s ties with Southeast Asia, creating people-to-people connections and supporting human capacity building in the region. Australia’s Southeast Asia Economic Strategy to 2040[125] will set out opportunities for Australia to bolster Australia’s engagement with the region, guided and promoted by the Special Envoy for Southeast Asia. DFAT informed the committee that Australia is expanding soft power influence through revitalised international scholarships and mobility programs, including to boost Asia literacy and capability in Australia.[126]

2.98Centres for research excellence such as the University of Sydney’s Sydney Southeast Asia Centre offers leadership programs to cultivate high-impact leaders across Southeast Asia and help form the basis of strong Australian education engagement in the region.[127] In 2018, the University of Queensland (UQ) worked with partner organisations to design a customised leadership and management training program for fisheries leaders in the Pacific.[128]

2.99These kinds of regional engagement by the Australian education sector offers significant social benefits and builds a more resilient region which is a critical part of Australia’s economic prosperity. DFAT commented:

Education and people-to-people ties add ballast to our relationships and connect us to our region. There are significant opportunities to expand the reach and depth of education partnerships, inbound and outbound, over coming decades, especially in the Pacific and South-East Asia, where Australia's interests are most closely engaged.[129]

2.100The Australian Government and higher education institutions are actively rebuilding connections to the region and exploring opportunities to develop new tertiary partnerships and pathways for Pacific students to access education opportunities in Australia.[130]

2.101DFAT highlighted future opportunities to deepen linkages between Australian and Pacific education systems and agencies including building on the success of existing partnerships such as ‘the Australian Council of Education Research (ACER) with the Pacific’s Educational Quality Assessment program; the Australian Skills Quality Authority’s work with USP; and Australian curriculum licencing arrangements with schools in New Caledonia, Nauru and Papua New Guinea.’[131]

2.102The Pacific Australia Labour Mobility (PALM) scheme utilises ongoing education and pathways for Pacific students. DFAT describe two small but successful PALM pilots with Pacific partners in Queensland and the Northern Territory for on-the-job training for a Certificate III in individual support in the aged-care sector. One directly with a registered training organisation (RTO) in the Northern Territory where students undertake a full course onshore while working on the job. In the second Queensland pilot students undertake theory offshore and then come onshore into an aged-care placement to undertake the practicum component. These projects blend Australian skills shortage objectives with international-led co-operation and foreign policy objectives in the Pacific.[132]

2.103DFAT expanded on the Australia Awards distinctive feature of support for students in country, before they come to Australia, during their time in Australia and returning through the program. The current Australia Awards include a dedicated Australia Awards Pacific and Australia Awards PNG scholarship program.[133]

The value of research

2.104Research partnerships that are strategic and sustainable value add through innovation and cooperation bringing together regional expertise and capability to tackle mutual challenges such as climate change. Most Australian universities have collaborative partnerships with international universities and centres, many of which are founded and maintained through the efforts of individual researchers and academics. Pre-pandemic, international higher degree research candidates made up over 36 per cent of total graduate research enrolments, contributing to the value of research graduates to the nation’s innovation agenda and economy through research and development outputs.[134]

2.105The Australia Council of Graduate Research (ACGR) commented that impactful international research collaborations are often supported by or initiated through the establishment of joint or dual PhD programs where candidates work with universities or supervisors from across the world.[135] ACGR highlighted the importance in engaging in and growing these types of research education programs.[136] International research training is critical part of Australia’s responsibility to support academic capacity building for developing countries. ACGR recommended consideration be given to new funding to support mobility/engagement efforts, and increased promotion and coordination of this profiling through Austrade or similar.[137]

2.106Through research collaboration in areas of mutual benefit, staff and student mobility, or joint training programs, the sector promotes not only Australia’s education and research credentials but builds networks of recognition and support on multiple tiers from nation to nation, institution to institution and people-to-people building shared values and innovative collaborations to tackle global and regional problems.[138]

2.107The Study Melbourne Research Partnerships Program is a $3.6 million[139] initiative driving fifteen strategic joint research projects between Victorian institutions and their international partners (in the region and internationally). The program helped establish new institutional partnerships and deepened existing collaborations across key priority areas, including renewable energy, artificial intelligence, social inclusion.[140]

2.108ACGR highlighted the value of International Higher Research by Degree (HDR) students to Australia. It has high rates of timely completion of their degrees and, often, prodigious research outputs. ACGR considered that these global scholars are critical to the cementing current research collaborations and supporting emerging areas of research and innovation. HDR candidates often contribute to the teaching workforce of Australian universities demonstrating the diversity and international character of Australian institutions and enhancing the experiences of earlier-stage students.[141]

