Key facts
- Australian universities are struggling to fill international student places, with an average of two-thirds of allocated spots filled.
- Regional universities are disproportionately affected, with Charles Sturt University filling only 40% of its cap.
- Charles Sturt University estimates a $35 million revenue loss and has announced job cuts.
- Experts warn that declining international student numbers create "massive problems" for universities, as they are a primary source of profit.
- Financial deficits from fewer international students could impact services offered to domestic students.
- Government policies, including increased visa application fees and high refusal rates, are cited as deterrents.
Australian universities are facing significant financial challenges due to a sharp decline in international student numbers, with experts warning of "massive problems" for the sector. Universities are struggling to fill allocated places, particularly in regional areas, leading to revenue shortfalls and potential impacts on domestic student services.
Data from the Department of Education in October shows that, on average, universities are only filling two-thirds of their international student quotas. Only five public universities, all located in capital cities, have reached over 80% capacity.
Mike Ferguson, pro vice-chancellor of international students at Charles Sturt University, highlighted the severity of the issue for regional institutions. His university has filled just 40% of its cap this year, a 35% drop from the previous year, and is currently 20% below pre-pandemic international student volumes. Ferguson attributed this decline to government policies, including a significant increase in visa application fees to $2,500 and high visa refusal rates, particularly for students from South Asian countries where refusal rates are around 53%. He also cited political debate targeting international students as a deterrent.
Charles Sturt University estimates this recruitment gap is costing $35 million and has responded with job cuts and restructuring. Ferguson noted that the high visa costs and low success rates make the system feel like a lottery, deterring genuine students.
Professor Andrew Norton, a higher education expert, stated that declining international student numbers affect all public universities because their fees are crucial for cross-subsidising teaching and research. He described international students as "basically the only profitable aspect of university operations."
Duncan Bentley, vice-chancellor of Federation University in regional Victoria, echoed these concerns, supporting government measures to improve system integrity but emphasizing the pressure on his institution. He advocated for a special regional skills student visa to prioritize international students for courses in critical shortage areas.
George Williams, vice-chancellor of Western Sydney University, also reported significant declines in overseas student enrollment, warning that budget deficits could affect domestic student services. He noted that international students heavily subsidize domestic students, putting pressure on available services.
Adelaide University informed the ABC in September that it had only reached 60% of its international student capacity following its merger, potentially leading to a $90 million revenue shortfall.
The government's 2026 planning level for international students is set at 295,000, but current trends suggest around 250,000 will enroll. Labor plans to reduce the number of international students eligible to bring family members, while the Coalition has pledged to abolish temporary graduate visas.
Phil Honeywood, chief executive of the International Education Association of Australia, warned that diminishing international student numbers in regional areas could exacerbate critical skills shortages in fields like nursing, childcare, aged care, and engineering.