Mass Layoffs of Thousands Loom as Labor Government’s Student Cap Wrecks Australia’s Education Sector

Mass Layoffs of Thousands Loom as Labor Government’s Student Cap Wrecks Australia’s Education Sector

The Labor government’s reckless decision to cap international student numbers is leading to mass layoffs of thousands, devastating Australia’s education sector and wreaking havoc on the economy. Since the introduction of this disastrous policy, universities and registered training organisations (RTOs) have been pushed to the brink, with financial losses mounting and jobs vanishing at an alarming rate.


Universities on the Brink of Collapse

The scale of destruction is staggering. Institutions like the Australian National University (ANU) are staring down the barrel of A$22 million in lost revenue due to next year’s enrollment quota, which slashes 572 international student admissions. These financial shortfalls are already forcing mass layoffs, with 50 jobs on the chopping block this year alone—and it won’t stop there. The National Tertiary Education Union (NTEU) has warned that these cuts are merely the beginning, with 638 full-time jobs at ANU in danger as the university targets A$100 million in salary savings.

Meanwhile, Federation University, which suffered an A$81 million deficit, expects the student cap to cost A$47 million by 2027. This regional institution has already cut 163 positions, a staggering 10% of its workforce, and universities across the country are following suit, slashing jobs and scaling back operations in the wake of this senseless cap.


RTOs Strangled by Limited Student Numbers

The student cap is not only wreaking havoc on universities—it’s also strangling Australia’s RTOs. These training organisations are equipped to serve thousands of students, boasting state-of-the-art campuses, world-class facilities, and industry-leading equipment. Yet, the labor government has tied its hands by limiting its intake to a fraction of what it is capable of, leaving these institutions to fight for survival.

The impact on jobs is catastrophic. With mass layoffs already happening and many more on the horizon, RTOs are struggling to maintain the quality of education and support services they are renowned for while being forced to turn away eager students. This is a direct assault on the vocational training sector, which has long been a cornerstone of Australia’s workforce development.


Economic Devastation: The True Cost of Labor’s Cap

The Labor government’s student cap is not just causing chaos in education—it’s also inflicting serious economic harm on Australia. The Reserve Bank of Australia has issued dire warnings that the cap will stifle services exports and trigger a downturn in student arrivals, ultimately slowing population growth and shrinking the economy.

Estimates show that this policy is costing Australia A$19 million every single day. By the time the Senate reconvenes in November, the country will have lost a staggering A$722 million. Institutions like Charles Sturt University and Victoria University are already reeling, with tens of millions in losses, and industry experts predict total sector-wide losses of between A$650 million and A$750 million.

 

A Cap by Stealth, A Policy of Destruction

Labor’s decision to impose this cap is a blatant act of sabotage—a cap by stealth that is crippling Australia’s education sector and economy. The visa processing delays and soaring refusal rates are driving international students away, threatening to destroy Australia’s global reputation as a top destination for education. Universities are being starved of the revenue they rely on, while regional institutions are being decimated.

With mass layoffs looming, job losses spreading across the sector, and RTOs at risk of closure, this government is running Australia’s once-proud education system into the ground. The Labor government, led by a Prime Minister with no real-world business experience, is making decisions that are destroying jobs, crushing livelihoods, and bleeding the country dry.


Time to Reverse This Catastrophe

Australia’s education sector is on the brink of collapse, and the mass layoffs of thousands are just the beginning. The student cap is a policy failure of epic proportions, one that will cost this nation jobs, economic growth, and global standing. It’s time for the Labor government to wake up, reverse this catastrophic decision, and start listening to the experts before it’s too late. If they don’t, they will be remembered as the government that destroyed one of Australia’s greatest assets—and the thousands of jobs that went with it.
Back to blog