The case for alumni and scholarships

2.109The international student journey does not end at graduation. A positive student experience increases the potential of alumni to recommend Australia to future students, to deepen Australia’s ties with the world, and creates enduring people to people linkages, knowledge exchanges and business and research partnerships.[142] Foreign government and business leaders, including heads of state, ministers, and CEOs, have studied in Australia and have a better understanding of, and connection to, Australia’s institutions, values, and perspective on the world.[143]

2.110International alumni of education programs in Australia, whether supported by scholarship or full fee-paying programs are leaders in the region with experience of Australian education, society and values.[144] Alumni networks can provide an avenue to connect to leaders and strengthen Australia’s soft power and people-to-people links and cross-cultural competencies.[145]

2.111The Global Tracer Facility data showed that Australia Awards Alumni contribute across all Sustainable Development Goals, with highest contributions in education, gender equality and health and wellbeing.[146] Global Tracer data pointed to the importance of students building professional and personal connections while in Australia leading to engaged alumni with lasting links to Australia.[147]

2.112When it comes to the experience that students have at overseas campuses and their evolution into alumni, the Lowy Institute considered that there is little that is really known whether they are developing an enduring connection to Australia that will be valuable in terms of Australia’s foreign policy influence objectives, soft power in the region, or whether that attachment is primarily to the institution at which they have studied rather than to Australia as a country. It is something that Australia needs to be mindful of transnational education as an opportunity but is something that could come at a cost in some cases.[148]

2.113Investment in alumni remains a key factor in quality outcomes for Australia. The Government in recognising this is reinstating the Australia Awards Fellowships program to engage with Australia Awards alumni’s established leaders as well as younger students.[149]

2.114DFAT highlighted the benefits of Australia’s legacy of more than two and half million international students who studied in Australia in the past 50 years, including through Australian scholarship programs dating back to the Colombo Plan. As a result, many foreign government and business leaders have studied in Australia and understand Australian institutions, values and perspectives on the world.[150]

2.115With 100,000 Australia Awards alumni and around 35,000 New Colombo Plan (NCP) alumni, Australian government funded scholarships are a significant asset to maintain Australian influence in an increasingly competitive region.[151]

2.116The Queensland Government supported the Australian Government continuing the NCP as one of the foundation programs to build life-long ‘ambassadors’ for Australia and recognises that international education is not just one-way.[152]

State alumni engagement

2.117University of Sydney shared a positive example of alumni working well:

This year, the University of Sydney celebrates 100 years since admitting the first international student to study in Australia. He was from Wuhan, China. More than 75,000 international students later, many of our alumni remain friends of the university, and indeed of Australia, through the business, government and personal connections developed during their time with us. Possibly the most famous foundation story at our university is the cohort of nine students who came to Sydney to study with us in 1979, at the end of the Cultural Revolution. Known as the Sydney Nine, these students were invited by Dame Leonie Kramer, then head of the English department, to study English literature, linguistics and Australian culture. They returned to China and established six centres for Australian studies at home. Today there are 35 of these centres in China, and they play an important role in the ongoing dialogue between our cultures.[153]

2.118The Queensland Government expanded on their intent to ramp up the Global Friends of Queensland, and position working with Queensland’s alumni as a key initiative in Queensland’s revised 2022 Trade and Investment Strategy. In their view Queensland’s alumni will play a role in future marketing efforts to provide personal testimonials as to the quality and employability prospects of its international educative offering.[154]

2.119The University of Adelaide leveraged alumni networks to facilitate meaningful connection between Alumni and international students during challenging times through their Career Mentoring Program.[155]

2.120The Victorian Government investment recognises the value of alumni with an extensive Trade and Investment Network of 23 offices located in cities around the world. The network is committed to building global connections now and in the long-term, including working with Victoria’s international alumni.[156]

2.121International education should sit at the heart of Australia’s policy objectives to foster stronger partnerships and alliances, strengthen Australia’s standing globally, and build a more resilient economy.[157]

2.122However, witnesses drew attention to the often fragmented, under used and under analysed value of international students and graduates for soft power. Under Study Australia, Austrade have four quadrants of activity; connection, inclusion, belonging and ambassadorship, yet are not tasked formally with the alumni part of the sector.[158]

2.123The Lowy Institute observed that while education has been a central pillar in Australia's engagement with South-East Asia since the era of the Colombo Plan and that the network of Australian alumni in the region is arguably our greatest soft power asset, despite this, Australia has not maintained its edge in educating the future leaders of the region.This is especially the case from the more developed ASEAN countries, such as Malaysia and Thailand.[159]

2.124The Lowy Institute contend that students have many more options about where to study these days, and generally Australian institutions lack the prestige of top destinations in the UK or the US, or the scale of scholarship offerings available from Japan, China and other countries. There are already today fewer Australian alumni in top ministerial jobs in Indonesia and Singapore, for example, than there were 10 years ago.[160]

