Coalition Senators' additional comments
1.1The Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 (bill) is principally concerned with providing the government with the power to cap international student enrolments in Australia, which is crucial because of Labor’s gross mismanagement of immigration.
1.2The bill was introduced into the House of Representatives on 15 May 2024. The following day, the bill was referred by the Senate to the Senate Education and Employment Legislation Committee (committee) for inquiry with a report due, initially, on 15 August 2024
1.3The number of international students in Australia has more than doubled since the Albanese government was elected.Labor’s ‘Big Australia’ policy and its immigration chaos have had a very significant impact on Australia’s housing crisis, particularly in Sydney and Melbourne where a large number of international students reside, along with other key services.
1.4The first public hearing was held in Canberra on 6 August 2024. By reason of the government’s reluctance to disclose all relevant information about the bill including in relation to indicative student caps for individual providers, we needed to seek three additional public hearings for this inquiry which took place in Sydney on 26 August 2024, in Sydney on 6 September 2024, and in Canberra on 2 October 2024.
1.5On 27 August 2024, the Minister for Education, the Hon Jason Clare MP (Minister), held a press conference announcing some details about the government’s student cap plan including the proposed National Planning Level (NPL) of 270,000 new overseas student commencements, referred to as the ‘total enrolment limit’ in the bill.[1]
1.6It was disappointing that no information on student caps was released until the morning after the second hearing which we suggest was deliberate and disrespectful.How could the government so disregard the important role of the committee to scrutinise the bill, as well as education providers including those who had given evidence at the second hearing in an information vacuum?
1.7Coalition senators determined not to accommodate the government’s thinly veiled attempts to cover up the significant flaws with this bill, or the most detrimental impacts which would flow to the tertiary education sector if the bill was passed without amendment.
1.8Similarly, it is disappointing we needed to obtain an Order for Production of Documents in the Senate to force the Albanese Government to disclose the full list of student cap allocations to vocational and education training (VET) providers along with other relevant data.[2] On 8 October 2024, it was necessary to obtain a further Order for the Production of Documents in the Senate in relation to this bill and we trust the government will not continue to obfuscate our attempts to access important information including in relation to its discredited net overseas migration (NOM) forecasts.
1.9Following our pursuit of individual international student caps as proposed by the government for both the higher education and VET sectors, we also secured the committee’s agreement to re-open submissions so that key stakeholders and, particularly, impacted providers, could have their say.
1.10The government has a critical responsibility to cooperate with Senate bill inquiries to ensure the Senate can discharge its important responsibility to review bills before the Parliament.The government’s continuing attempts through this inquiry to conceal information from the committee, and to avoid appropriate scrutiny, are unacceptable.
1.11The committee received 196 submissions.[3] We thank submitters which have worked so hard to raise legitimate concerns with the committee about this bill and regret the deep distress and uncertainty which some providers have suffered as a result of the government’s decision to put forward such a poorly drafted bill and indicative total enrolment limits about which there was no consultation.
1.12In 2019, international education was worth just over $40 billion to the Australian economy.[4] This was underpinned by 510,460 new international student commencements in that year.[5]
1.13Despite the financial downturn during the COVID-19 pandemic, in 2023 the value of international education to the Australian economy had grown to $47.8 billion. Of this, $30.5 billion was paid as goods and services and $17.1 billion was paid as tuition fees.[6]
1.14Since the election of the Albanese Government, the number of international students studying in Australia has more than doubled – from 336,000 international students in March 2022 to 713,144 international students in February 2024, declining slightly to 679,293 international students as at 31 August 2024.[7]
1.15In 2022-23, the Albanese Government’s first full program year in government, 577,295 student visas were granted,[8] surpassing the previous record by 171,533 student visa grants.
1.16As referenced in the committee’s report, in May 2024 the number of international student enrolments in Australia was 809,780 (noting that some students enrol in more than course). Alarmingly, this figure grew to 943,977 in July 2024 (year to date) being the most recent data available.[9] We note this latest data has not been included in the majority committee report.
