Proposed foreign student cap would ‘crimp’ Australia’s universities: report

Australia’s university sector is amongst the most dependent on international student revenue.

The proposed cap on foreign students will “crimp” the financial performance of Australia’s universities, S&P Global Ratings reported.

The Australian government currently proposes to limit the enrolment of foreign students at domestic universities to tackle a housing crisis.

“The proposed caps on foreign students would crimp universities' financial performance and autonomy, if implemented,” S&P Global Ratings credit analyst Martin Foo said. "Lower fee revenue could mean less internal funding for research, halting Australian universities' recent ascent up the global rankings. And weaker financial profiles could translate into lower credit ratings."

S&P Global Ratings noted that Australia’s university sector is among the most dependent in the world on international student revenue.

“We have long commented that heavy reliance on international fees could expose universities to risks that include shifting geopolitical rivalries, currency fluctuations, or foreign interference," Foo said.

"But an abrupt and homegrown threat to the sector's lucrative business model has caught most observers by surprise."