The Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 is poised to have far-reaching and destructive consequences across Australia’s education sector and the broader economy. Marketed as a mechanism to address issues of governance and sustainability in the international student sector, the bill is instead an unprecedented intervention that threatens to destabilise Australia’s international education industry, harm small businesses, and exacerbate unemployment. Rather than safeguarding the integrity of education, this bill will likely lead to catastrophic outcomes, including the decline in rankings of Australian institutions, the shutdown of reputable providers, and the loss of thousands of jobs across multiple sectors.
Decline in Rankings of Australian Institutions
One of the most alarming impacts of the bill is its likely contribution to the decline in global rankings of Australian institutions. Australia has long been a global leader in international education, with universities like the University of Sydney, University of Melbourne, and Australian National University consistently ranking among the top institutions worldwide. International students, whose enrolment fees and academic contributions are vital to these universities, have helped build and maintain their reputations.
However, the imposition of student enrolment caps, especially at the course level, threatens to choke the flow of international talent into these institutions. With reduced student numbers, universities will struggle to maintain the level of research output, innovation, and academic diversity that have helped them climb global rankings. The impact will be felt most acutely by smaller and regional universities, which already face financial strain and depend on international students to remain competitive. This bill, instead of promoting education quality, places Australian institutions at risk of falling behind their global counterparts in academic reputation and research.
Slowing of International Student Numbers
The bill introduces significant restrictions on international student enrolments, stifling a sector that has been one of Australia’s most valuable economic engines. The slowing down of student numbers under this legislation is particularly troubling, as international students are not just contributors to university funding but also drivers of Australia’s broader economy. According to recent statistics, international education contributes over $40 billion annually to Australia’s GDP. These students pay tuition fees, rent homes, buy goods, and use services across various sectors, generating demand that fuels growth.
By capping enrolments and introducing complex regulations, the bill will deter potential students from choosing Australia as a study destination. This will have a ripple effect, reducing demand for services such as accommodation, retail, and tourism. Additionally, the policy’s rushed implementation timeline, without adequate consultation, creates uncertainty for providers and students alike. Many international students may opt to study in other countries that offer clearer, more supportive policies, such as Canada or the UK, further slowing student numbers and undermining Australia’s position as a preferred destination for global talent.
Shuttering of Good Providers
The bill also places Australia’s education providers—especially private institutions—at risk of shutting down. Private higher education and VET providers play a critical role in delivering specialised programs and training in areas such as healthcare, technology, and trades. These providers often cater to niche markets, offering tailored education that serves both international and domestic students. However, with the introduction of enrolment caps and increased regulatory oversight, many of these providers will find it impossible to remain financially viable.
The disproportionate impact of Ministerial Direction 107 and now this bill will likely force reputable providers to shut their doors, unable to navigate the burdensome bureaucracy and shrinking student enrolments. The consequences will be devastating, not only for the providers themselves but also for the thousands of students who rely on these institutions for education and training, particularly in high-demand fields such as nursing and aged care.
Loss of Thousands of Jobs
One of the most damaging outcomes of this bill is its potential to cause widespread job losses across multiple sectors, not just education and training. International education is a major employer in Australia, supporting jobs not only in universities and private colleges but also in sectors like accommodation, hospitality, and transport. The dramatic reduction in student numbers resulting from this bill will lead to a corresponding reduction in employment opportunities.
Universities, especially those that have come to rely on international student revenue to subsidise domestic education and research, will be forced to cut back on staff. Private providers, already operating on tight margins, will face immediate job losses as enrolment caps are enforced. Beyond the education sector, industries that cater to the needs of international students—such as rental markets, retail, and healthcare—will also experience job cuts as demand for services dwindles. The combined effect will result in thousands of Australians losing their livelihoods, exacerbating the already strained economy.
Broad Economic Fallout
The economic fallout from this bill extends far beyond education. As international student numbers decline, the housing crisis—one of the justifications for introducing this bill—will not be resolved. Instead, the loss of rental income from international students will hurt landlords and the construction industry, which has invested heavily in building student accommodation. Furthermore, businesses that have flourished around international student hubs will see a downturn in revenue as fewer students arrive and spend money on goods and services.
The bill also risks damaging Australia’s reputation as a leading global education hub. By implementing restrictive policies that limit the growth of international education, Australia is sending a message to the world that it is no longer open for business. Countries such as Canada, the UK, and New Zealand, which have been quick to recognise the value of international students, will likely capitalise on Australia’s loss, attracting students who would have otherwise chosen to study here. This will further compound the negative economic effects as Australia’s international education sector shrinks and loses competitiveness on the world stage.
Destruction of Private Education Providers
Private education providers are particularly vulnerable under the bill’s provisions. These providers, many of which operate as small businesses, contribute significantly to Australia’s economy by offering flexible, accessible, and high-quality education to both international and domestic students. However, the proposed enrolment caps and ministerial powers will disproportionately affect these institutions, many of which are already grappling with the economic challenges of post-pandemic recovery.
Without the financial buffer that larger universities enjoy, private providers are at risk of collapse. This will not only lead to the loss of jobs but also reduce the availability of education options for students, particularly those in regional or specialised fields. The bill, which purports to ensure quality and integrity, will ironically lead to the destruction of some of the very providers that have upheld these values for years, further eroding Australia’s education landscape.
A Path to Ruin for Australia’s Economy
In conclusion, the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 represents a catastrophic misstep for Australia. Rather than improving the sector, it threatens to dismantle one of the country’s most valuable industries, with devastating consequences for education providers, small businesses, and the broader economy. The bill’s rushed and ill-conceived provisions, including enrolment caps and ministerial overreach, will slow student numbers, drive reputable providers out of business, and cause widespread job losses. It is imperative that the government rethinks this approach before irreparable damage is done to Australia’s economy and international reputation.
Australia must remain a global leader in education by fostering growth and innovation, not stifling it with restrictive policies. Only by engaging in meaningful consultation with stakeholders and addressing the real challenges faced by the sector can the country hope to maintain its standing as a top destination for international students while supporting the economic well-being of all Australians.