2.125Following the scrapping of the deeply flawed Endeavour scholarship[161], Australia does not have a scholarship which sets out uniquely to identify future leaders and educate them in Australia, because that has not been a sustained objective in Australian policy. That means it has not something that has been measured in a concerted way. The evidence is much more anecdotal. Australia currently does not have a systematic evaluation of how effective Australia is being in educating future leaders.[162]

2.126The Lowy Institute suggested that there is a large gap in Australia’s current suite of international scholarship offerings because there is nothing to attract scholars to Australia outside the Official Development Assistant-eligible countries of the Australia Awards program, and nothing to encourage high-achieving Australian postgraduates to extend their horizons overseas.[163]

2.127As with Dr Joanne Barker’s evidence, the Lowy Institute drew attention to conflicting objectives of Australian programs:

I think one observation I would make is that, because the Australia Awards have multiple objectives as a scholarship program—and this is a point which has been made in DFAT's own evaluation of the Australia Awards—at times there can be conflict between development objectives and the objective of picking the topmost competitive student in a given field.[164]

2.128DFAT was mindful regarding Australian institutions offshore that there is a lack of robust research about what the impact of study at these Australian institutions based overseas is on the connection to Australia.

2.129Lowy Institute considered that Australian policy and international education strategies have largely focused on the basic economic advantages to Australia of international student revenue and not as much on the questions of soft power, foreign policy, or influence.

2.130In their view Australia’s scholarship programs, which are a key lever of government policy, have not kept pace with this more competitive environment and this has been to Australia's detriment in terms of foreign policy and relationships with the countries of South-East Asia.The question around soft power and future leaders, has become a lot harder over recent decades because access to higher education throughout South-East Asia, has proliferated. In the early part of the Colombo Plan, it was possible to support someone to gain a PhD who was then highly likely to become a future leader of their country. That is no longer the case.[165]

Committee Comment

2.131While the interconnected nature of international education and tourism is evident, the Committee heard conflicting data from different stakeholders around how much of international education also generates international tourism spend in Australia. The Committee understands that this is largely dependent on how the data is analysed. Despite this, it remains clear that international education has a substantial impact on the tourism sector, including through travel undertaken by international students as well as their visiting family and friends.

2.132As a study destination, Australia is an appealing country of choice due to its stable democracy, vibrant multicultural society, relatively strong economy, attractive and safe lifestyle, and world-class educational institutions. Australia’s geographic location in the southern hemisphere has disadvantages in cost of flights and travel but holds a key advantage of being closer to home in comparable time zones for southern hemisphere students than northern hemisphere competitors.

2.133The Committee is convinced by evidence received that, above all else, there are two key factors that will drive Australia’s future success in international education: (1) a ruthless focus on ensuring all students receive a quality education (2) a positive student and graduate experience. These objectives are critical if Australia is to remain an international high value educational choice, strengthen cultural capital within Australian communities through domestic and international student interactions, and create a stable pipeline targeted to fill skilled occupations in demand with well-educated graduates.

2.134These two objectives are also key if Australia is to realise the broader ‘soft power’ and foreign policy objectives that can continue to be achieved if Australian trained alumni assume leadership roles in foreign governments and industry. Further, the Committee agrees that the international education sector plays an important role in directly advancing Australia’s interests in stable and prosperous Indo-Pacific and Blue Pacific[166] regions. However, more can and should be done to leverage the real potential of alumni and mature relationships into strategic international partnerships.

2.135The Committee is concerned by evidence, discussed later in the report, that far too much focus has been on growth in aggregate student numbers at the expense of a focus on quality and a positive student experience. The Committee’s findings and recommendations aim to restore a greater focus on quality, and this may (and probably should in some parts of the sector) come at the expense of chasing growth in overall student numbers. Put simply, sustainable growth means Australia must more deliberately pursue “quality over quantity”. This may mean tough decisions to cut back on lower quality students, especially in the lower end of the private VET market, and focus on market development and recruitment of high-quality students.

2.136Australia may need to consider diversification into new education markets as an option to chase quality and reduce dependence and preserve against market shocks. This could include diversifying into new markets [in regions such as] Southeast Asia, South America and Africa and consider innovative approaches for education delivery in existing markets. The Committee heard evidence that higher education institutions in Western Australia collectively attract international students from countries different to those in other Australian jurisdictions.[167] For example, some of the universities present at the public hearing in Freemantle identified Bhutan as emerging source market, from which they are attracting a large number of international students.[168] The Committee acknowledges that, overall, the diversification of source markets will not be easy as in many places there are established competitors and no first mover advantage for Australia. However, evidence suggests that sustained and focused effort over a number of years can pay dividends.

