Jeremy Gill, Head of Policy of the Committee for Sydney:

“This decision has the potential to seriously damage Australia’s economy and global standing.

“International students bring more than just their study fees, with immense soft power benefits to be gained from our international education programs.

“Graduates go back to their home countries as ambassadors for Sydney and nation, and their experience in classrooms and communities here fosters deeper understanding of diverse cultural perspectives.

“This legislation sends prospective international students the message they’re not welcome to study here in Australia.

“The reality is there are far more opportunities outside Australia than inside it – it’s to our advantage for us to bring the talent of the world to our shores to engage in education, trade, commerce and cultural understanding.

“We acknowledge the need to address Australia’s housing crisis, but this focus on international students is not the right approach.

“Government should focus on getting the right outcome, instead of rushing the process and risking getting things wrong.

“International students due to start next year are already in the pipeline and receiving offers. It will be politically and diplomatically difficult to influence the 2025 academic year intake, with huge costs to universities and businesses that rely on international students.

“These cuts may also mean universities have to scale back their investments in low-income support and programs that are cross-subsidised by international education, which will impact on the equity of our city.

“We run the risk of squandering the goodwill built through the Universities Accord process by rushing bad legislation through.

Background: international education delivers critical economic benefit to Australia
International Education is Australia’s third largest export, and our largest service-based export.
International education represents a significant economic driver for our nation, being Australia’s most valuable export industry outside of mining. While studying here, international students contribute to two-thirds of international tourism spend ($40bn of $59bn).
Only 45% of international student export income goes to universities, with the rest going to spending on goods and services outside universities – with significant benefits for local small businesses.
For example, a Mitchell Institute study in 2020 estimated that international students in Kingsford, around UNSW, spent $335 million on food, accommodation and other services per year. International students are also important brand ambassadors for Australia.
Their connections with Australia while studying create long term connections for tourism, trade and investment with their home countries and is an important part of Australia’s soft diplomacy efforts abroad and they bring diverse, international perspectives into classrooms.
International education currently also provides important subsidy to university research for a number of universities. The research being undertaken in Australia’s world-leading universities will be critical for the future of Australia’s economy – and intrinsically tied to the goals set out in the Australian Government’s Made in Australia policy, alongside programs such as the National Reconstruction Fund.