1.17In the face of such unprecedented growth in international students, the Albanese Government has made several changes to the student visa settings including increasing the financial capacity requirements for a student from $21,041 to $29,710; increasing the Student Visa Application Charge from $710 to $1,600; increasing the English language proficiency requirements for students and graduates; and introducing Ministerial Direction 106 Genuine Student Requirement .[10]
1.18Most significantly, the Albanese Government issued Ministerial Direction 107[11] to prioritise visa processing according to provider level risk, as assessed by a provider’s evidence level under the Simplified Student Visa Framework.[12]
1.19The impacts of Ministerial Direction 107 have been far reaching and have had a manifestly disproportionate and discriminatory impact on regional and smaller universities and private higher education and VET providers.
1.20Many stakeholders called for the removal of Ministerial Direction 107 in their submissions and in evidence to the committee. For instance, Innovative Research Universities stated in it submission:
Ministerial Directive 107 was introduced by the Minister for Home Affairs in December 2023 as part of the government’s Migration Strategy, to slow down visa processing. It has led to disproportionate and unfair impacts on IRU students and universities. The effect of Ministerial Directive 107 has been to further entrench inequities across the sector, undermine diversification and reduce enrolments in courses relevant to Australia’s skills needs.[13]
1.21La Trobe University also raised major concerns, asserting:
…the introduction of Ministerial Direction 107 in December 2023 has affected the sector unevenly. The sudden and unplanned drop in international student revenue threatens to hinder La Trobe’s ability to deliver on its equity mission, including to the regional communities it serves.” “Ministerial Direction 107 created blunt and unpredictable levers to restrict the number of international students.[14]
1.22The committee received overwhelming evidence about the enormous economic harm the Albanese Government’s Ministerial Direction 107 has wreaked on the tertiary education sector, with conservative estimates that regional and smaller universities have suffered losses of at least half a billion dollars.[15]
1.23On 16 September 2024, the Minister wrote to universities with an ultimatum, declaring Ministerial Direction 107 would only be lifted if this bill was passed.The letter was silent in relation to whether the Government supported any amendments to the bill.Coalition senators are concerned about this heavy-handed approach by the Minister which in our view constitutes an inappropriate threat to any provider which is seeking improvements to the bill.
1.24Coalition senators are deeply concerned about the severe economic damage Labor has inflicted on regional and smaller universities, as well as private higher education and VET providers because of Ministerial Direction 107 and Labor’s chaotic approach to policy making in the higher education sector more broadly.
1.25We also raise concerns about the Department of Home Affairs’ proposal to delay the adjustment of evidence levels for providers.Many regional and smaller universities have suffered downgrades in their evidence level ranking caused by the high number of student visa refusals they have suffered, a direct result of Ministerial Direction 107 and the Government’s policy.
1.26By its own admission, the Albanese Government’s mismanagement of immigration has fuelled Australia’s housing crisis.On 12 September 2024, the Department of Education even published on its website a fact sheet on international students and the rental market,[16] confirming that seven per cent of international students makeup the private rental market and not four per cent as contended by the Student Accommodation Council.
1.27The Department of Education states there are “significant housing pressures in inner-city locations with a higher concentration of international students”, noting that in five local government areas, international students exceeded 15 per cent of the total renting population.
1.28In the Sydney CBD, where rents for units (median rental asking price) have increased from $838 in 2019 to $1,200 in 2024 representing a staggering 43 per cent increase in rents, international students make up 42 per cent of the total population. In Melbourne City, where median rents have increased from $533 to $633 in the same period, international students make up 18 per cent of the total population.
1.29The Department of Education concluded that “Evidence suggests a connection between rental prices and the high numbers of international students”.It also confirmed that ‘Even small impacts on the demand and supply of housing can impact on rents and housing affordability, noting “The Reserve Bank of Australia [(RBA)] estimated that a 1% increase in dwelling stock results in the cost of rentals decreasing by 2.5%.”