2.137Diversification is a priority of the Australian Strategy for International Education 2021-2030 and is an important tool to strengthen business resilience across the international education sector and to maintain competitiveness. Diversification is not just about attracting students from a range of countries. It means:

• delivering education in new ways and exploring new models of offshore education, including online delivery and industry partnerships
• diversifying where international students study in Australia, by attracting more students to regional education institutions
• diversifying the disciplines international students choose to student, beyond popular management/commerce and STEM courses, and
• sharing Australia's expertise in education policy, curriculum design and systems development internationally.
  138. More focused and coordinated effort is needed to strengthen Australia’s marketing positioning as an exporter of quality education, more investment in international education and a whole-of-government approach is required to promote to traditional source countries more effectively and widen out to new markets.
  139. The Committee is concerned that a concentration of a small number of source markets for international students makes Australia’s international sector vulnerable to market shocks and geopolitical disruption. That said, the Committee is realistic that market diversification is not easy, and it is a fact that there are two very large countries in our region – China and India – and a healthy market will continue to host large proportions of quality students from these partner nations. However market diversification must remain a central pillar in the Government’s strategy for international education with more specific focus on attracting quality students from a number of countries in a coordinated ‘Team Australia’ Market Diversification Plan with shared resourcing from governments and the sector.
  140. The Committee acknowledges that a peculiar feature of Australia’s higher education system is that universities have been forced to have a substantial reliance on international student fees to fund research. The Committee is concerned that given the volatility of the international student market and its susceptibility to outside forces this reliance represents a vulnerability in Australia’s capability to advance research, development, and technological innovation for the country’s future. The Committee contends that this is a key issue that Government should consider through the University Accord process so that Australia's research capabilities are less captive to the outside market forces and risks an over reliance on international student revenue to fund the research so critical to our way of life, economic success and university rankings (that in turn impact the recruitment of high-quality students).
  141. The Committee is persuaded by the overwhelming evidence that marketing effort in Australia is far too fragmented as compared to comparable jurisdictions. There is a clear lack of cross Government sector in support of agreed strategies for market development and seriously insufficient funding to effectively promote international education on a national level. The Commonwealth has for many years spent far more promoting the (smaller) general tourism sector than international education which is the largest single source of foreign tourists. Many universities and most States and Territories spend far more than the Commonwealth in promoting study in Australia. The Committee’s first recommendation is for a far more collaborative approach across Australian Government agencies and especially states and territories and the sector to overcome currently fragmented, duplicative and internally competitive approaches to market.
  142. The Committee considers that a more unified national international education approach from marketing through to delivery has significant value in strengthening Australia’s capacity to leverage Australian education to support Australia’s foreign policy objectives in the region and internationally. In addition, the Committee considers that an effective evaluation of programs and review of experiences from alumni and international student should be regularly reported.
  143. The Committee considers that quantifying the outcomes and actual value of Australia Awards, New Colombo and other similar education programs needs a more joined up approach so that the effectiveness of such scholarships and programs can be strategically understood and mapped as a whole landscape which includes Government (Federal, state and territory) and the sector.
  144. In order to achieve a unified and consistent national brand the Government needs to work with state and territories and leading education providers to reduce the competitive race for the student dollar and invest in more collaborative approached to marketing Australian education and address the significant fragmentation, duplication and confusion.
  145. The Committee is persuaded that a more unified approach would more effectively promote Australian education internationally but may also better combat student exploitation and fraudulent practices in the sector. This really is critical to maintaining the social license of the sector amongst the community and supporting Australia’s reputation as a high-quality education destination which cares for and safeguards the rights of international students.
  146. Study Australia under Austrade is seriously underfunded as compared to competitor nations in an increasingly competitive international environment. The Committee’s view is that the Government should consider allocating more of the existing overall Brand Australia budget to international education outreach and that this commitment be used to leverage co-contributions from the sector via a focused marketing levy in accordance with the recommendation below.
  147. The Committee acknowledges while the International Centre of Excellence is breaking ground for new education markets, the Committee considers that a broader targeted five-year marketing expansion focusing on new markets could accelerate this work by integrating the sector, state and territory governments and the Federal government to focus expansion efforts into select countries. Funding for this and other investments to build a more unified Team Australia brand, could be supplemented by a provider levy, a state and territory contribution fund or similar.
  148. Skills shortages are endemic in critical sectors requiring VET qualification such as aged care and allied health, especially in regional Australia. There are limited post-study work rights or pathways to permanent for VET students. The Committee is concerned that opening up such pathways widely (beyond very limited circumstances) may provide perverse incentives and corrupt student choices, attracting students who have no intention of working in skills shortage areas and simply want to work in Australia hence is not persuaded at this time of the merits of extensive post study work rights in VET. If this were to be considered it should be an ad-hoc occasional approach to provide a certain number of places year to year in skills shortage areas for the benefit of the Australian economy, NOT telegraphed upfront to attract students or create expectations.
  149. Instead, the Committee considers that the Government should expand practical training programs which deliver development support to Australia’s near neighbours while also contributing to Australian skills needs. There are existing pilots in Timor Leste and neighbouring countries that deliver practical on and offshore education and training placements. These should be expanded creating a recognised class of ‘International Traineeships’. For example, nursing and aged care qualifications could be partially delivered to students offshore, including some already working in these sectors, with the practical work integrated learning and traineeships delivered onshore. Skilled migration pathways may be available for workers who have proven their skill and work history in these sectors. This would lower the cost of training delivery and help fill Australia’s skills shortage needs.

