Cap on international students enrolment threatens Victorian economy

A survey by SPP Consulting of Monash University and the University of Melbourne has suggested that the government's proposed introduction of caps on universities’ foreign student enrolments is going to destroy the Victorian economy.

The University of Melbourne stated that an independent analysis has suggested that the proposed introduction of caps on universities’ international student enrolments will have damaging effects on the Victorian economy.

SPP Consulting for Monash University and the University of Melbourne has prepared the analysis and found that Victoria's economy gets $27.4 billion contribution from Victorian public universities. The staff and students of these universities contribute $15.4 billion in consumer spending on entertainment, clothing and food.

While reiterating the harms, this cap can have on the state's economy, Deputy Vice-Chancellor, Global, Culture and Engagement at the University of Melbourne, Professor Michael Wesley said, “Victorian public universities' direct contribution to gross domestic product in 2023 was $6.7 billion, representing 1.2 per cent of total economic activity in the state. The potential loss of income from the proposed caps will place an additional burden on our federal budget, which will in turn impact our state’s budget, and our ability to fund important services and infrastructure for all students. Critical services like healthcare are already being cut in Victoria due to funding pressures. These proposed caps will only do more harm to our state."

Monash University Deputy Vice-Chancellor (International) Professor Craig Jeffrey said “Limiting the entry of international students to world-leading universities risks damaging the Victorian economy, vital research, and our standing and impact in the region,” said Professor Jeffrey."

“Capping international students will deprive the sector of revenue and thereby undermine life-saving medical research. We depend on a flow of brilliant international students for this vital research to be funded and delivered. One of the wonderful things about living and working in Victoria is that we get to interact with international students. They are crucial to the social, intellectual and cultural life of our state, and this report demonstrates they are also absolutely critical for our economy,” added Professor Craig Jeffrey.

Economic benefit is under threat, says analysis

The analysis suggested that if the Australian government goes ahead with its plan, the economic benefits are under threat. Capping the enrolment numbers of international students will also affect many small businesses which are still struggling to recover from the pandemic downturn. It will put many service industry jobs at risk, said the official statement.

The Australian university sector wants the government to rethink their plan of capping enrollment numbers of international students.

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