1.30On 8 October 2024, the RBA released its minutes of the monetary policy meeting of the board on 24 September 2024, noting that lower numbers of international students driven by a cap on enrolments would support access to housing:
The cap on international student commencements to be applied to the higher education and vocational education and training sectors in Australia from 2025 was expected to weigh on services exports. Members noted that the cap was in addition to the earlier tightening in requirements for student visa applicants, which had already seen a fall in student visa grants. However, the implications of lower student arrivals for the balance between aggregate demand and supply, and hence for the inflation outlook, were less clear. Lower numbers of international student arrivals would be likely to reduce aggregate demand (including for housing), but also lower growth in population and therefore the economy’s supply capacity. The implications of these various effects would be assessed more carefully as part of the subsequent forecast update.[17]
1.31The housing crisis, which is caused, in part, by excessive international students in large metropolitan cities, is compounded by the failure of some universities to provide adequate student accommodation.While this bill supposedly requires the government to recognise the provision of student accommodation in determining individual student caps, this requirement is opaque.
1.32Despite there being nearly 700,000 student visa holders in Australia, recent analysis undertaken by the Department of Education estimates around 50 per cent of all international students reside in the private rental market, 25 per cent live with parents or relatives, only 20 per cent are in student accommodation and a further three per cent use homestay arrangements
1.33Student accommodation at Australia’s public universities offers only 40,000 beds. Whilst private student accommodation providers and homestay programs offer additional capacity, this supply must also support domestic students who need to move away from home to undertake their studies
1.34Based on evidence to the committee particularly from Western Sydney University which asserts it has an excess of accommodation,[18] we are also concerned the Government has not even considered the availability of student accommodation before determining indicative student caps.
1.35Coalition senators reiterate that the primary purpose of Australian public universities, which receive many billions of dollars of taxpayer funding every year, is to educate Australian students.
1.36Every country has a responsibility to manage its migration program in the national interest.
1.37Given the excessive number of foreign students who have flowed into Australia’s most prestigious universities in recent years, particularly the University of Sydney and the University of NSW in central Sydney, and the University of Melbourne and Monash University in Melbourne, we respectfully suggest that a number of Group of Eight universities have lost sight of their core mission.
1.38At the University of Sydney, international students make up more than 50 per cent of the total student population (noting an exact figure is not currently available) while at the University of Melbourne 46 per cent of students are from overseas.
1.39The ‘rivers of gold’ derived from international student enrolments are now very substantial.While public universities argue the estimated $9 billion per annum they receive from international students is vital to subsidising the delivery of domestic courses and undertaking ground-breaking research,[19] discerning the true cost of the delivery of university courses is complex, opaque and difficult to quantify.
1.40Last year, the University of Sydney alone made a staggering $1.5 billion from international students.We believe such large amounts of money are leading to perverse outcomes including a lack of focus on the core mission of public universities which is to provide Australian students with high value tertiary qualifications which deliver meaningful and sustainable employment outcomes.
1.41We recognise the important role that international students play, particularly on university campuses. This cannot be understated. Notwithstanding, universities must be cognisant of the social licence that is required to educate international students.
1.42The Department of Education states that 90 per cent of international higher education students enrolments are in the major cities of Australia (Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra).[20] The excessive number of foreign students, particularly in Sydney and Melbourne, has fundamentally changed the character of a number of our public universities, and put at risk their social licence to educate international students.
1.43These concerns have been led most prominently by Professor Iain Martin, Vice-Chancellor of Deakin University, who contends that foreign students at public universities should be capped at a maximum of 35 per cent.This call for a flat cap was supported by a number of other universities but, unsurprisingly, not universities where the foreign students exceed 35 per cent as a proportion of the total student population. Professor Martin told the committee on 6 September 2024:
As universities, we have the privilege to educate international students, but we do that with the permission of the Australian government and the blessing of the Australian public. If we lose that social contract of what we do, how the university benefits and then how the community around us benefits because the wider community is concerned about issues like the number of students, mix of students and meeting both domestic and international needs, we will lose that very permission that undermines the great success story that has been Australian international education.
