Australia’s 2025-26 federal budget has been criticized by education leaders who say it failed to support the international education sector. The budget predicts a drop in the number of migrants by 75,000 in 2025-26 and another 35,000 in 2026-27, which could hurt the sector.
There’s already an unofficial limit on international student enrollments, and many hoped the budget would help fix this. Instead, it plans to increase visa fees, including a big jump in the student visa fee from AUS$710 to AUS$1,600. This is expected to bring in over $4 billion in each of the next two years.
Luke Sheehy, head of Universities Australia, said it’s disappointing that the budget didn’t invest in the international education sector. He called for scrapping the Job-ready Graduates Package, saying it unfairly changed fees for students and cut funding to universities. He pointed out that investing in universities could add AUS$240 billion to the economy by 2050.
Universities Australia wants the next government to bring back the Education Investment Fund, increase research funding, raise PhD stipends, and grow international education in a sustainable way.
The Independent Tertiary Education Council Australia (ITECA) also criticized the budget. Its CEO, Felix Pirie, said the government hasn’t helped change the view that international students are to blame for the cost-of-living crisis and that recent decisions have badly damaged the education sector.
The Group of Eight (Go8), a group of top universities, said the budget ignored how important universities and research are for the country’s future. CEO Vicki Thomson said graduates and research are essential for Australia’s economic and social success.
Even though the 2024-25 Budget includes some positive steps for education, sector leaders say much more needs to be done for international education.