The Albanese government's decision to maintain the National Planning Level at 295,000 in 2027 gives universities some certainty and recognises the importance of international students, but broader policy settings continue to undermine the success of Australia's world-class university system.
Universities Australia Chief Executive Officer Luke Sheehy said universities back a sustainable system, but warned the government was making Australia harder, more expensive and less certain for genuine students to choose.
"Sustainability and integrity matter, and universities support both," Mr Sheehy said.
"Keeping new overseas commencements steady gives the sector something to plan around, but it is a long way from the sustainable, managed growth the government promised two years ago.
"Today's announcement confirms there will be no growth next year.
"We recognise this may be appropriate in the current context, but the bigger problem is that the policy settings behind the number are making even this steady target harder to reach.
"If the government keeps making Australia more expensive and more difficult for genuine students to choose, we're going to fall short - and we're already seeing that risk emerge.
"That's bad for our sector and Australia. It means fewer skilled workers, weaker productivity and a $55 billion export sector supporting 250,000 jobs put at risk.
"Many universities, particularly in regional and outer suburban Australia, are ready, willing and able to welcome more international students.
"International education is one of Australia's great success stories, but it's being steadily eroded by policies that do not serve our universities, our economy or our skills needs.
"A big number on paper means little if the policies behind it make it harder to deliver in practice.
"That's the contradiction at the heart of the current approach. The government says it wants almost 300,000 new international students, while keeping in place policies that make that harder to achieve.
"Unless the broader settings change, the 2027 allocation risks being just another number - not a plan that delivers the skills, jobs and growth Australia needs."