That's why I think that it is important that we have that open and transparent debate around how we are driving these settings and how we make sure that we balance out our commitments to what we need to do in metro, regional and remote settings in Australian with the really important benefits for international students but also the benefits that those students bring. It's getting that balance right and having that conversation, and it comes from doing it in the light, not behind some hidden process.[21]
1.44There is growing evidence that high numbers of international students are, at times, compromising the educational outcomes of Australian domestic students.For instance, on 1 September 2024, Senator Henderson stated:
…there was the story a few weeks ago about a young first year commerce student at Melbourne uni. He’s just left commerce because his entire tutorial was basically being spoken in Mandarin, including from the tutor – the occasional bit of English here and there – but every other student in his class was a foreign student. They were all speaking in Mandarin, and he was just in despair, he couldn’t learn. And that is not good enough. So, as I say, the universities have got to focus on their fundamental obligation to Australians, and that is teaching excellence, getting back to basics, face-to-face learning, and making sure that they are delivering high value degrees. And I think too many Australians are leaving university without a high value degree.[22]
1.44While the bill gives the Minister the power to set total enrolment limits for each higher education and VET provider which we support for the reasons stated above, we hold deep concerns about the lack of adequate safeguards to ensure such caps are allocated appropriately, fairly and in the national interest.The Coalition has consistently raised concerns that the Government’s student caps scheme is riddled with incompetence, secrecy, uncertainty and unfairness.
1.45For instance, it was only through the work of this committee that we discovered that pilot training schools in Australia faced collapse by reason of the botched allocation of international student caps which not only jeopardises contracts with international airlines but puts at risk the viability of Australia’s leading flight training colleges. As the Independent Tertiary Education Council Australia (ITECA) argued:
The aviation training sector relies heavily on international student enrolments to maintain operational viability … By capping international student numbers, Australia risks significantly reducing the supply of qualified pilots, leaving airlines unable to meet demand. The shortage of pilots is already a critical issued for airlines worldwide.[23]
1.46Mr Johan Pienaar, CEO of Flight Training Adelaide, told the committee at its 2 October 2024 hearing that his business, the country’s largest pilot training school, faced imminent collapse:[24]
The revenue generated is in the order of $80 million per annum from both those schools. The new cap that's being imposed on us will take revenue from our international school, Parafield, effectively down from $40 million a year to $15.8 million for 2025. With an estimated loss of $10.1 million, we will cease to exist and so will the Qantas Group Pilot Academy.[25]
1.47The Department of Education and the Department of Employment and Workplace Relations have now conceded the Government’s proposed cap would have dire consequences for the flight training sector, with the Department of Employment and Workplace Relations indicating it intends to conduct further consultation and apply national interest considerations to reassess the sector’s cap.[26] This is an example of the secret way the Albanese Government is fixing its student caps debacle about which we are concerned.
1.48Under the bill as currently drafted, there is no requirement to publicly report individual student caps which may, in theory, allow a minister to do improper or unfair deals in relation to the allocation of student caps.
1.49Coalition senators are also concerned there is currently no requirement in the bill which requires the Minister to be publicly accountable for his student cap allocations which should be remedied.
1.50As noted in paragraph 1.5, the NPL consists of a cap on new overseas student enrolments of 170,00 - 145,000 for Australian public universities; 30,000 for private higher education providers; and 95,000 for VET providers.But this tells only part of the story.
1.51It is clear the Government has looked after the big end of town.Despite the Government’s spin, the fact remains that the 2025 enrolment cap of 61,000 for the Group of Eight universities is almost exactly that same as international student enrolments for these universities in 2023.This represents a 12 per cent increase from 2019.The Group of Eight’s “cut” of 22,000 places for 2025, as compared to the number of international students enrolled in 2024, has only occurred because Ministerial Direction 107 ensured foreign students at the Group of Eight universities skyrocketed to anticipated 83,000 for 2024.
1.52In contrast, regional universities have still been hit hard.After international student enrolments crashed to just 8,949 in 2024 principally as a result of Ministerial Direction 107, regional universities have received a total cap in 2025 of 15,900. However, this represents a significant reduction of 16 per cent compared with 2019 when international student enrolments totalled 19,021.[27]
1.53Throughout our inquiry, we learned that some regional and smaller universities have been hit with caps which contradicted the Minister’s announcement that regional universities would be the winners from the NPL. These include Federation University in Ballarat and Western Sydney University.
