Australian universities could be halted from climbing the global rankings ladder by the federal government’s plan to limit how many international students can study in Australia.
World-leading credit rating agency S&P Global has sounded the alarm on legislation that would set caps on each university and vocational trainer, restricting the number of international students they could accept unless they also agreed to build more dedicated student accommodation.
In a report, S&P said those caps would eat into university profit margins, put the top uni credit ratings at risk, and halt their advance up global ranking ladders.
“A government proposal to cap foreign enrolments could hit Australian universities hard. This is because the country’s university sector is among the most dependent in the world on international student revenue,” the agency said.
“If enacted, the legislation would crimp operating margins, choking funding for research and halting the advance of Australian tertiary institutions up global rankings.”
‘Visa hopping’ students to be cut off from July
The federal government introduced proposed laws to restrict migration in response to a surge of students post-pandemic, alongside an influx of other migrants that has led to an extremely tight housing market after years of sluggish construction activity.
Overnight the government announced further tightening to lock out “visa hopping” from July for students who continuously extend their stay in Australia.
The government’s Migration Strategy last year found the number of students staying in Australia on a second or subsequent visa had grown by more than 30 per cent to 150,000 people last financial year.
After July, visitor and temporary graduate visa holders will not be able to apply for student visas onshore, meaning graduates from overseas will need to find skilled jobs and apply for permanent residency if they wish to stay.
“The migration system we inherited was completely broken, and our goal is to build a smaller, better planned, more strategic migration system that works for Australia,” Home Affairs Minister Clare O’Neil said in a statement.
The university sector has previously warned the planned migration crackdown could cost thousands of teaching and research jobs across tertiary institutions.
Universities Australia’s chief executive Luke Sheehy said last week the government and opposition were “openly targeting” international students to neutralise a battle over migration at the next election.
Mr Sheehy said that the “bipartisan attacks” would leave a funding shortfall that could cost as many as 4,500 jobs across the sector.
“That would mean more people out of work during a cost-of-living crisis, driving up unemployment and adding further pressure to the government’s budget bottom line,” Mr Sheehy said.
“The nation would have slipped dangerously close to recession if not for the rapid return of international students.”