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Private colleges moot downsizing amid Australia cap uncertainty

As private colleges across Australia face uncertainty over international student caps, concerns have been raised around potential job losses and downsizing.
September 2 2024
3 Min Read

Private vocational colleges across Australia are grappling with uncertainty as they await crucial details about individual commencement caps for 2025, with no clear timeline in sight.

With an overall cap of 95,000 international student commencements for the VET sector in 2025, the has estimated the reduction in international skills training students to be around 20% to 50%.

Sharing points from an ITECA board meeting which took place on August 29, ITECA chief executive Troy Williams said the uncertainty has created a “crisis of confidence”, with ITECA members now questioning the future viability of their businesses.

According to Williams, some members are contemplating “drastic downsizing measures”, creating concerns around significant job losses for the sector.

“The Australian government is pursuing policies that are inconsistent and confusing immigration and education policy in a manner that is putting the livelihood of more than 30,000 Australians employed in the international education sector at risk,” read a statement from the peak body representing independent skills training and higher education providers.

Furthermore, ITECA members feel that politicians either “do not care or do not understand” the profound impact of the uncertainty on the sector and its employees.

“Over the past year, we’ve seen a series of intellectually inconsistent decisions by the Australian government that lack a clear, consistent and cohesive approach to international education,” said Williams.

ITECA is concerned the Australian government is now making international education policy “on the run”.

“The government is using a very small number of abhorrent cases of wrongdoing by some non-genuine providers to take a sledgehammer to the international education sector that is second only to the resources sector in terms of overseas revenue earned by Australia,” said Williams.

Such an approach is economically reprehensible to all Australians and manifestly unfair to all those employed in the sector

Troy Williams, ITECA chief executive

“Such an approach is economically reprehensible to all Australians and manifestly unfair to all those employed in the sector.”

ITECA claims there is a “lack of consistency” in approaches in the draft International Education and Skills Strategic Framework released by the Australian government and the ESOS Bill currently before the parliament.

“Both the draft framework and the legislation before the parliament are short-sighted responses to the failure of the government to properly administer the migration framework,” said Williams.

Many institutions from other types of providers, which have already been given their individual caps, are still feeling perplexed as they grapple with the complex methodology involved, with key stakeholders lobbying for another public hearing to tackle this.

Vicki Thomson, CEO of the Group of Eight, has written to the Senate Committee chairman, Tony Sheldon, calling for another hearing now that the long-awaited details on the caps have been provided.

Some have criticised the government for its decision to release the figures the day after a public hearing was held.

According to Go8, it would now be beneficial for the Committee to recall Treasury and Education department officials to explain how the specific caps were calculated and also explain how they intend to mitigate against dangers to the Australian economy and society.

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