2.150The Committee recommends the Government lead a ‘Team Australia’ program to build a stronger national international education brand and platform and agree on a five-year prioritised Market Diversification Plan. An enhanced Team Australia approach will:

• better coordinate through shared agreements, Australian Government agencies (Department of Education, Department of Home Affairs, Department of Employment and Workplace Relations and Austrade), state and territory governments and the sector
• build and maintain a national platform and approach to promote Australia’s quality education within a fiercely competitive international arena
• address issues of fragmentation, duplication, and divisive competition in the current marketing of Australian education to the world.

Team Australia should prioritise the development of a five-year Market Diversification Plan into new and emerging geographic markets. The five-year plan should have shared governance and be resourced across the sector including federal, state and territory contributions. The plan should:

• identify and agree on a limited number of priority countries for joint focus in sub-Saharan Africa, Southeast Asia and South and Central America (considering for example Nigeria, Kenya, Botswana, Zimbabwe, Indonesia, Vietnam, the Philippines, Brazil, Colombia and Chile)
• consider innovative ways to fund places for students of the Blue Pacific to study in Australia and seek to deepen international education ties within the Pacific Island Development (PID) Forum to advance democracy and support peace and prosperity within our region
• form agreed migration and education settings to enable and encourage the best and brightest international students from identified priority countries to study in Australia, including Department of Home Affairs permitting lead providers to take approved and calculated risks in the early phases of market development without affecting their visa ratings
• drive diversification of education offerings in traditional markets, with a focus on India
• be jointly resourced by both the Government (via Austrade) and the sector, potentially via a light touch time-limited marketing levy on Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) providers subject to shared governance so those who pay a levy have influence over how it is spent.

2.151The Committee recommends the Government work with the sector to develop a more systemic approach to tracking and supporting alumni networks, including graduates of Australian education scholarships and programs, with the explicit aim of fostering enduring connections to Australia, with a focus on priority countries and strengthening Australia’s international research networks and partnerships.

2.152The Committee recommends the Government examine opportunities to expand programs that deliver development support to Australia’s near neighbours and contribute to Australian skills needs through practical on and offshore education and training ‘International traineeships’, with an initial focus on aged care and allied health in regional Australia. International Traineeships should be limited to Technical and Further Education providers (TAFEs) and approved Registered Training Organisations (RTOs) and companies to maintain integrity.

Footnotes

[1]Department of Education, ‘Australian Strategy for International Education 2021-2030’, www.education.gov.au/australian-strategy-international-education-2021-2030#:~:text=The%20Australian%20Strategy%20for%20International,the%20centre%20and%20global%20competitiveness, viewed 20 August 2023.

[2]Ms Melissa Banks, Head of International Education Centre of Excellence, Austrade, Committee Hansard, Canberra, 15 May 2023, pages 47-48.

[3]Navitas, Submission 38, p. 5.

[4]Navitas, Submission 38, p. 5.

[5]Australian Chamber of Commerce and Industry (ACCI), Submission 5,p. 6.

[6]ACCI, Submission 5, p. 6.

[7]International Student Education Agents Association (ISEAA), Submission 29, p. 2.

[8]Mr Mike Ferguson, Pro Vice-Chancellor, International, Charles Sturt University (CSU), Committee Hansard, Orange,26 June 2023, p. 2.

[9]English Australia, Submission 50, p. 3.

[10]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88. p. 9.

[11]Austrade, Submission 73: 1, Answer to Question on Notice, p. 2.

[12]Mrs Melissa Banks, Head of International Education, Austrade, Committee Hansard, Canberra, 16 May 2023, p. 22.

[13]Austrade, Submission 73: 1, Answer to Question on Notice, p. 2.

[14]University Australia, Submission 59, p. 7.

[15]University Australia, Submission 59, p. 7.

[16]La Trobe University (La Trobe), Submission 24, p. 1.

[17]La Trobe, Submission 24, p. 1.

[18]La Trobe, Submission 24, p. 2.