1.54Distinguished Professor George Williams raised serious concerns about the cap provided to Western Sydney University which stated in its submission:
Our region relies on international students to fill acute skills shortages, including in professions that are difficult to staff, such as nursing and aged care. Most of the 1,350 international students who studied nursing and midwifery with us last year have gone on to work in Western Sydney’s overburdened hospitals. The region is forecast to be short of 10,000 nurses next year. Without international students graduating as nurses, Western Sydney’s public hospital system would face further strain, impacting on patients.[28]
1.55In its submission, Federation University stated:
The interconnection between international student revenue and domestic post-secondary education makes these risks real and serious. Migration policy settings have already led Federation to make 163 professional and back-office staff redundant to offset a drop in international enrolments of over 50%, equivalent to $80 million in revenue.[29]
1.56We also learned about the appalling treatment of many private higher education and VET providers which some submitters argued was nothing more than an ideological attack on hard working Australians who had built successful, reputable businesses and were providing highly valued education services to both domestic and international students.
1.57These include:
Imperial Engineering Education in South Australia which has a CRICOS capacity of 275 but has been given a cap of 10 places, putting its future viability as a provider of engineering degrees targeted to the AUKUS submarine program at risk along, with its $3.5 million investment at risk;[30]
Ikon Institute of Australia which has been hit with a cap of 200, an 87 per cent reduction on the number of foreign students who commenced in 2024;[31]
Holmes Institute, one of Australia’s most established higher education providers, which has been provided with a cap of 990, a fraction of its CRICOS capacity as determined by the regulator of 8,806;[32]
Nova Anglia, a newly registered higher education provider in Brisbane offering bachelor’s degrees in electric vehicle technology which was given a student cap of zero despite being registered by the regulator to teach 250 international students at any given time;[33]
Academy of Interactive Entertainment Ltd and AIE Institute Ltd which submitted that its student cap allocation of two had put its $200 million investment in a new facility in Canberra including 600 beds for domestic and international students at peril.[34] Chief executive officer John De Margheriti told the committee on 2 October 2024:
What country are we living in? I feel like I'm in a banana republic. I've got a college that has generated an industry that's worth $3 billion to $4 billion to Australia. We come to a third to 40 per cent of the entire employment. We're a not-for-profit educator. We're tax exempt. We've been servicing the Australian market. We're just entering international markets now, and we're faced with this. We've gone through COVID. We went through the VET student loan debacle in 2016. We go through COVID, and now here we are again. What is going on? You're meant to be serving the Australian people, but you're not. The fact that we're actually here having this discussion is a total shock to me. But I'm here. I've flown in from Italy. I cut down my holiday to be here to confront you and tell you to wake up and to not destroy our nation, because that's what you're about to do.[35]
1.58As of 6 September 2024, the Department of Education has advised that 107 public universities and private higher education providers have raised matters related to their indicative caps.[36] The Department of Employment and Workplace Relations has advised that more than 160 providers have raised concerns in the VET sector.[37]
1.59The Albanese Government has attempted to sell this bill as one that focuses on 'quality and integrity', yet Ms Claire Field in her submission to the inquiry highlighted numerous major concerns with cap allocations including that:[38]
more than 10 providers received an indicative allocation of more than their CRICOS registration limit;
providers whose CRICOS registration is currently suspended have been provided with allocations;
providers whose registration has been cancelled, suspended or not renewed by ASQA and are appealing the decision with the AAT have been provided with allocations;
129 providers which enrolled no students in either 2019, 2022, 2023 or 2024 YTD were allocated places for 30 commencements; and
420 places have been allocated to five publicly funded universities and nine private higher education providers which are registered dual sector providers yet have no CRICOS approval to deliver to international students.
1.60These anomalies clearly demonstrate there has been no consultation between the Department of Education and the Department of Employment and Workplace Relations, let alone with the regulators, the Tertiary Education Quality and Standards Agency (TEQSA) and the Australian Skills Quality Authority (ASQA.)
