The impossibility of the minister setting caps for every course, the danger of granting him such overarching powers, timing issues of implementing the caps by January 1, 2025, and immigration challenges linked to processing times were some of the major criticisms directed at the government. 

Stakeholders also claimed there had been a lack of consultation with the sector and that the amendments to the Education Services for Overseas Students Act were in fact migration policy masquerading as education policy.  

“We believe the bill drafted is more a political smokescreen than an instrument of good policy as the government seeks to gain an upper hand in the battle of migration ahead of the next election,” Universities Australia chief Luke Sheehy told the hearing.  

In an apparent leak the night before the hearing, the Australian Financial Review reported that the cap would limit institutions to enrolling a maximum of 40% of their students from overseas, with caps lasting two years and figures based on 2019 levels.  

At the hearing, Independent Higher Education Australia CEO Peter Hendy pointed out that such a cap would be an “existential threat” to private institutions that teach predominantly international students and receive no government funding.

Scores of vice chancellors, business leaders, students and unions warned that the legislation was an “over-reach” that would have dire consequences for the sector and the wider Australian economy.  

“Whilst the sector represented well, and the committee has plenty to chew through – given the current politicisation of migration in the lead-in to our next election – we would be naïve to assume a significant change of direction with this legislation is likely,” Neil Fitzroy OIEG Australasia managing director told The PIE News. 

We believe the bill drafted is more a political smokescreen than an instrument of good policy

Luke Sheehy, Universities Australia

Speakers emphasised the importance of international student funding supporting the entire sector, warning that the legislation could threaten the jobs of 14,000 academic staff. 

The government has said the legislation is to ensure “there is no place for dodgy operators” and has pointed the finger at international students for adding to Australia’s rental crisis.  

However, universities warned that the measures would harm legitimate providers’ economic activity and tarnish Australia’s reputation as an international study destination, which has already been damaged by politicised rhetoric.  

“If our global competitors were to design a bill that undermines the jobs, reputation, competitiveness, and the global market share built up by Australia’s higher education sector, it would be this bill,” Regional Universities Network executive director Alex Webb told the hearing.  

A second day of hearings had originally been scheduled for Wednesday 7 August, but The PIE understands that the second day will now be rearranged to a later date.  

Stakeholders notably omitted on the first day that are expected to be included in the second day of hearings were IEAA CEO Phil Honeywood and CEO of English Australia, Ian Aird.  

The report from the committee was originally due back to the government by August 15, but the rescheduling of the second day, and the fact that queries taken on notice need to be received by August 20, have made this timeframe unrealistic.