Peter Dutton's international student cap has been called a "sledgehammer to the sector". Why does Federation Uni back it?

Federation University has welcomed Peter Dutton’s announcement that international student numbers will be capped under a Coalition government – despite the proposed plan being described as a “sledgehammer to one of the nation's biggest income generators".

Federation University, which has campuses in Ballarat, Ararat, Berwick, Horsham and Gippsland, released a statement saying the announcement recognised the distinct role regional universities played in serving learners who lived outside of big cities.

Under the proposal, an elected Coalition government would reduce the number of new international students starting study each year to 240,000 in a bid to tackle the housing crisis. The figure is 30,000 less than Labor proposed last year.

The Coalition said it will work to “prevent any unintended consequences for universities with regional campuses”.

The reduction will particularly impact the Group of Eight universities, which includes the University of Sydney, the University of Melbourne, and the Australian National University. Student visa application fees would also be increased to $5,000 for overseas students at Group of Eight institutions. All other students would be charged half that.

A Federation University spokesperson told the Brolga they looked forward to further details on the proposal to determine its exact impact, noting the announcement specified that the proposed cap would not adversely impact regional universities.

“Federation supports fair and reasonable international student limits that level the playing field for regional universities, which face far greater financial challenges compared to their metropolitan counterparts, due to thinner markets and geographical constraints,” they said.

“Regional and outer suburban universities play a vital role in providing accessible education pathways for local communities, and preventing regional skills shortages.”

Federation University vice-chancellor, Professor Duncan Bentley, encouraged changes to international student policy and said they should be complemented by initiatives to boost domestic student enrolments. Professor Bentley 

“International student policies create greater certainty for us to make Federation sustainable, but we must have a conversation about domestic student policy,” he said.

Group of Eight (Go8) chief executive officer, Vicki Thomson, told the Brolga almost two thirds of all Go8 international students were post-graduate students studying in disciplines where Australia had the highest need including engineering, IT science, health, and agriculture.

She said if visa fees were increased at Go8 institutions, these students would simply opt to study at competitor countries.

“These international students choose to study at a global top 100 university and policies to triple visa fees for Go8 students will not see a redirection of talent to other Australian universities. They will opt to study at other top research universities in competitor countries.” 

Universities Australia has said the proposed cuts and increasing visa fees would only serve to damage the economy, not solve the housing crisis.

Universities Australia chief executive officer, Luke Sheehy, said international students contributed over $50 billion to the economy and slashing student numbers would “take a sledgehammer to one of the nation’s biggest income generators”.

Sheehy said using international students as scapegoats in the housing debate was not the solution.

“Students make up less than six percent of the national rental market. The real solution is more homes, not fewer students.”

Education Minister, Jason Clare, described the announcement as a "con".

"Last year, Peter Dutton's reckless arrogance killed international student caps and in the process he killed his credibility," he said.

"This isn't an international student cap, it's a con."