1.61It is clear to Coalition senators that should this data not have been made public, the Government’s allocations would have gone unchecked.
1.62Coalition senators strongly echo the calls from stakeholders for the calculation methodology and data used to be made publicly available and published to ensure there is full transparency and accountability of the Government’s methodology.
1.63As Ms Tracy Harris noted in her submission:
... if caps are to be implemented, then there must be transparency and clarity in the formula that is used.[39]
1.64There are a number of other significant issues with the bill, some of which have been identified in the majority committee report.These include in relation to the following matters:
1.65Parts 1 and 2 of the bill are intended to address integrity concerns across the education sector following the release of the Rapid Review into the Exploitation of Australia’s Visa System (the Nixon review).[40]
1.66The review cited approximately 75 per cent of international students seek the assistance of an education agent, but noted the current regulators for the education sector, being TEQSA and ASQA, play no role in the supervision of education agents. Instead, the onus is on the education provider to ensure the agents they deal with do not engage in false, misleading or unethical recruitment practices.
1.67The bill updates the definition of an “education agent”, inserts a new definition of “education agent commission” and inserts a fit and proper test for providers engaging with education agents.
1.68Some stakeholders raised concerns the breadth of the new definition of education agent may have unintended consequences.
1.69The Australian Chamber of Commerce and Industry submission stated for instance:
… the broad definition of 'associate' may pose logistical challenges for providers, potentially deterring valuable investments and complicating compliance. To mitigate these issues, it is crucial to carefully consider the unintended consequences of these broad definitions before progressing the Bill.[41]
1.70The submission from Independent Higher Education Australia (IHEA) stated:
While IHEA supports clarity through the definition of an education agent, the references to people who "provide advice or assistance" to overseas students or are "otherwise dealing with overseas students" seems quite broad, far−reaching and may capture people who are not engaged in a financially beneficial relationship with a provider. While we understand the intent is to capture all situations where there are monetary and non−monetary agreements and benefits to agents, it is not clear how a compliance regime will support the identification of non−monetary benefits.
1.71Whilst the definitions are intended to support the integrity of the sector, Coalition senators note this is a long way removed from recommendation 13 in the Nixon review which proposed regulating onshore and offshore education agents and adopting a similar model to the United States.
1.72Coalition senators note the Government response to the Nixon Review agreed in principle only to the recommendation to regulate education agents. The Government response to recommendation 13 stated
The Minister for Home Affairs will consider expanding the remit of the Office of the Migration Agents Registration Authority (OMARA) to include education agents as providers of visa advice. An expanded OMARA role would be complemented by increased accountability of education providers, without requiring separate regulatory infrastructure in the Department of Education.[42]
1.73The Law Council of Australia also supported the implementation of a system of registration for onshore and offshore education agents.[43]
1.74Given the report was handed to the Government in March 2023, nearly 18 months ago, Coalition senators note with disappointment that this bill is the extent of the Government’s efforts to address risks to international students through abuses of sexual exploitation, human trafficking and other organised crime.
1.75Parts 7 and 8 of the bill provides the Minister with the ability to apply caps at a provider, campus and course level, which demonstrates significant overreach. The Group of Eight submission to the inquiry stated:
Parts 7 & 8 of the ESOS Amendment Bill provide the Minister with the power to apply caps on international student enrolments at universities and high-quality public providers, down to the course level, with attendant draconian penalties.
1.76When asked at the 6 August 2024 inquiry hearing on how this could be delivered Ms Vicki Thomson from the Group of Eight Universities said:
We don't believe it can be. I use the example of our universities. It could mean up to 8½ thousand different caps across the eight universities' course and student numbers. Multiply that by 39 and it's significant. We've been asking ourselves, 'How can you actually implement this?’[44]
1.77Mr Luke Sheehy from Universities Australia also said:
… there's universal agreement across Australia's higher education sector, and more broadly, that the intervention at course level is completely unworkable. We have no confidence that the government could do this overall let alone by 1 January 2025. That is why all of us here are saying that the government needs to abandon that intervention, at course level, as part of this legislation.[45]
1.78The bill does not require the Minister to consult with providers or provide appropriate rights of appeal in relation to individual student caps or reasons for decisions.
