Kate Clayton, an academic at La Trobe University, has published an article in the Australian Institute of International Affairs claiming consecutive governments have cut funding to universities, which has forced their over-reliance on international student fees:
Consecutive government funding cuts have forced universities to become reliant on international students for funding. As universities restructure in response to COVID-19, both universities and international students are at risk…
Australia’s dependence on international students can be traced to government funding cuts, which have forced universities to turn elsewhere for funding. A demand-driven university system was introduced in 2012, removing the limit on government-funded places. These changes paved way for more domestic students to attend university, however it saw the federal government spending more on higher education. In order to mitigate some of these costs, in 2017, the coalition government announced a $2.2 billion cut in funding. As a result of this, universities capped admissions from domestic students. In 2018, an estimated 10,000 domestic university places went unfunded, rising to 23,000 this year. Whilst domestic students have access to commonwealth-supported places at universities through HECS and HELP payment schemes, international students pay for their education upfront. The cost of university for international students can be 50 percent more than domestic students, The fees generated by international students has filled the gap left by government cuts…
