Proposed Limitation on Immigration in Australia Deemed "Shortsighted"

Critics condemn Australia's proposed immigration cap as "shortsighted", warning of potential negative consequences for the nation's economy and society. Analysis from the Group of Eight in Australia has found “no direct link” between international students and the nation’s current housing crisis.

The organization's latest policy brief attributes housing affordability and the broader cost-of-living crisis to supply-side issues rather than problems related to international students. This stance follows a report from Australia's PBSA organization, which found that overseas students have been unfairly blamed for the country's rental crisis. The brief coincides with increasing discussions in the national media about potentially implementing a cap on international student numbers, similar to the one introduced in Canada earlier this year. Although some suggest an informal cap exists due to slow visa approval rates, key sector stakeholders have rejected the idea of a formal cap. Despite acknowledging stronger demand for housing in certain inner-city areas, the Group of Eight (Go8) and purpose-built student accommodation providers are investing heavily in affordable options.

According to Go8's chief executive Vicki Thomson, the number of international student arrivals does not directly affect underlying supply-side factors. These factors include decades of underinvestment, government regulations, planning approvals, construction costs, supply chain disruptions, and weak productivity growth. Thomson emphasizes that regardless of international student intake, Australia would still face a housing crisis, and solving supply issues takes time. She argues that imposing a cap on international students to alleviate housing pressure, especially during a domestic skills crisis, is shortsighted and risks hindering Australia's economic growth.

Julian Hill, outgoing co-convener of the federal government's Council for International Education, warns against a hard cap on international student numbers, citing negative implications for Australia's global reputation, human capital, talent pipeline, soft power, academic excellence, and research. Thomson points out that in Canada, stakeholders have highlighted negative implications such as labor market sustainability, diversity, and meeting the needs of high-growth sectors.

Thomson states that Go8 would outright reject a cap, as some regional locations need more international students. While the government has promoted regional Australia to international students, it previously considered scrapping additional points awarded to visa applicants who studied in regional areas but did not implement this change. The government's migration strategy clarifies that Temporary Graduate visa holders can only extend their visas if they are in select regional areas.

As one of Australia's major export success stories, international education contributed significantly to the economy in 2023, according to National Australia Bank calculations. Thomson emphasizes that Australia competes globally for top international students who contribute to the country's knowledge economy. There are concerns that a visa hike included in the May budget could deter students from enrolling in Australian universities. Sector stakeholders fear that visa rejection rates are impacting student interest, leading to appeals to the Minister for Home Affairs to address concerns around refusals, delays, transparency, inconsistency, and inequity in visa decision making.

Peak bodies warn of lasting damage to the economy, balance of trade, and the country's reputation as a study destination. They highlight the impact on jobs and financial strain on organizations. They also note the effect of migration strategies on high-quality providers and the need to target and retain high-quality students to address skills gaps and boost sovereign capability.

Source: The Pie News‍