Australian Universities Warn Visa Reforms Could Jeopardise $48 Billion Education Sector Ahead of Federal Election
Australia's $48 billion international education industry is preparing for potential disruption ahead of the federal election on May 3, 2025. The Liberal-National Coalition under Peter Dutton has released sweeping reforms targeting international student visas, such as enrolment limits, increased visa fees, and tighter post-study work rights.
Several of the nation's best colleges, especially those in the Group of Eight, are raising concerns about long-term effects, even if these ideas are meant to reduce migration and alleviate housing pressure. From economic fallout to reputational damage, institutions say these changes risk undoing decades of progress in making Australia a preferred destination for global talent.
“We’re Ready to Work with the Government”: University of Sydney Responds
Vice President (External Engagement) of the University of Sydney, Kirsten Andrews, emphasised that international education contributes far more than just dollars.
“Australia’s strong international education market brings benefits that go far beyond the obvious boost to our economy and funding for education and research,” she said. “Graduates from our universities often maintain a lasting affection for Australia, fostering enduring global relationships.”
The University of Sydney acknowledges growing public concern about international student numbers but believes policy changes must be carefully managed.
“We’re listening to the concerns of our community about the optimal mix of students on campus and are ready to work with the government to ensure universities can continue their role as vital institutions educating future leaders and driving research and innovation.”
Andrews also addressed the confusion caused by shifting visa policies, stating, “We’re aware that changes to the visa system and the ongoing lack of clarity for students are causing confusion and diminishing confidence in Australia as a desirable and reliable destination for high-quality tertiary education services.”
She concluded with a forward-looking reminder: “We know the majority of future jobs are likely to require a tertiary qualification, and to achieve this, we need to work together to plan for managed growth.”
Adelaide University: International Students Are Central to South Australia’s Growth
The soon-to-be-established Adelaide University—formed from the merger of the University of Adelaide and the University of South Australia—stressed that international students play a vital role in the state’s economy and community.
“The University of Adelaide and the University of South Australia are joining forces to become Australia’s new major university—Adelaide University,” a spokesperson said. “Building on the strengths, legacies, and resources of two leading universities, Adelaide University will deliver globally relevant research at scale, innovative, industry-informed teaching, and an outstanding student experience.”
The spokesperson noted that international education is not just an academic matter but South Australia’s leading export sector.
“Not only is it our top export—the first export sector to ever exceed the $3 billion mark—international students also make a significant contribution to South Australia’s workplaces and community.”
Adelaide University is set to open its doors in January 2026 and plans to grow its international student body significantly.
“From inception, Adelaide University will have a diverse student population with international students from more than 100 countries. Adelaide University is projected to educate an extra 6,000 international students in 2034, resulting in a contribution of more than $360 million per year to the South Australian economy.”
The university added that they remain committed to offering scholarships to make education accessible and look forward to working “constructively with the Australian Government to ensure our international education sector continues to thrive while supporting state and national priorities.”
“A National Asset”: University of Melbourne Emphasises Global Role
The University of Melbourne reaffirmed the importance of Australia's educational program on a worldwide scale while echoing concerns about the planned modifications.
“International education is a prized national asset, contributing significantly to Australia’s economic, social, and diplomatic success, and something of which we should be proud,” said a university spokesperson.
They also pointed out that international students are central to the institution’s identity.
“International students are intrinsic to our purpose as a university and to the breadth, diversity, and vibrancy of our community and its work. We will continue doing everything we can to ensure the University of Melbourne remains a destination all international students will want to choose well into the future.”
University of Queensland: Prioritising Sector Sustainability
The University of Queensland adopted a collaborative tone, affirming its commitment to the long-term strength of Australia’s education system.
“The university is committed to maintaining the quality and sustainability of Australia’s higher education sector and working with the government to achieve this,” a spokesperson said.
While policymakers weigh the political gains of immigration control, universities warn that the global fallout could be far-reaching. With Canada and the UK already tightening student visa rules, Australia stands to lose market share in a growing global education market.
The Group of Eight universities contends that their international reputation and research ability largely hinge on securing international talent. The rise in visa fees, which would impact these institutions the most, would act as a deterrent when the demand for Indian and other Asian students is as high as it currently stands.
As the day of the elections approaches, colleges are urging the politicians to be more balanced in their approach. While they sympathise with the need to control migration, they warn against steps that would dismantle one of the country's most successful international industries.
Education leaders are calling for increased clarity, measured reforms, and ongoing cooperation to safeguard Australia's position as a leading study destination—and to ensure international education continues to be a bridge between the world and Australia, not a barrier.
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