A key government concern is that the total number of international students in Australia grew 15 per cent to 671,000 over the year to the end of March, with the overwhelming majority living in Sydney, Melbourne and Brisbane.
This included 128,000 students from China, 117,000 from India and 59,000 from Nepal.
Clare plans to introduce a draft law to parliament this week to create a new power to set a maximum intake for education providers and, if necessary, tell them how many overseas students they can take in specific courses.
The government has rejected the approach taken in Canada, where the cap on student numbers is specified in the legislation, and will instead negotiate with universities, private colleges and vocational education providers on rules that will give the minister the power to set the cap.
The government’s draft framework emphasises the need to diversify the student population by finding other country sources, mentioning South America and the Indo-Pacific.
“Improved market diversity is one of those solutions,” it says.
“Within the bounds of international population shares and demand for international education, there is more we can do to improve our source market diversity. Demonstrating the value of Australia’s offerings more broadly can encourage more balanced patterns of student enrolments – regardless of their country of origin.”
Scott said the University of Sydney was already looking at its overseas student mix but did not think the government wanted to halt the growth across the sector.
“Let’s develop measured strategies for growth. Let’s do nothing to spook the market and give any suggestion to international students that they’re not welcome in Australia,” he said.
Credit: Matt Golding
“I think the question is not about cutting back, the question is how measured the growth should be.”
Farrell said La Trobe already had four campuses in regional Victoria that could expand in areas such as healthcare, while also offering the potential to build housing for students in areas that did not add to major city congestion.
“Any system that aims to achieve sustainable growth is better than the current one, so I welcome these changes,” he said.
Farrell said the current system made it easier to attract students from China into business courses because their visas were approved at a higher rate and faster speed compared with applicants from other countries who might go into healthcare courses.
Bringing someone to Australia to train as a nurse was also more ethical than trying to attract a skilled worker who was already working as a nurse in another country, he added.
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O’Neil and Clare’s meeting on Monday with the Council for International Education was also attended by Skills Minister Brendan O’Connor and Immigration Minister Andrew Giles.
International Education Association of Australia chief executive Phil Honeywood, who was at the meeting with ministers, said the discussions backed the growth of the sector but were aimed at reducing its pace.
The government planned the January 1 start date to allow time for consultations with the sector and for the draft law to be put to parliament this week and decided over several months, after a likely Senate review that will help determine if it gains support from the Coalition and the Greens.
The draft law adds to other changes in the federal budget on Tuesday, including an increase in student visa application fees from $700 to about $1400. While this change is expected to raise $1.2 billion, it lifts the Australian fee above other countries. The United Kingdom charges a visa fee of £490, or about $930.
The government also moved last week to increase the financial threshold for new students by asking them to show they had $29,710 in savings, up from the previous benchmark of $24,505.
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