If you were to stop the average South Australian in the street and ask them what generates the biggest export dollars for our state, the answer may well be one of our big commodity contributors, wine or barley in the agriculture sector, iron ore or lead from the metals sector.
This is despite the fact International Education has been South Australia’s top export earner for some time now – and the first sector to exceed the $3 billion mark, generating $3.152 billion for the state’s economy in 2023.
That’s why the federal government’s recent decision to impose caps on international student numbers should have us all concerned and why our Premier must make the strongest of representations to the Prime Minister to reconsider at this week’s National Cabinet meeting.
The federal government has announced a topline cap of 270,000 international students in 2025, but behind that number lies a labyrinth of complex conditions and exemptions that will see different learning institutions impacted in different ways − a highly bureaucratic approach.
Why should we care?
International students represent more than just tuition fees. They support local businesses as customers and often provide those same businesses the workforce they sorely need. Their families are a major contributor to the tourism sector, representing as much as 50% of foreign visitor expenditure when the international student programme is firing.
Whenever the government makes restrictive decisions like this around migration or international students, it sends a message across the globe that takes effect with immediacy but can take years to unwind should the policy be reversed.
We only need to look at the impact caused by the global pandemic when international students left our shores. The knock-on effect this had on our shops, pubs, cafes and restaurants who could not find workers was significant, leading to closures or reduced operating hours to keep operations going. These sectors have never fully recovered.
Our June SA Business Chamber/William Buck Survey of Business Expectations told us in no uncertain terms that business confidence is low and trading conditions are hard. Our small business sector does not need another hit to its workforce or customer base.
If this were not reason enough for Peter Malinauskas to raise the alarm with the Prime Minister this week, a newly merged university should be top of mind. This entity should elevate our position in both reputation and attraction for international students. A restrictive policy around intake would likely not have been a consideration when the Vice-Chancellors of both institutions were brought to the negotiating table.
Bringing students to our state and training them in the fields required to deliver on ambitious defence and energy projects will be essential if we are to build a skilled workforce for the future.
The federal government needs to rethink this decision and quickly, before the impact is felt in real terms. Lost revenue for our learning institutions and small businesses, a reduction in workforce capacity, and an unnecessary hurdle in building capability to deliver for South Australia’s economic potential are the likely outcomes if our message goes unheeded.
Over to you, Premier.
