Julian Hill is the Federal MP for Bruce and Co-Chair of the Parliamentary Friends of International Education. Julian was previously Executive Director, International Education in the Victorian Government.
International Education and COVID19 crisis
International education is a stunning Australian success story, by far our most valuable services export, and a bright spot in Australia's post-GFC growth. Onshore students contributed $37.6 billion to our economy and supported over 247,000 Australian jobs in 2018/19. Our fourth largest export sector, behind iron ore, coal and gas, more Australian jobs are supported by international education than there are workers in the entire mining or agriculture sectors.
International students or their visiting friends and relatives comprise 60% of Australia's tourism numbers. Our cities, regions and campuses are more vibrant, diverse places to live, work and study because so many young people choose to spend a few valuable years here. Offshore education services add even more value, and the sector's soft-power dividend across our region over decades is incalculable with over 2.5 million alumni across the world, including many who rise to the top of Asian societies.
The scene was set for continued growth in international education in 2020, but COVID19 is now wreaking havoc. Enrolments have plummeted, many students are stuck off shore, providers are in crisis, jobs are being lost and the worst is yet to come.
Yet international education is the only Top 10 Australian export sector that has been not just ignored, but actively harmed by the government during this crisis. The Prime Minister's tone-deaf comments telling international students to just "go home" have inflicted enormous gratuitous damage on Australia's reputation. One accommodation provider told me that the morning after those comments, 35 students turned up at the front desk with their papers to cancel their leases as they literally believed they were required to leave.
Word of mouth is everything in international education, and social media has been ablaze with anger, hurt and confusion. Students are globally aware and contrast Australia's approach with the caring, practical support of key competitors Canada, New Zealand and the UK. A leading education CEO told me last week, "We are trying to work with the government. But the major negative is the messaging from Morrison, rolling out the unwelcome mat and highlighting a lack of support for students. If we can get things right though we are in the box seat, Australia has huge potential advantages from this crisis."
It's not too late though to take low cost actions to save jobs and position for recovery, but the stakes are high. Universities have become dangerously dependent on international education. Mitchell Institute modelling forecasts a loss of up to $19 billion revenue over the next three years: "each six-monthly intake missed due to the closed international border will deliver an economic blow equivalent to when Australia lost its entire car manufacturing industry."
COVID19 has exposed Australia's broken higher education funding model. We now face the loss of tens of thousands of jobs and massive cuts to university teaching, capital works and research. If the government fails to boost public research funding during the recovery, our universities risk falling in the global rankings so critical to Australia's future success.
Quality, reputable private higher education and training providers are suffering, while a few 'bottom feeders' prosper as anxious students chase cheaper courses. Perversely, some onshore agents are profiteering from the crisis, jacking up commissions and luring students to dodgy providers, so desperate for cash-flow they will pay 40-50% commissions. An immediate crackdown is needed on unethical onshore agent behaviour.
International students still in Australia are anxious and isolated, many facing destitution having lost casual work and income. If the government is serious about saving Australian jobs, then it must provide direct financial support to genuinely needy students. Part-time enrolments should be allowed in Semester 2, freeing up tuition fees for living costs. Visa extensions, and a guarantee that students who return home can study online or return next year without penalty, should be given.
Australia's hard won, global reputation for quality education and a safe, caring student experience is under threat as students feel abandoned, unwelcome and hear appalling reports of racist abuse. Austrade needs resourcing now for digital marketing, reassuring the world that Australia remains open for business and students are welcome.
Student accommodation providers may face insolvency heading into 2021, but could be cheaply supported until students return. Governments could rent spare capacity for emergency housing for people suffering homelessness, family violence or needing respite.
Looking ahead, providers and prospective students need certainty. Student visa processing must be restarted, giving genuine new students confidence to enrol and start online, knowing they'll be allowed to come when it's safe. If Canada can admit students, subject to strict quarantine and health checks, then we can too. The government should announce a date now when students can return later this year along with arrangements to protect our community.
If we fail to act then we will lose out to global competitors. But with political will the government could save the sector, and even enhance our position by 2021/22 if we're clever. Leveraging a lower Australian dollar, and highlighting how well Australia has managed COVID19 as compared to the disastrous situation in the US and UK.
Billions of dollars have been found to support aviation, tourism, and agriculture. Far less costly support for international education – an industry of the future – could save thousands of Australian jobs, and position this vibrant sector for a strong, sustainable recovery to our nation's ongoing benefit.
Things the government could do
Here's a list of things that leading providers, experts, and students have suggested the government could do at relatively little cost to stem the damage to Australia's $38 billion international education sector, and position Australia for a strong recovery to support over 247,000 Australian jobs.
1. Stop saying dumb stuff and be optimistic – focus on fixing problems
No more damaging 'go home' comments by the Prime Minister. Appoint one senior Minister with authority to coordinate the recovery. Probably Dan Tehan as, although he's been weak, he's at least tried to be positive and sensitive. Consult with providers and students and agree on a practical action plan to both address the current problems and to ready the sector for quick recovery.
2. Visa and enrolment flexibility to get through the crisis
The Department of Home Affairs needs to urgently get its act together as visa uncertainty is needlessly exacerbating economic damage and harming the mental health of international students, often socially isolated, who worry about what will happen. Give current students impacted by the crisis free, automatic extensions to their visas, subject of course to any integrity concerns. Guarantee that any student who does go home during the crisis can continue their studies online and / or return next year without penalty for breaching visa or enrolment conditions.