[19]Regional Universities Network (RUN), Submission 26, p. 2.

[20]RUN, Submission 26, p. 2.

[21]RUN, Submission 26,p. 2.

[22]Department of Education, Submission 43, p. 16.

[23]Department of Education, ‘Destination Australia’, www.education.gov.au/destination-australia, viewed 11 September 2023.

[24]Department of Education, Submission 43, p. 16.

[25]Department of Education, ‘Destination Australia’, www.education.gov.au/destination-australia, viewed 11 September 2023.

[26]Group of Eight Universities (Go8), Submission 12, p. 3.

[27]Independent Higher Education Australia (IHEA), Submission 83, p.3

[28]Professor Sarah Todd, Vice President (Global), Griffith University, Committee Hansard, Gold Coast, 17 May 2023, p. 3.

[29]Innovative Research Universities (IRU), Submission 34, p. 2.

[30]Ms Bethany Keats, Marketing and Media Advisor, IRU, Committee Hansard, Melbourne,18 April 2023, p. 18.

[31]IRU, Submission 34: 1, p. 1.

[32]IRU, Submission 34: 1, p. 1.

[33]Ms Banks, Head of International Education, Austrade, Committee Hansard, Canberra, 16 May 2023, p. 19.

[34]Professor Sarah Todd, Vice President (Global), Griffith University, Committee Hansard, Gold Coast,17 May 2023, p. 3.

[35]The Council of Australian Postgraduate Association and National Aboriginal and Torres Strait Islander Postgraduate Association, Submission 52, p. 8.

[36]Department of Foreign Affairs and Trade (DFAT), Submission 63, p. 5.

[37]DFAT, Submission 63, p. 5.

[38]Professor Ly Tran, Deakin University Committee Hansard, Canberra, 15 May 2023, p. 64.

[39]Professor Tran, Deakin University Committee Hansard, Canberra, 15 May 2023, p. 64.

[40]Go8, Submission 12, p. 4.

[41]Victorian TAFE Association, Submission 32, p. 8.

[42]Australian Catholic University (ACU), Submission 7, p. 5.

[43]United Arab Emirates (UAE), ‘Golden visa’, https://u.ae/en/information-and-services/visa-and-emirates-id/residence-visas/golden-visa, viewed 31 July 2023.

[44]Mr Jonathan Chew, Global Head of Insights and Analytics, Navitas, Committee Hansard, Canberra, 15 May 2023, p. 41.

[45]Ms Derryn Belford, Chief Executive Officer, Study Perth, Committee Hansard, Freemantle, 22 August 2023, p. 2.

[46]ACU, Submission 7, p. 5.

[47]Australian Government, ‘2017 Foreign Policy White Paper’, 23 November 2017, p. 28, https://www.dfat.gov.au/sites/default/files/2017-foreign-policy-white-paper.pdf, viewed 21 July 2023.

[48]Australian Government, ‘2017 Foreign Policy White Paper’, 23 November 2017, p. 28, https://www.dfat.gov.au/sites/default/files/2017-foreign-policy-white-paper.pdf, viewed 21 July 2023.

[49]Mr Ray Marcelo, Assistant Secretary, Southeast Asia Strategy, Economic and Communications Branch, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 52.

[50]Austrade, Submission 73, p. 24.

[51]Austrade, Submission 73, p. 24.

[52]Ms Kim Dienhoff, Head of Government Relations, IDP Education, Committee Hansard, Melbourne, 18 April 2023, p. 57.

[53]Mr Chew, Navitas, Committee Hansard, Canberra, 15 May 2023, p. 44.

[54]Mr Chew, Navitas, Committee Hansard, Canberra, 15 May 2023, p. 44.

[55]Dr Peter Hendy, Chief Executive Officer, IHEA, Committee Hansard, Melbourne, 18 April 2023, p. 40.

[56]University of Adelaide, Submission 21,p. 6.

[57]Murdoch University, Submission 61, p. 3.

[58]Independent Tertiary Education Council Australia (ITECA), Submission 69, p. 3.

[59]Mrs Derryn Belford, Chief Executive Officer, Study Perth, Committee Hansard, Canberra, 16 May 2023, p. 22.

[60]Ms Banks, Austrade, Committee Hansard, Canberra,15 May 2023,p. 47.

[61]Mr Jay Meek, General Manager of Trade, Trade and Investment, Austrade, Committee Hansard, Canberra, 16 May 2023, p. 16.

[62]Austrade, Submission 73: 1, Answer to Question on Notice, p. 2.

[63]Austrade, Submission 73:1, Answer to Question on Notice no.3, p. 4.

[64]Mrs Derryn Belford, Study Perth, Committee Hansard, Canberra,16 May 2023p. 22.

[65]ITECA, Submission 69, p. 9.

