International education services

Commission research paper

This paper was released on 30 April 2015 and focuses on the two key policy levers the Government has at its disposal to influence International Education Services (IES):

  • the visa system
  • regulation aimed at providing quality assurance in the delivery of education to international students.

Download the paper

  • International students make a major economic and social contribution to Australia. In 2014, there were over 450 000 international students onshore, representing around 20 per cent of higher education students and 5 per cent of students enrolled in vocational education and training.
    • The international education sector is back on a high-growth trajectory following a major downturn from 2009 to 2011. Students from China and India account for 37 per cent of all international students in Australia.
  • In parallel with rapidly growing demand for international education, principally from middle-income economies in Asia, competition for international students is intensifying among traditional provider countries and new entrants. While Australia's share of the international student market is only around 6 per cent, it has one of the highest concentrations of international students in total national tertiary enrolments.
  • Whether Australia remains an attractive destination will depend on how well education providers respond to students' expectations for their learning experience and provide a value proposition as technology and business models evolve.
  • The Australian Government has a role in providing a policy and regulatory framework that encourages behaviours by education providers, international students and other stakeholders that support its immigration and education policy objectives, and enables the market for international education services to function well within these policy settings.
    • The sustainability of international education exports is more closely linked to regulatory settings than in many other sectors. Regulatory settings around student visas and education quality are crucial.
    • The lack of a synchronised and coherent strategy for these two interacting policy levers has the potential to undermine the sector's ability to take advantage of the opportunities offered by growth in the global education market.
  • In terms of student visas, the introduction of streamlined visa processing has contributed to a reversal of the downward trend in international student numbers, with the higher education sector as the predominant beneficiary. However, the implementation of this system has introduced a number of perverse incentives that put at risk the quality and reputation of Australia's education systems.
  • The potential broadening of access to streamlined visa processing by a wider spectrum of education providers carries risks to the reputation of Australia's education system.
    • There are several options to mitigate these risks. The preferred option should provide the highest net benefit to Australia as a whole. But they all require a high level of engagement between the Department of Immigration and Border Protection and the Department of Education and Training.
  • In terms of education quality, the enforcement of regulatory settings has moved increasingly to a risk-based approach in recent years. However, the current emphasis on teaching standards should be rebalanced so that learning standards have a greater role in quality assurance.
  • There is also a strong case for publicly available information on the comparative quality ranking of providers in order to assist domestic and international students to make informed decisions about provider choice.
  • Further, Australian institutions should reduce their reliance on agents for student recruitment.

Background information

02 6240 3330