International caps – will the proposed changes be good for TAFE? – comment by CEO Jenny Dodd

There has been much discussion in the last few weeks about proposed limits on the number of international students that tertiary education providers can recruit. The mainstream media has been rife with commentary around the proposed caps. Much of the commentary has been doom and gloom, especially from parts of the university sector. This also played out in the Senate last week through the hearings related to the review of Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 (ESOS).

Like many people in the broader tertiary education sector, TDA was of the view that international tertiary education policy needed a review. In fact, in the VET sector, we know not all education agents or RTOs act for the benefit of students. This was made apparent in the Nixon Rapid Review into the Exploitation of Australia’s Visa System (2023).

Andrew Norton, Professor in the Practice of Higher Education Policy at ANU, identified in an article last Monday in The Conversation, that the proposed caps are part of a suite of policy changes to international education, not one step alone. He suggests that they should not progress until some of the other reforms have been bedded down. However, for the purpose of today’s opinion piece we will just focus on the proposed caps if they are introduced into vocational education.

How will caps affect TAFEs?

TAFEs current international student numbers are relatively low compared to many private providers and universities. TAFEs are predominantly providers of skills development to equip Australians to meet the skills demands of the Australian economy. International students have always been a part of the TAFE education and business model, but compared to numerous private providers, international students do not dominate.

What is being proposed are limits on the number of international students as a ratio to their domestic student numbers. Many integrity issues have stemmed from RTOs that deliver only to international students. From a TAFE perspective we have been advocating for some time that international students should be part of the mix of an RTO, not an exclusive business model.

Therefore, it was very pleasing to see the analysis proposed by Peter Hurley and Melinda Hildebrandt from the Mitchell Institute at Victoria University, also in The Conversation last week (7 Aug). They wrote ‘First, caps are not a cut to overall student numbers. They are designed to limit the rate of growth. … Second, some institutions – mostly private vocational colleges would need to reduce international student numbers as they have virtually no domestic students. … This would free up enrolments for other institutions (namely universities and TAFEs) to grow, for instance at 5 to 10% per year”.

Their analysis suggests caps will support growth of international students at the public provider. Thus, TDA is supportive of the proposed caps being introduced into vocational education and training.