[66]La Trobe University, Submission 24, p. 3.

[67]Mrs Elizabeth Wilde, First Assistant Secretary, Development Policy Division, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 48.

[68]Austrade, Submission 73:1, Answer to Question on Notice no.5, pages 5-6.

[69]Austrade, Submission 73:1, Answer to Question on Notice no.4, p. 5.

[70]Austrade, Submission 73:1, Answer to Question on Notice no.3, p. 4.

[71]Austrade, Submission 73:1, Answer to Question on Notice no.6, p. 6.

[72]Austrade, Submission 73:1, Answer to Question on Notice no.6, p. 6.

[73]Austrade, Submission 73:1, Answer to Question on Notice no.6, pages 6-7.

[74]Austrade, Submission 73:1, Answer to Question on Notice no.6, p. 7.

[75]Statistics Canada, ‘Financial information of universities for 2018/2019 school year and projected impact of COVID-19 for 2020/2021, https://www150.statcan.gc.ca/n1/daily-quotidien/201008/dq201008b-eng.htm, viewed 13 July 2023.

[76]Austrade, Submission 73,p. 24.

[77]Department of Education, Submission 43, p. 7.

[78]Department of Education, Submission 43, p. 7.

[79]ACU, Submission 7, p. 4.

[80]ITECA, Submission 69, p. 9.

[81]ITECA, Submission 69, p. 9.

[82]UNSW Sydney, Submission 22, p. 5.

[83]UNSW Sydney, Submission 22, p. 5.

[84]DFAT, Submission 63, p. 9.

[85]DFAT, Submission 63, p. 9.

[86]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88 – Attachment A, p.24.

[87]University of Canberra (UC), Submission 17.1, p. 4.

[88]Professor Todd, Griffith University, Committee Hansard,Gold Coast, 17 May 2023, p. 8.

[89]Professor Todd, Griffith University, Committee Hansard,Gold Coast, 17 May 2023, p. 8.

[90]Dr Carolyn Evans, Vice-Chancellor and President, Griffith University, Committee Hansard, Canberra, 15 May 2023, p. 66.

[91]DFAT, Submission 63, p. 9.

[92]DFAT, Submission 63, p. 9.

[93]DFAT, Submission 63, p. 9.

[94]DFAT, Submission 63, p. 9.

[95]DFAT, Submission 63, p. 9.

[96]DFAT, ‘Southeast Asia Economic Strategy’, https://www.dfat.gov.au/geo/southeast-asia/southeast-asia-economic-strategy, viewed 12 July 2023.

[97]DFAT, Submission 63, p. 7.

[98]Austrade, Submission 73, p. 18.

[99]Austrade, Submission 73: 1, Answer to Question on Notice no. 4, p. 7.

[100]Griffith University, Submission 35, p. 2.

[101]Austrade, Submission 73, p. 25.

[102]Austrade, Submission 73, p. 25.

[103]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88, p.17.

[104]The University of Adelaide, Submission 21, p. 6.

[105]Austrade, Submission 73, p. 25.

[106]Austrade, Submission 73, p. 25.

[107]Austrade, Submission 73: 1, Answer to Question on Notice no. 3, p. 8.

[108]Austrade, Submission 73: 1, Answer to Question on Notice no. 3, p. 9.

[109]New Zealand Ministry of Education, ‘Export Education Levy’, 7 June 2023, https://www.education.govt.nz/school/funding-and-financials/resourcing/operational-funding/export-education-levy/#reintroduced, viewed 1 August 2023.

[110]Austrade, Submission 73: 1, Answer to Question on Notice no. 3, p. 9.

[111]Mrs Wilde, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 51.

[112]Department of Education, Submission 43, p. 17.

[113]ACCI, Submission 5, p. 8.

[114]Mrs Wilde, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 51.

[115]Go8, Submission 12, p. 3.

[116]Go8, Submission 12, p. 7.

[117]Mrs Wilde, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 51.

[118]Mrs Wilde, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 51.

[119]Department of Education, Submission 43, p.17.

[120]Department of Education, Submission 43, pages 11-12.

[121]Department of Education, ‘Note on UGC regulations on Academic Collaboration between Indian and Foreign Higher Educational Institutions to offer Twinning, Joint Degree and Dual Degree Programs’, 24 May 2022, https://www.education.gov.au/international-education-engagement/resources/note-ugc-regulations-academic-collaboration-between-indian-and-foreign-higher-educational, viewed 28 July 2023.

[122]DFAT, ‘Comprehensive and Progressive Agreement for Trans-Pacific Partnership’, www.dfat.gov.au/trade/agreements/in-force/cptpp/comprehensive-and-progressive-agreement-for-trans-pacific-partnership, viewed 28 July 2023.

[123]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88, p. 17.

