It’s one that stands in stark contrast to the US and UK which are welcoming international students with open arms.

The UK’s new Labour education secretary Bridget Phillipson recently praised the ‘tremendous contribution’ international students make, saying she wants students from around the world to come to the country and build bonds and develop new skills.

“Be in no doubt: international students are welcome in the UK. This new government values their contribution – to our universities, to our communities, to our country,” Phillipson told a conference in the UK in July.

Her approach is a breath of fresh air after measures, including changes to visa conditions for international students, introduced by the previous Conservative government saw applications for courses starting this year plunge.

That drop in international student numbers is being linked to the financial difficulties now being faced by about a third of the UK’s universities – a fate that many of our own tertiary institutions face as a result of the federal government’s caps.

Meanwhile, in the US, two pieces of legislation have been introduced to congress – the Bipartisan Keep STEM Talent Act of 2023 and Keep STEM Graduates in America Act – in an attempt to streamline the process for international STEM graduates wanting to live and work in the US after they graduate.

Republican presidential candidate Donald Trump has also vowed to grant foreign students the automatic right to stay and work after they graduate if he is re-elected as president in November.

Unfortunately here in Australia, by proposing to cut the number of new international student commencements by 53,000 to 270,000 from next year, the federal government is turning its back on international students. It would do well to stop and learn a lesson from the US and UK, which both stand to benefit enormously from the many cultural and economic benefits that international students can bring to a country.

International students contribute to Australia’s economy

By capping the number of international students, Australia will lose valuable workers that are contributing to the local economy and helping to alleviate skills shortages. Student visa holders are eligible to work up to 48 hours per fortnight during their study session and on an unlimited basis during scheduled course breaks.

By capping the number of international students, Australia will lose valuable workers that are contributing to the local economy

Naresh Gulati, BPO Intelligence and Ascent One

The Department of Home Affairs rationalises this restriction to encourage students to prioritise obtaining a quality higher level qualification, while gaining work experience and contributing to Australia’s workforce.

The latest Universities Accord acknowledged that Australia isn’t currently meeting the skills needed in the workforce and framed the solution as ramping up the number of higher education and VET graduates.

Meanwhile, the Committee for Economic Development of Australia found the country needs to make use of skilled migrants to tackle skills shortages and boost productivity.

Australia’s reputation as an international education leader will suffer

Not only can international students provide a valuable contribution to our economy, but they are more likely to entice others to Australia if they are made to feel welcome and have a good experience here.

Word of mouth is a powerful tool and has helped build Australia’s reputation as a world-leading place for tertiary education over many years.

However, all the great work our country has done to build up its education sector to be an export success could be undone because of the caps. Australia should instead be following the US and UK and trying to attract more international students.

Australia’s loss will be their gain.