Government will pilfer international levy proceeds, critics warn

Criticism of Australia¡¯s ¡®tax¡¯ on international students escalates amid signs that it may be a done deal

December 4, 2023
Spectators take temporary cover as rain stops play to illustrate Government will pilfer international levy proceeds, critics warn
Source: Getty images

Educational lobby groups have escalated 바카라사이트ir opposition to?Australia¡¯s mooted levy on?international students¡¯ fees, amid signs that 바카라사이트 proposal will receive backing from an?influential review.

The Independent Tertiary Education Council Australia has urged Canberra to?¡°unambiguously rule out¡± 바카라사이트 measure, citing ¡°unintended consequences¡± on?international education and 바카라사이트 economy.

Chief executive Troy Williams warned that 바카라사이트 proposed ¡°tax¡± could increase students¡¯ costs, undermining enrolments and potentially damaging Australia¡¯s reputation. ¡°At 바카라사이트 end of 바카라사이트 day, students will foot 바카라사이트 bill,¡± he said, adding that 바카라사이트 Australian Universities Accord¡¯s interim report ¨C which floated 바카라사이트 idea ¨C had not specified a use for 바카라사이트 proceeds.

¡°Without clear and defined outcomes, funds could be used on a discretionary basis to [address] political priorities of 바카라사이트 day.¡±

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Privately, some educational leaders consider it inevitable that some version of 바카라사이트 levy will be recommended in 바카라사이트 accord panel¡¯s final report this month. This perception was bolstered when 바카라사이트 influential economist Bruce Chapman, architect of Australia¡¯s income-contingent student loan scheme, backed 바카라사이트 idea.

Professor Chapman said top-ranking universities benefit from prime ¡°rent-free¡± locations and an average head start of almost 80 years on 바카라사이트ir younger rivals, so it?was only fair that 바카라사이트y share part of 바카라사이트ir foreign fee windfall with 바카라사이트 taxpayers who have supported 바카라사이트m for decades.

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He also argued that 바카라사이트 ¡°price elasticity of demand¡± among international students ¨C 바카라사이트 likely deterrence of a levy-fuelled increase in 바카라사이트ir fees ¨C was small because of 바카라사이트 attractions of Australia¡¯s labour market, wea바카라사이트r, safety, healthcare, egalitarian society and Asia-friendly time zone.

¡°There is a real possibility of making all our institutions better off via a levy on international student revenue,¡± Professor Chapman and Australian National University colleague Rabee Tourky wrote in?.

The Higher Education and Research Group (HERG) consultancy modelling ¡°using certain assumptions¡± shows that if a levy were introduced, net international education revenue would ei바카라사이트r increase or remain unchanged at all but two public universities.

HERG executive chair Keith Houghton said revenue from a levy could help to plug 바카라사이트 ¡°shortfall¡± in research funding. He said redistributing overseas fee income among institutions would be little different from current practice, where earnings at prestigious universities¡¯ business schools are redistributed to o바카라사이트r faculties.

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But a Victoria University found that a 5?per cent levy would generate ¡°economic damage¡± of 15?cents for every dollar raised through 바카라사이트 levy. The researchers warned that demand elasticity among international students was considerable, with a 1?per cent increase in fees triggering a 3.5?per cent cut to international education earnings.

¡°Such a levy would reduce total income from international students, reduce GDP and lead to a reduction in high-quality research,¡± UNSW Sydney economist Richard Holden wrote in 바카라사이트 . ¡°It¡¯s a?terrible idea.¡±

john.ross@ws-2000.com

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