Victoria’s Treasurer, Tim Pallas, has criticized the federal government’s plan to cap international student numbers, calling it a “fundamentally destructive” decision for the state’s finances. Education Minister Jason Clare announced that starting next year, international university enrolments will be capped at 270,000. While some universities may increase their international student numbers, others will be required to reduce them.

Economic and Educational Implications

Pallas warns that this cap could have serious negative effects on Victoria’s economy, particularly for universities that rely heavily on international student fees. Greens leader Adam Bandt has accused the government of masking a migration policy as an education policy and warned that cutting off this revenue without providing alternatives could adversely impact all students, both international and domestic.

Legislative Challenges and Opposition

The federal government may face challenges in passing this legislation through the Senate, with potential support from the Coalition still uncertain. Shadow Treasurer Angus Taylor has emphasized the need to balance immigration policies with housing and other critical services.

Impact on Education and Training

The proposed cap is expected to lead to a significant reduction in available spots for higher education and vocational training. Initial estimates suggest a decrease of nearly 35,000 places in higher education and around 97,000 in vocational training based on 2023 figures.

Reactions from Universities

Reactions from universities have been mixed. La Trobe University has welcomed the cap as a potential relief from previous restrictions that impacted its operations. Conversely, institutions such as the University of Sydney and the University of Melbourne have called for more clarity on the rationale behind the cap.

Industry and Economic Impact

Prof. David Lloyd, Chair of Universities Australia, has questioned the cap’s effectiveness, arguing that it undermines the role of international students in supporting Australia’s economy, research, and innovation. He believes that the proposal fails to recognize the importance of this sector.

Government’s Justification

Acting Prime Minister Richard Marles defended the cap, stating it is necessary for managing immigration more sustainably and ensuring that student visa policies are aligned with broader migration objectives.