Australia’s Coalition proposes capping new international student commencements at 240,000 a year and scrapping the temporary graduate visa. University leaders warn the reductions could leave institutions with major funding gaps.
Opposition Leader Angus Taylor’s plan would cut annual commencements by 55,000 from the government’s planning level of 295,000. The Coalition also wants to reduce the share of international students in higher education to below 25% and abolish the visa that allows graduates to remain and work in Australia temporarily after their studies.
The sector is already facing a decline in foreign student numbers and visa approvals. Figures cited in the report show primary student visa approvals for higher education fell from 261,317 in 2022–23 to 195,607 in 2025–26. The approval rate over the same period dropped from 87.5% to 84%.
Universities Australia chief executive Luke Sheehy said institutions were under financial pressure because public funding had not kept pace with the cost of teaching, research and infrastructure. International education revenue had helped fill that gap. He said the impact would vary by institution and could not yet be quantified across the sector.
Australian Catholic University vice-chancellor Zlatko Skrbis said debate about international students had become overheated and was affecting prospective students’ decisions. Families, he said, were weighing the risks of making a major investment in overseas education.
Universities also point to potential effects of scrapping the graduate visa. Western Sydney University vice-chancellor George Williams said many international students later work in nursing and aged care. He said nursing students help address a shortage of about 10,000 nurses in the region. Universities also say some revenue from international students supports Australian students.