International student restrictions will impact ‘backbone’ job roles

Both major parties have proposed a cap on international students, leading to swift resistance from business lobbyists fearing that massive setbacks will ensue.

The Business Council for Australia (BCA) and Australian Retailers Association (ARA) have offered sharp criticism for both major parties after proposing policies fixating on capping the number of incoming international students with hopes of alleviating Australia’s housing crisis.

As previously reported by HR Leader’s sister brand, Accountants Daily, the Coalition would cap international students at approximately 25 per cent of total enrolments, a change the party claimed would reduce international students by 30,000 more than Labor’s policy.

“A Dutton Coalition Government will reduce the number of new international students commencing at public universities by at least 30,000 per year compared with Labor, freeing up housing supply in major metropolitan markets,” Dutton said in a press conference on Sunday.

According to Business Council chief executive Bran Black, the Coalition's proposal would ultimately lead to the undermining of the international education sector, which is worth $50 billion a year to the economy.

“International students are worth more than $50 billion a year to our economy and are an important driver of growth,” Black said.

“We're in a period of higher global and economic uncertainty, and so now is the time to prioritise growing successful sectors, such as education, where we already enjoy a competitive advantage.”

“Let’s remember this sector supports more than 250,000 jobs, and so further reducing international student numbers will risk local jobs and put pressure on businesses that depend on students for their viability.”

Labor, on the other hand, has made numerous attempts to limit incoming international students. Just last year, it attempted to grant the education minister powers to cap international student enrolments depending on the education provider, campus, and course, with the bill only being halted by the Greens and the Coalition.

ARA chief industry affairs officer Fleur Brown said international students were essential to the retail sector as workers and consumers.

“International students play a critical role in supporting part-time and casual roles, which are the backbone of dynamic trading environments like retail stores and restaurants,” Brown said.

“Retail job vacancies remain high at 25,600 nationally, and retailers across the country are crying out for staff. This has a flow-on effect to all Australians in providing great service to customers. We should be sending positive signals to this essential workforce cohort, knowing it can take years to build a pipeline of students willing to travel to our shores.”

The ARA claimed that international students are a lever that should be relied on more to address the retail labour crisis.

“The ARA has consistently advocated for increased support for international student employment as a key lever in solving the retail labour crisis,” Brown said.

National Retail Association interim chief executive, Lindsay Carroll, spoke to the ripple effects that will spread across the retail and hospitality sector if these international student caps come to fruition.

“We understand the need for a balanced migration system, but limiting international student access will have ripple effects across the retail and hospitality workforce at a time when we simply can’t afford it,” Carroll said.

“Importantly, all Australians will be impacted. Skills shortages in the sector make it challenging for retailers to keep delivering the high standard of service they aim to provide to their customers.”

“Once we turn away international students, the recovery isn’t quick. Rebuilding those pipelines takes years, and in the meantime, our shops, restaurants and cafes suffer.”

“We urge policymakers to consider the full economic impact of these proposals and to work collaboratively with industry to find balanced solutions that address concerns without compromising Australia’s recovery and growth.”