

Why cap the number of university students from abroad?
April 14, 2025
Having been unable to pass legislation, the Albanese Labor Government (as it likes to be called) decided in 2024 to use the “slow student visa process” to reduce international student numbers because of the problems they cause in taking houses and jobs from Australians.
The Dutton Coalition proposes to reduce international student numbers even further. But what is the logic of reducing numbers?
Housing: Most international students will want to live on or near campus, and generally will use residences unsuitable for local families, so there will be little or no impact on housing rentals in general as noted in The Guardian recently. Any impact will be localised so the students are in fact not “taking our houses”.
Jobs: Such international students also do significant casual work in hospitality, low-skilled or manual labour jobs, and such work is not much favoured by locals who seek more substantial employment, so the students are not “taking our jobs”.
So much for the possible negative aspects which are clearly minimal. But what about the positive contributions?
Living expenses: An international student will spend perhaps $15,000 to $20,000 each academic year on living expenses, and the same again on housing rental, and this benefits local businesses.
Academic fees: An international undergraduate student will spend about $50,000 each academic year on fees, compared to the total expenditure for a HECS supported student which is approximately $30,000 (comprised of HECS and the Commonwealth contribution). For many universities, about one in four are international students. It follows that each local student is being subsidised by about $5000 each year by international students, so there is a benefit to Australian students who would otherwise have to pay more HECS themselves, or to have increased support by the Commonwealth (the taxpayer). These numbers are approximate, but show the clear benefits to Australian students.
Research contributions: International Masters by Research or PhD students pay fees similar to undergraduates, and these contribute to the general support of research infrastructure, but the students also make substantial academic contributions to the research output, enhancing the reputation of our universities globally and also enhancing the benefits to society.
Cultural contributions: Understanding the myriad habits and differences of tens to hundreds of different cultures is a unique experience for Australian students, which will help them mature in a positive way, reducing the possibility of xenophobia and enriching their ability to work in international environments in future.
International diplomacy: International students returning home with a (hopefully positive) experience of Australian life while studying and living in Australia will view potential future interactions with Australia/Australians with optimism, enhancing Australian standing in the world. Notwithstanding the present tendency of some world “leaders” to isolationism, Australia needs to build its international links, especially in Asia, as this is where we exist.
Foreign currency earnings: In terms of relative standing, international student expenditure comprises the second largest foreign currency earnings in Australia, behind only the mining industry. This helps underpin our ongoing standards of living.
So there is no logic to the political attitudes. Perhaps the Albanese Government and the Coalition are playing trivial games of status, or deflecting the real issue of their lack of future planning, but even so, it is difficult to understand from where such stupidity arises.

Jason Middleton
Jason Middleton is an Emeritus Professor at the School of Aviation, UNSW, and has extensively researched coastal ocean processes and erosion.