Australia’s universities are pushing back against a government proposal to cap international student enrolments, warning that the policy will derail their construction of desperately needed student housing.
In submissions to the federal Department of Education, several of the country’s leading universities say the proposed caps — intended to ease housing shortages exacerbated by a recent influx of international students — will in fact worsen the housing crunch by undermining their ability to predict future enrolment numbers.
That, in turn, will make investors wary of financing long-term housing projects on campuses.
The proposed caps now jeopardise current housing plans - ‘wreaking havoc on the sector’.
“Already, we are hearing reports that developers of student accommodation facilities may walk away from new projects,” says a submission from the University of Sydney, the nation’s oldest university.
“Typically, a five-year timeline is required from site selection to opening of a new student accommodation facility.”
The university says it is creating between 2,000 and 3,000 additional student housing beds over the next five years, having spent 220 million Australian dollars (£115 million) on accommodation since 2015.
With international enrolments soaring after pandemic-related disruptions, housing availability has grown increasingly dire, prompting the government’s proposal to limit the number of foreign students that universities can enrol.
But the universities argue that the caps are unnecessary, as student visa numbers have already fallen dramatically since last year.
They also warn the caps could have catastrophic consequences for their finances.
Universities rely heavily on the higher tuition fees paid by international students — accounting for 44 percent of income at Sydney last year, for example — to fund core operations like teaching, research and construction of new facilities.
The University of Sydney enrols over 35,000 foreign students, more than any other Australian university.
“The proposed caps would be the most significant change to Australian international education since Canberra began encouraging foreign enrolments at scale in the late 1980s,” Sydney’s submission states.
Mark Scott, Sydney’s vice-chancellor, cautioned of “very damaging flow-on consequences for local communities, jobs and economic growth” if the caps are implemented hastily.
“Acceptances are starting to flow in, with students making deposits towards their fees, accommodation and other arrangements.
“Limits on 2025 enrolments will be challenging for universities to implement without seriously disrupting thousands of students and potentially putting us in breach of contractual obligations.”
The university is urging at least a one-year delay so it can adjust to the major changes.
The University of Melbourne joined the criticism, saying the caps should be postponed until at least 2026 to avoid “wreaking havoc on the sector.”
Michael Wesley, a deputy vice-chancellor, said implementing them for 2025 would cause “significant” job losses and reputational harm.
“These caps are penalising the sector for a temporary, larger-than-expected increase in student numbers due primarily to the pandemic lag effect,” Wesley said.
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