Australia’s 2025 Election: The Call for Sustainable International Education Policies to Secure Economic Growth
In the lead-up to Australia’s 2025 federal election, the international education sector stands at a critical juncture. Independent Higher Education Australia (IHEA) has unveiled a comprehensive platform urging policymakers to implement sustainable reforms to safeguard and enhance this vital industry. As one of Australia’s largest export sectors, international education not only fuels economic growth but also enriches the nation’s cultural and social fabric.
Economic Significance of International Education
International education has long been a cornerstone of Australia’s economy. In the 2023-24 financial year, international students contributed approximately AUD 48 billion to Australia’s exports, underscoring the sector’s pivotal role in national prosperity.
IHEA’s 2025 Federal Election Platform: Key Proposals
IHEA’s platform is structured around three central themes: Student-Centricity, International Education, and Regulatory Burden. Notable recommendations include:
- Equity of HELP Loans: Advocating for the permanent abolition of the FEE-HELP loan fee to ensure equitable financial support for all students.
- Funding Equity: Promoting access to Commonwealth Supported Places (CSP) and programs across diverse higher education providers.
- Sustainability of International Education: Emphasizing the need for policies that ensure the long-term viability and competitiveness of the international education sector.
- Accessibility and Competitiveness: Proposing reductions in student visa fees to maintain Australia’s attractiveness as a study destination.
- Pathways to Permanent Residency: Enhancing opportunities for graduates in priority disciplines to transition to permanent residency, thereby retaining valuable talent.
These reforms aim to create a more flexible, agile, and responsive tertiary education system capable of meeting Australia’s evolving skills needs.
Challenges Facing the Sector
Despite its successes, the international education sector confronts several challenges:
- Policy Shifts: The Australian government’s decision to cap new international student enrolments at 270,000 starting in 2025 has raised concerns about potential economic repercussions, including significant revenue losses and job cuts within educational institutions.
- Housing Crisis Attribution: International students have been unfairly implicated in Australia’s housing crisis. However, experts argue that the root causes lie in systemic issues such as a chronic undersupply of affordable housing and inadequate rent controls.
- Labor Market Pressures: Temporary migrants, particularly international students, play a crucial role in sectors like hospitality and healthcare. Policies limiting their numbers could exacerbate labor shortages in these essential industries.
The Path Forward
To ensure the sustainability and growth of international education, a collaborative approach is essential:
- Policy Collaboration: Engaging stakeholders across government, industry, and educational institutions to develop policies that balance economic, social, and infrastructural considerations.
- Investment in Infrastructure: Addressing housing and urban development challenges to accommodate both domestic and international populations without compromising quality of life.
- Enhancing Support Services: Providing robust support systems for international students, including mental health services, career counseling, and community integration programs.
As Australia approaches the 2025 federal election, the decisions made will have lasting impacts on the international education sector and, by extension, the nation’s economic and social well-being. IHEA’s proposed reforms offer a strategic pathway to harness the full potential of international education, ensuring it continues to be a pillar of Australia’s prosperity.