1.79Given the number of anomalies and errors that we have discovered, we believe as a matter of procedural fairness and natural justice and the potential for devasting consequences for providers, appropriate rights of consultation where the Minister is accountable for the decisions made particularly in relation to individual student caps, are vital.
1.80The bill provides that where a course for overseas students is not delivered at a specific location for 12 months, all courses at all locations which are registered to teach international students are automatically cancelled.This appears to be a case of significant overreach and, in our view, should be remedied.
1.81The bill provides where a registered provider exceeds its total enrolment limit, the provider is automatically suspended with respect of the enrolment of further international students in that course.This is a poorly drafted provision of the bill which has led to confusion in the higher education and VET sector, given the proposed relevant concerning ‘Automatic suspension for all courses for the year’ provides:
(1) If a registered provider fails to comply with section 26D in relation to a year, the registration of the provider is suspended for all courses (other than courses that are exempt from the provider’s total enrolment limit under subsection 26B(4) or 26C(4)) for all locations in respect of the year by force of this subsection.[46]
1.82Part 3 of the Bill provides the Minister with powers to specify a limitation on the registration of new providers or new courses through TEQSA or ASQA for up to a 12-month period to manage growth of the sector.We note the concerns of IHEA and other submitters that this would have the effect of preclude the entry of new providers to the market.
1.83While the minister has recognised the bill will be amended to exempt certain classes of students from being captured within the NPL which reflects another, we are concerned about the lack of certainty as to what constitutes an international students who are foreign government scholarship holders or part of a transnational education arrangement.While the Department of Education has published certain criteria on its website, this is of no legal import and reflects a lack of appropriate consideration and consultation as to how the bill will operate in practice.
1.84Finally, we reiterate concerns about TEQSA’s heavy-handed communications with some private higher education providers in relation to compliance and financial viability concerns as a result of the Government’s indicative student cap allocations, as raised at the fourth public hearing.In a response to a question on notice received on 8 October 2024, we note that TEQSA has apologised, stating:
In the letters we incorrectly suggested the reduction of overseas student numbers had been legislated.TEQSA apologises for this and is contacting affected providers to clarify this miscommunication. Feedback has been provided to staff about this matter to minimise the risk of a recurrence.[47]
Senator Matt O'Sullivan
Deputy Chair
Senator for Western Australia
Senator Slade Brockman
Member
Senator the Hon Sarah Henderson
Participating Member
Senator for Victoria
Footnotes
[1]The Hon Jason Clare MP, Minister for Education, The Hon Tony Burke MP, Minister for Home Affairs, Senator the Hon Murray Watt, Acting Minister for Skills and Training, ‘Improving the sustainability of international education’, Joint Media Release, 27 August 2024.
[2]Senator the Hon Murray Watt, Order of 17 September 2024 (623) relating to vocational and education training - International students, 19 September 2024.
[3]Senate Education and Employment Legislation Committee, Submissions.
[4]Australian Government Department of Education, Education export income – Calendar Year, May 2024.
[5]Australian Government Department of Education, International student monthly summary and data tables, July 2024.
[6]Australian Government Department of Education, Education export income – Calendar Year, May 2024.
[7]Australian Government Department of Home Affairs, Temporary visa holders in Australia.
[8]Australian Government Department of Home Affairs, BP0015 Student visas granted at 2024-08-31, September 2024.
[9]Australian Government, Department of Education, International Student Data for the year–to–date, July 2024.
[10]Ministerial Direction 106 – Assessing the genuine entry and stay requirements for student visa and student guardian applications.
[11]Ministerial Direction 107 – Order for considering and disposing of Student Guardian visa applications and offshore Subclass 500 (Student) visa applications.
[12]Department of Home Affairs, Submission 3, p. 4.
[13]Innovative Research Universities, Submission 17, p. 3.
