| Good morning What has sparked today’s extraordinary attack by university peak body group Universities Australia on both the Albanese government and the Dutton opposition? (See the story below for what UA chief executive Luke Sheehy is saying today about both sides of politics, their “politically expedient” policies and their “unity ticket” against universities and international students.) It’s a fact that, with a federal election less than a year away, Labor and the Coalition are in a performative race to prove they are being tougher than the other in slashing international student numbers in order to, supposedly, solve the housing rental crisis. Fearing the impact which a populist, anti-immigration push by Dutton could have in the election, Labor has arbitrarily cut international student arrivals and now announced it will cap international student enrolments, an approach which risks the future of its education and skills policy, as well as Australia’s economic health. And Dutton has, of course, reacted by setting an even lower immigration target which would cut international student numbers even more. It is a bipartisan policy which is misconceived and likely will prove to be very damaging to Australia’s economic interests. Two years ago both Labor and the Coalition were urging a rapid return of international students after Covid to fill labor shortages. Students came, and the result was that their additional economic demand supplied more than half of Australia’s otherwise miserly 1.5 per cent GDP growth in 2023. Without students’ rapid return the economy would be close to recession. But now, rather than looking for long term stability in international student numbers, both sides want to slash them, setting up an unpredictable roller coaster for employers seeking labor as well as a boom-followed-by-bust jolt that will ripple through the economy. People forget that it’s not just housing which international students consume. They spend on all the requirements of everyday living, and the 750,000 international students currently in Australia over all levels of education have a significant and broad economic impact. Labor should consider the damage it’s doing to its own policies. Its Universities Accord review, and its skills policies, require a partnerships with universities to expand student numbers and particularly reaching out to less privileged students to skill them for new jobs. Where will the money for this come from? Due to the nature of Australia’s higher education funding system universities are very reliant on international student profits to fund the full range of their activities. The government has already made a major cut to this year’s international student intake and threatens to make a much larger one next year. Universities are left in a near impossible position, which explains UA’s sharp attack on both sides of politics. Until next Wednesday | 