Policy Shifts Turn International Students into Collateral Damage? Unpacking the Wave of Uni Job Cuts in Australia
Job Cuts Reveal Deeper Cracks in Higher Education
Australian universities, once welcoming hubs for international students, are now facing unprecedented challenges. Amid declining student demand and significant shifts in migration policy, one in four universities are undergoing major cost-cutting measures, including job cuts, course reductions and slashed budgets. At the centre of this storm? International students.
According to The Australian Financial Review, nine universities are collectively slashing budgets by $650 million, with at least 2,200 positions set to be axed. It’s a sobering reminder of the pandemic-era crisis when 17,300 university jobs were lost. The current turmoil only deepens the wounds.
Decline in Student Numbers and Policy Overhaul: A Perfect Storm
Fewer domestic students are enrolling, largely due to a strong job market and rising living costs, leading many mature-age students to delay study. However, it’s the sharp drop in international student numbers that’s hitting universities hardest. Government migration reforms are now in full swing: student visa applications dropped from 380,000 to 261,400 in just 12 months to February.
Western Sydney University is projecting a $79 million deficit by 2026 and plans to cut between 300–400 roles. Vice-Chancellor George Williams cited weakening demand, fierce competition and falling international enrolments as key factors. UTS has also announced a $100 million cut and the loss of 400 positions. Other institutions like the University of Southern Queensland and James Cook University are also following suit.
Are International Students Becoming the Scapegoat?
These decisions have sparked backlash. The National Tertiary Education Union argues that some institutions aren’t actually in financial crisis, suggesting that many cuts are “an overreaction.” Andrew Norton, a higher education policy expert at Monash University, says while external pressures are real, many universities are overreacting to policy changes.
Current federal policy places enrolment caps on international students. Once a university hits 80% of its approved intake, the Education Minister can slow visa processing. The Opposition’s proposed policy would go even further, cutting new student numbers to 240,000 and hiking visa application fees — making it significantly harder for students to come to Australia.
Tuition Costs and Debt on the Rise
Meanwhile, the Morrison-era “Job-ready Graduates” policy has added financial pressure on students without effectively guiding career-ready course choices. Students can now pay up to $17,000 for a degree — much higher than in 2021 — while government subsidies have dropped to as low as $1,200 in some areas.
All these pressures highlight a broader disconnect between policy reform, market realities and how universities are run. For international students, it means a tougher road ahead: reduced course offerings, lower teaching quality, and stricter visa conditions.
What’s Next for Students and Universities?
In these uncertain times, prospective and current international students should stay informed and plan carefully. It’s more important than ever to keep an eye on policy developments and university updates. Meanwhile, the Australian government and higher education sector must strike a balance between financial sustainability and educational quality.
Without thoughtful solutions, this crisis may reshape the future of Australian higher education — and the dreams of countless students seeking opportunities here.
If you’re planning to study in Australia, it’s wise to plan early, monitor the policy landscape, and choose your course and institution carefully. For tailored advice and the latest updates, feel free to reach out to the Riverwood Migration. We’re here to support you every step of the way.