[124]DFAT, ‘Southeast Asia Economic Strategy’, https://www.dfat.gov.au/geo/southeast-asia/southeast-asia-economic-strategy, viewed 22 June 2023.

[125]DFAT, ‘Southeast Asia Economic Strategy’, https://www.dfat.gov.au/geo/southeast-asia/southeast-asia-economic-strategy, viewed 28 July 2023.

[126]DFAT, Submission 63, p. 5.

[127]Go8, Submission 12, p. 3.

[128]University of Queensland (UQ), ‘UQ to strengthen leadership capabilities of Pacific fisheries leaders, 20 November 2018, https://global-partnerships.uq.edu.au/blog/2020/03/uq-strengthen-leadership-capabilities-pacific-fisheries-leaders, viewed 23 June 2023.

[129]Mrs Wilde, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 51.

[130]DFAT, Submission 63, pages 5-6.

[131]DFAT, Submission 63, p. 7.

[132]Ms Edwina Betts, Acting Assistant Secretary, Education and Integration Branch, Office of the Pacific, DFAT, Committee Hansard, Canberra, 15 May 2023, pages 46-47.

[133]Mr Aedan Whyatt, Assistant Secretary, Global Programs and Partnerships Branch, DFAT, Committee Hansard, Canberra, 15 May 2023, pages 53-54.

[134]Australian Council of Graduate Research (ACGR), Submission 3, p. 2.

[135]ACGR, Submission 3, p. 3.

[136]ACGR, Submission 3, p. 3.

[137]ACGR, Submission 3,p. 3.

[138]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88, p. 16.

[139]Study Melbourne, ‘International Research Partnerships Program’, www.studymelbourne.vic.gov.au/industry/programs/research-partnerships, viewed 24 August 2023.

[140]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88, p. 16.

[141]ACGR,Submission 3,p. 2.

[142]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88 - Attachment, p. 20.

[143]Australian Government, ‘2017 Foreign Policy White Paper’, 23 November 2017, p. 112, https://www.dfat.gov.au/publications/minisite/2017-foreign-policy-white-paper/fpwhitepaper/pdf/2017-foreign-policy-white-paper.pdf, viewed 21 July 2023.

[144]DFAT, Submission 63, p. 13.

[145]DFAT, Submission 63, p. 13.

[146]DFAT, Submission 63, p. 13.

[147]DFAT, Submission 63, p. 13.

[148]Ms Susannah Patton, Director, Southeast Asia Program, Lowy Institute, Committee Hansard, Canberra, 15 May 2023, pages 52-53.

[149]Mr Whyatt, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 54.

[150]Mrs Wilde, DFAT, Committee Hansard, Canberra, 15 May 2023, p. 51.

[151]DFAT, Submission 63, p. 13.

[152]Queensland Government, Submission 82, p. 21.

[153]Ms Kirsten Andrews, Vice-President, External Engagement, University of Sydney, Committee Hansard, Sydney, 2 March 2023, p. 3.

[154]Queensland Government, Submission 82, p. 18.

[155]The University of Adelaide, Submission 21, p. 3.

[156]Victorian Government Department of Jobs, Skills, Industry and Regions, Submission 88 – Attachment, p. 20.

[157]ACU, Submission 7, p. 9.

[158]Mrs Helen Kronberger, Manager, International Education, Global Engagement, Austrade, Committee Hansard, Canberra, 15 May 2023, p. 56.

[159]Ms Patton, Lowy Institute, Committee Hansard, Canberra,15 May 2023, p. 51.

[160]Ms Patton, Lowy Institute, Committee Hansard, Canberra,15 May 2023, p. 51.

[161]Dr Joanne Barker, Private capacity, Committee Hansard, Canberra, 15 May 2023 p. 51.

[162]Ms Patton, Lowy Institute, Committee Hansard, Canberra,15 May 2023, p. 55.

[163]Dr Barker, Submission 103, p. 3.

[164]Ms Patton, Lowy Institute, Committee Hansard, Canberra, 15 May 2023, p. 55.

[165]Ms Patton, Lowy Institute, Committee Hansard, Canberra,15 May 2023, p. 51.

[166] The ‘Blue Pacific’ has been used to describe the united social and economic vision that recognises the region as ‘Big Ocean’ countries.

[167] Mr Kelly Smith, Pro-Vice Chancellor, International, Murdoch University, Committee Hansard, Freemantle, 22 August 2023, p. 5.

[168] See for example: Mr Justin de Sousa, Director, International, University of Notre Dame Australia, Committee Hansard, Freemantle, 22 August 2023, p. 11; Mr Jake Garman, Deputy Vice-Chancellor, International, Edith Cowan University (ECU), Committee Hansard, Freemantle, 22 August 2023, p. 10.