“Victoria’s biggest export”: how an international student cap would affect Melbourne

The City of Melbourne and its local universities are preparing to navigate uncertain times as the possibility of an international student cap remains a concern ahead of the upcoming federal election.

The federal government’s proposed student cap, which aimed to reduce enrolments to a maximum of 270,000, was blocked by the Liberals and Greens in the last week of parliament in December. However, a few weeks later a new visa processing directive, Ministerial Direction 111 (MD 111), was introduced.

The directive allows visa applications to be prioritised for international students coming to study at Australian education providers. However, once 80 per cent of a provider’s indicative allocation is reached, student visas are no longer prioritised.

“There remains considerable uncertainty about the precise details of the government’s approach to enforcing restrictions on student numbers,” a spokesperson from the University of Melbourne told Inner City News.

In the meantime, the University will continue to do everything it can to prepare for the short- and long-term impacts of this proposed policy change.

International students currently account for 45 per cent of the University of Melbourne’s student population, while they make up 24 per cent of the Royal Melbourne Institute of Technology’s (RMIT) onshore cohort.

RMIT University vice chancellor and president, Professor Alex Cameron, said, "we want to ensure equity and inclusion at our universities so that international student numbers are spread across universities around the country.”

While Labor’s contentious cap was blocked, Liberal Opposition Leader Peter Dutton believes it did not go far enough.

Speaking at his campaign launch in the Victorian electorate of Chisholm on January 12, he said, “we will work with major metropolitan universities to set stricter caps on foreign students to relieve pressure on city rental markets.”

Lord Mayor Nick Reece said that he didn’t support a student cap and that he wanted more students in Melbourne due to the economic and social benefits they brought to the city.

“International education is Victoria’s most significant export – that’s why we’re working to support and attract even more international students,” Cr Reece said.

The council’s innovation and education portfolio lead Cr Andrew Rowse believes that due to uncertainty surrounding future legislation, there was a lot of “stress and anxiety” within the sector.

The University of Melbourne has international appeal due to its high ranking, according to Cr Rowse, who said that if a cap were to be introduced prospective students may choose to study in another country because they would be unable to attend a prominent Australian university.

He also noted that many international students lived within the City of Melbourne, and that for every dollar spent on tuition fees, international students spent around two dollars in the local economy.

Currently, the City of Melbourne can accommodate up to 22,500 students in purpose-built student accommodation, and since 2017, the council has approved or provided support for 33 student accommodation developments.

Federal MP for Melbourne and Greens leader Adam Bandt said, “Melbourne’s universities are among the most highly regarded in the world, and the international students who attend them make up such an important part of our city’s vibrant, multicultural community.”

“Labor must now go back to the drawing board and come up with a plan that fully funds universities, tackles insecure work and casualisation, and wipes student debt, making uni and TAFE free.” •