Fresh fears surrounding international student sentiment in Australia have been expressed as a new report explores the implications of a proposed levy on international student fees.
The paper by Melbourne Centre for the Study of Higher Education expressed further concerns with the levy including creating equity between higher education institutions and the redistribution of fees, among others.
The levy was suggested in the government’s Universities Accord interim report which stakeholders had previously hailed “a once in a generation opportunity” to shape Australia’s higher education ecosystem.
According to the Australian government, the proposed levy “could provide insurance against future economic, policy or other shocks, or fund national and sector priorities such as infrastructure and research”.
Supporters of the levy argue the move could address sector-wide challenges including concerns that the government currently underfunds research and infrastructure, meaning universities must seek other sources of revenue to cover the full costs of many of their core activities.
For many institutions, the main source of funds used to subsidise activities has been international student fees, and the new report highlights these fees arguably provide over a quarter of research expenditure for institutions.
The Accords had cited that funding had “become too reliant on uncertain international student funding” and that it “needs to be put on a sounder and more predictable footing” as an argument in favour of the levy.
However, Australian universities were quick to hit back at the proposal, finding their own issues with the proposition.
Some claimed it would diminish the country’s attractiveness as a study destination and put further burdens on international students.
Now, a report written by two Melbourne CSHE professors – Christopher Ziguras and Gwilym Croucher – has further analysed the implications of the levy.
The report highlighted that most international students already pay tuition fees significantly higher than the amount universities receive for domestic students and are generally doing more “heavy-lifting” than their domestic counterparts to afford their education.
The levy could further drive the feeling among international students that they are seen as “cash cows”, the authors laid out in the report.
According to Angela Lehmann, head of research at The Lygon Group, research throughout the pandemic and post-pandemic era has shown that international students are more than ever before conscious of being seen as “cash cows”.
“At the same time students – both current and prospective – are more attuned than ever before to government decisions and policy announcements,” she added.
According to Lehmann, the moment the idea of an international student levy was floated in back August, The Social Source – The Lygon Group’s social listening platform – lit up with negative sentiment.
“Students are increasingly aware that they are being viewed as commodities by Australia and are starting and this has real implications on the attractiveness of Australia,” she continued.
“Put simply – international students are listening” said Lehmann.
The report claims that the levy proposal is “at odds” with the Accord panel’s efforts to highlight the social and political benefits of international education and to attach less importance to its economic contribution.
“There is a risk that a levy would damage the sector’s social license to operate within Australian communities,” said Lehmann.
“In a way, it could be seen to confirm a belief that students are here to make money for institutions rather than the many other contributions students make to Australian communities, economies and national life.”
The report goes on to estimate that the Australian government collects over $2.6 billion annually directly from international students and graduates on post-study work visas through visa fees, income tax and GST.
“Put simply – international students are listening”
“When considering placing a new tax on the tuition fees paid by international students to education providers, we need to recognise that international students already contribute significantly to the public purse,” the report read.
Branding the proposed levy a “radical policy step”, the authors of the report also highlighted that five Australian universities have had significantly higher international revenue than others recently, and depending on the model used, these universities would make up the biggest share of of the contributions.
“A straight 5% levy on international student fees for each university in 2021 would have collected over $430 million, half of which would come from just five universities,” it read.
Among others, a key implication highlighted in the report relates to the transparency and accountability of the purposes for which the funds are used.
“Students might rightly ask whether they are receiving value for money,” the authors highlighted.
“Were a levy to cause a major drop in Australia’s share of the international education market, it may ultimately be a self-defeating policy.”
