Australian institutions have hit back at proposals to introduce a levy on international student fee income, saying it amounts to a tax on the sector.

Universities Australia has welcomed the Universities Accord interim report, saying it "underscores the importance" of tertiary education in building a stronger Australia.

Australian higher education is looking to the Universities Accord and a planned migration strategy to fully understand the government's strategy on international education following a budget that focused heavily on cost-of-living relief and the economy.

Australia's retention of international students has fallen behind other countries, with 16% of international students gaining permanent residency. 

The Parliamentary Friends of International Education launched in Australia last week, aiming to improve international education literacy across parliament and the wider Australian community.

The Australian government has supported measures to prevent foreign interference on university campuses, but stopped short of cracking down further on controversial Confucius Institutes. 

Students in China who have been studying international courses online should now travel to overseas study destination countries, authorities announced on January 28.

The government of Australia has announced a 'Universities Accord' designed to build a long-term plan for the country’s higher education system.