Navigating Australia’s Reliance on Foreign Students: Three Compelling Reasons Why Breaking Free Is Challenging

The Crikey article titled “Can we curb our reliance on foreign students? Here are three reasons why not”  explores the challenges and consequences Australia faces due to its heavy dependence on foreign students. The article discusses three key areas affected by this reliance:

Economic Impact on Universities and Government Funding: Foreign students play a significant role in generating revenue for universities through tuition fees, which contribute to research funding and overall university income. This reliance on international students has increased due to reduced public funding for universities. The article highlights the vulnerability of this model, particularly during global tensions and the pandemic.

Labour Exploitation and Business Dependency: The article raises concerns about the exploitation of foreign students, who may have limited English skills and knowledge of their legal rights. They often end up working in low-skilled, low-paid sectors like hospitality and retail. This cheap labor has become a crucial part of Australia’s capitalist business model, potentially leading to negative perceptions of Australian businesses among these students in the long run.

Impact on Housing and Infrastructure: The influx of foreign students has created a high demand for housing, resulting in increased property values and rental prices. While this benefits property owners and investors, it puts additional strain on the already stretched housing market and urban infrastructure.

The article also mentions recent government actions, such as expanding post-study work rights and increasing temporary graduate visa holders. These actions may further exacerbate the aforementioned issues. The Grattan Institute report suggests potential reforms, such as providing better education to international graduates regarding their work rights and opening public service positions to them. However, it acknowledges the challenges in reducing reliance on foreign students because of their economic contributions and their impact on the labor market.

In summary, the article highlights the intricate relationships between educational funding, labor markets, and housing policy in the context of Australia’s reliance on foreign students. It emphasizes the complexity of addressing these interconnected issues.

Source of the article: Crikey