[14]La Trobe University, Submission 22, p. 2.
[15]Universities Australia, Submission 19, p. 1.
[16]Australian Government Department of Education, International students and the private rental market – available data, (accessed 2 October 2024).
[17]Reserve Bank of Australia, Minutes of the Monetary Policy Meeting of the Reserve Bank Board, 24 September 2024 (accessed 9 October 2024).
[18]Distinguished Professor George Willaims AO, Vice-Chancellor and President, Western Sydney University, Proof Committee Hansard, 26 August 2024, p. 42.
[19]In 2022, public universities received $8.572 billion in international student revenue – see https://www.education.gov.au/higher-education-provider-updates/resources/2022-university-finance-summary-information.
[20]Australian Government Department of Education, International students and the private rental market – available data, (accessed 2 October 2024).
[21]Professor Ian Martin, Vice-Chancellor, Deakin University, Proof Committee Hansard, 6 September 2024, p. 7.
[22]Senator the Hon Sarah Henderson, Interview on Sunday Agenda with Andrew Clennell, Sky News, 1 September 2024.
[23]Natasha Bita, ‘Student cap policies wilfully weakening economy’, Australian, 13 September 2024.
[24]Mr Johan Pienaar, Chief Executive Officer, Flight Training Adelaide, Proof Committee Hansard, 2 October 2024, p. 35.
[25]Mr Johan Pienaar, Chief Executive Officer, Flight Training Adelaide, Proof Committee Hansard, 2 October 2024, p. 35.
[26]Ms Anna Faithfull, Deputy Secretary, Skills and Training, Department of Employment and Workplace Relations, Proof Committee Hansard, 2 October 2024, p. 66.
[27]Natasha Bita, Rich universities warn of cuts to domestic degrees as international student caps slash revenue, Australian, 28 August 2024.
[28]Western Sydney University, Submission 111, p. 3.
[29]Federation University, Submission 52, p. 1.
[30]Dr Mukesh Chander, Chief Executive Officer, Imperial Engineering Education, Proof Committee Hansard, 2 October 2024, p. 1.
[31]Ikon Institute of Australia, Submission 72, p. 1.
[32]Holmes Institute, Submission 37.1, p. 2.
[33]Julie Hare, ‘World-first EV degree sideswiped by allocation of zero students’, Australian Financial Review, 4 September 2024.
[34]Mr John De Margheriti, Chief Executive Officer, Academy of Interactive Entertainment, Proof Committee Hansard, 2 October 2024, p. 23.
[35]Mr John De Margheriti, Chief Executive Officer, Academy of Interactive Entertainment, Proof Committee Hansard, 2 October 2024, p. 26.
[36]Department of Education, answers to questions on notice, 6 September 2024 (received 1 October 2024).
[37]Ms Laura Angus, First Assistant Secretary, Careers and International Skills Division, Department of Employment and Workplace Relations, Proof Committee Hansard, 2 October 2024, p. 72.
[38]Ms Claire Field, Submission 130, pp. 1–17
[39]Ms Tracy Harris, Submission 63, p. 3.
[40]Australian Government, Department of Home Affairs, Rapid Review into the Exploitation of Australia's Visa System, https://www.homeaffairs.gov.au/reports-and-publications/reviews-and-inquiries/departmental-reviews/rapid-review-exploitation-visa-system.
[41]Australian Chamber of Commerce and Industry, Submission 36, p. 4.
[42]Australian Government, Government response to the Nixon Review, October 2023.
[43]Law Council of Australia, Submission 61, pp. 8 and 11.
[44]Ms Vicki Thomson, Chief Executive and Director, Group of Eight, Proof Committee Hansard, 6 August 2024, p. 5.
[45]Mr Luke Sheehy, Chief Executive Officer, Universities Australia, Proof Committee Hansard, 6 August 2024, p. 5.
[46]Proposed subsection 96(1), Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024.
[47]Tertiary Education Quality and Standards Agency, answer to written question on notice, 2 October 2024 (received 4 October 2024).
Inquiry into the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 [Provisions].
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