Melbourne ratepayers slugged international student tax

Advertisement

Melbourne City Council has pledged to use ratepayers money to provide financial support to international students:

Although a figure has not been set, councillors have asked staff to develop ways to financially support overseas students, many of whom have lost casual jobs in retail and hospitality as a result of the COVID-19 pandemic…

“On Tuesday night, the council voted to ask staff to develop further measures to support international students financially and in kind during this time.

“Contrary to reports from other levels of government, not only do we welcome international students to our city, but we hope that they remain here with us in our comparatively safe country during these dangerous times,” Cr Jackie Watts said.

She said the Prime Minister’s comments were “clearly counterproductive on a number of levels”…

Melbourne is home to 200,000 international students from 170 countries, including 52,000 international students who live or study in the central city…

“I congratulate Melbourne City Council on being the first local government in Australia to commit to this vital issue”, [CEO of the International Education Association of Australia, Phil Honeywood said]…

Instead of donating ratepayer’s money to foreign nationals, shouldn’t the Melbourne City Council first provide financial support to the many homeless residents sleeping rough on Melbourne streets every night? The rise in homelessness across Central Melbourne is a disgrace, and yet these invisible Australian citizens have received minimal support from the Council.

Advertisement

In any event, it should be Australia’s universities that provide financial support to international students.

University international student fees rocketed to $12 billion in 2019, up 143% from $5.0 billion in 2013:

Advertisement

The universities also lobbied hard for the federal government to keep Australia’s international border open, while providing financial incentives of up to $7,500 for Chinese students to evade Australia’s travel restrictions via third countries like Dubai and Thailand.

Thus, Australia’s corporatised universities have displayed classic ‘moral hazard’ behaviour. For years they have privatised the financial gains from international students. And now the bubble has burst, they are seeking taxpayers to bail them out.

Make the universities provide financial support to international students before dipping into taxpayer’s money.

Advertisement
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.