Labor"s immigration changes threaten struggling economy and society

Recent changes by Education Minister Jason Clare have capped the intake of foreign students at elite universities to 2019 levels, which is expected to halt growth in the university sector. This policy is problematic as full-fee-paying overseas students have been subsidizing losses at these institutions. The intention to reduce foreign student numbers to alleviate housing pressure may backfire, as students from elite universities are unlikely to accept placements at lower-ranked institutions. Instead, they may choose to study in other countries with better reputations. University administrators have expressed strong opposition to Clare's directive, warning that it could damage the reputation and world rankings of elite universities. They argue that the new quota system will lead to a decline in quality students studying in Australia, as only lower-quality students may be left to fill the spots at lesser institutions. This could result in a significant financial strain on universities, forcing them to implement staff and faculty cuts to maintain financial stability. Moreover, the majority of overseas students at top universities do not intend to stay in Australia after graduation, while those at lower-quality institutions are more likely to seek residency. This shift could exacerbate the very issues the government aims to address. The university sector hopes that former Labor leader Bill Shorten will advocate for their concerns, but he has stated he will not participate in discussions on higher education while in government. If these policies are enacted, the long-term consequences could be detrimental to both the university sector and the broader economy, potentially leading to a decline in educational quality and international competitiveness.