3. Flexibility in enrolment conditions, and post-study work rights for new online enrolments
All student visas require full time study and non-compliance can seriously affect visa validity and future visa or residency options. Temporary relief could be provided to allow students already onshore who are suffering hardship to study a half load in Semester 2 to reduce financial stress and free up tuition fees for living expenses for 6 months. Australia could also incentivise new enrolments by copying Canada: promise students who start online university courses offshore while borders are closed, that Semester 2 will count towards their post-study work rights visa.
4. Financial support for students who need emergency sustenance
International students are required to fund their health insurance, show they can support themselves for the first year and are not eligible for Centrelink benefits. Yet, through no fault of their own, many students resident in Australia are now suffering a double whammy – the loss of casual work and loss of family support as their home countries are affected by the COVID19 crisis. Contrary to popular belief, many international students are not from wealthy families and sacrifice a lot to study in Australia. Thousands work in low paid jobs that Australians do not want to do, including in aged care, disability care, convenience stores and restaurants.
For those students who prove they are genuinely suffering from the COVID19 crisis, many of whom cannot return home even if they wanted to, there is a moral and economic argument for the Commonwealth to provide some financial support. This could be in the form of small no-interest loans, as well as seed funding for a national emergency support fund to be established in collaboration with States, Territories and providers. Funds could be provided to needy students based on strict criteria to help them through this crisis.
Frankly, the money required is peanuts compared to funding given to prop up other sectors during the crisis – sectors that provide support fewer jobs that international education. Other countries are helping international students, and targeted support would save Australian jobs by allowing students to buy food, pay their bills, rent and fees, and complete their studies. Targeted funding would be an investment, in the future good health of Australia's international education sector, and our long term reputation in Asia and the region. Australia cannot seriously continue to claim we do not treat international students as cash cows if we do not provide support in this crisis.
5. Start issuing new student visas now
The Department of Home Affairs has stopped processing student visas, which is devastating future enrolments. Parents and students don't want to risk starting an expensive degree online without certainty of being allowed to enter Australia for face to face teaching once it is safe to do so. Granting visas now so students can come when restrictions are eased – subject of course to strict integrity checks – provides security for international students to enrol and pay now, and not drift to other countries. It also limits delays in processing a long queue of visas when borders reopen, avoiding the prospect of students not being able to commence courses in time. And it gives our universities and other providers some idea of the student pipeline.
6. Set a date now to admit new students onshore safely with testing and quarantine
Australia should plan now for students to return later in 2020 for a summer Semester – or, at the latest, for Semester 1 2021, provided strict testing and quarantine arrangements are in place to protect our community, as Canada is doing. Students could be tested on arrival and at the end of 14 days strict quarantine. Reputable education and training providers and accommodation providers will partner with hotels, and students will cover the cost. Reasonable certainty around when students can return is critical to secure new enrolments and allow providers and students to plan. This will reduce the loss of Australian jobs and our global market share.
7. Crisis and recovery marketing now
Australia has punched above our weight so it's our market to lose, and right now our reputation is being dragged down in the digital world. Positive reassurance to current and prospective students is urgently needed. Parents are genuinely worried about whether Australia welcomes students or not any more. Agents and providers report that extra comfort is needed in China as the general concern is exacerbated by geopolitical propaganda periodically spread against Western governments (and vice-versa).
Australia has pivoted well to online delivery and has a positive story to tell, but fact sheets or videos on government websites are not enough to get the message out. Money for Austrade is needed: we are open for business, this crisis will pass and students are welcome. COVID19 can be a competitive advantage as Australia has managed it well and new students are scared to go to the US and the UK. We can act now to secure new enrolments, ahead of our big competition such as Canada.
8. Support for student accommodation sector
Student accommodation providers are critical infrastructure for this annual $38 billion sector and the outlook is worrying. Governments can consciously give some priority to use spare capacity until students return for emergency, housing for homeless people, and people seeking accommodation due to family violence, respite or quarantine. This will bolster cash-flow and keep providers solvent, and ready for the return of international students.
9. Immediate crackdown on onshore education agents
Providers across all parts of the sector are reporting some onshore agents are profiteering from the crisis, jacking up commissions, poaching students from universities and reputable private providers, and ripping off providers and students. Australia needs an agent registration scheme like New Zealand. Well over 80% of international students come through an education agent, and most provide a useful service. Yet dodgy agents can't be banned, unlike migration or real estate agents or financial advisers. Registration would allow complaints for unethical behaviour to be made and dodgy agents kicked out. The Government could introduce an onshore agent registry tomorrow as all the data is available.
10. Confront the looming crisis in research funding
Universities face the loss of more than $10 billion in the next 2-3 years, even if recovery is relatively swift. The Australian education sector has an unhealthy dependency on international student revenue to fund research as public investment (read 'Federal government funding') has been cut in recent years. Without government action reverse these funding reductions, the nation faces dangerous cuts to research and a damaging fall in global rankings. Strong results in global rankings have been a key element of our success in international education and must be preserved if we are to maintain our competitive position. The government needs to invest more in research at least until revenue recovers and should commit to this as a matter of urgency.