The Australian Retailers Association (ARA) and the National Retail Association (NRA) have raised the alarm over the Federal Opposition’s proposal to cap international students and raise visa costs, claiming it would significantly impact the retail workforce.
On his website, opposition leader Peter Dutton declared that a Dutton Coalition Government will act immediately to reduce the number of international students in Higher Education and Vocational Education and Training (VET), in a bid to improve home ownership for Australians and reduce the pressure on the housing market.
“A Dutton Coalition Government will reduce the number of new international students commencing at public universities by at least 30,000 per year compared with Labor, freeing up housing supply in major metropolitan markets,” the statement read.
“Under our plan, there will be at most 115,000 overseas student commencements each year at publicly funded universities and at most 125,000 in the VET, private university and non-university higher education sectors.”
This is expected to result in a reduction of over 80,000 in annual new overseas student commencements compared with 2023 levels.
To achieve the reduction at public universities, Dutton proposed a cap of around 25 per cent, to be determined in government.
“Based on 2023 enrolments data, this is expected to overwhelmingly affect metropolitan, rather than regional universities, where pressure on housing and infrastructure is most acute."
According to the Department of Education, there were 1,095,298 international student enrolments in the year-to December 2024, a 15 per cent increase in enrolments on the same period in 2019.
The Coalition is also planning to increase the student visa application charge to $5,000 for the Group of Eight universities and $2,500 for remaining international students.
A new charge of $2,500 will be introduced for students who wish to change education providers.
The Group of Eight includes the University of Melbourne, the Australian National University, the University of Sydney, the University of Queensland, the University of Western Australia, the University of Adelaide, Monash University and UNSW Sydney.
“We will also conduct a rapid review into the Temporary Graduate Visas (subclass 485) to address the misuse of post-study work arrangements as a way to gain access to the Australian labour market and as a pathway to permanent migration.”
ARA chief industry affairs officer Fleur Brown rebuked the entire proposal, saying that international students are a vital part of the $430 billion retail sector.
“International students play a critical role in supporting part-time and casual roles, which are the backbone of dynamic trading environments like retail stores and restaurants,” Brown said.
“Retail job vacancies remain high at 25,600 nationally, and retailers across the country are crying out for staff. This has a flow-on effect to all Australians in providing great service to customers.
“We should be sending positive signals to this essential workforce cohort – knowing it can take years to build a pipeline of students willing to travel to our shores.”
Brown added that the ARA has consistently advocated for increased support for international student employment as a key lever in solving the retail labour crisis.
“Curtailing the ability of international students to work in Australia would undermine years of effort to make our country a destination of choice for education and employment.”
Meanwhile, NRA interim CEO Lindsay Carroll said limiting international student access will have ripple effects across the retail and hospitality workforce “at a time when we simply can’t afford it.”
“Importantly, all Australians will be impacted,” Carroll said. “Skills shortages in the sector make it challenging for retailers to keep delivering the high-standard of service they aim to provide to their customers.
“Once we turn away international students, the recovery isn’t quick. Rebuilding those pipelines takes years, and in the meantime, our shops, restaurants and cafes suffer.
“We urge policymakers to consider the full economic impact of these proposals and to work collaboratively with industry to find balanced solutions that address concerns without compromising Australia’s recovery and growth.”