On Monday, the government created further sector outrage by more than doubling student visa application fees to $1600, which Home Affairs Minister Clare O’Neil said would “create a migration system which is fairer, smaller and better”.
In its submission to the government’s proposed student caps, which are expected to be debated in parliament this week, the business council said the housing crisis had many causes apart from international student numbers.
“Poor regulation, failed planning, skills shortages in construction and high building costs have reduced new housing in the market,” the submission reads.
“Short-term policy reactions such as a cap on international students will not fix this issue, will detract from real solutions and have negative consequences for the broader economy.”
In a case study accompanying the submission, the business council says supermarket chain Woolworths counts 5,700 student visa holders among its 200,000 employees, helping to “make sure the supermarket shelves are stocked and supply chains can operate efficiently”.
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The business council’s submission makes several recommendations, including scrapping the caps altogether, or giving universities a 5 per cent buffer to exceed foreign student limits and a two-strike warning before suspending providers.
“As currently drafted, the bill is a blunt instrument that … could irreparably damage our fourth-largest export sector,” the submission reads.
Education Minister Jason Clare said of the caps: “We are consulting on this right now and I want to continue to work with stakeholders.”
A parliamentary inquiry is also being undertaken into the bill, with the Department of Home Affairs warning the Commonwealth could not manage caps placed on foreign students without “significant” development.
The Australian Skills Quality Authority, which regulates vocational education and training colleges, says in its own submission the Department of Education’s data system needs to be able to manage provider caps in real-time and that it would be “very inefficient” if the skills quality authority was required to manually monitor the caps.
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