Universities and states will be forced to meet stringent conditions before the Morrison government considers plans to allow the return of international students.
Universities Australia chair Deborah Terry is calling for a national approach to returning foreign students as the nation's coronavirus vaccine program ramps up.
But in the latest game of federal-state pandemic ping pong, Education Minister Alan Tudge put the onus back on other governments to develop plans.
He wants joint submissions from unis and states to be signed off by Chief Medical Officer Paul Kelly and a guarantee quarantine places will be additional to beds for returning Australians.
"Of course we want to get international students back, we do absolutely," he told Sky News on Thursday.
"Our priority has to be and remains to get the Australians back. When it's safe to do so of course we will have international students come back."
Universities insist international students will remain a key revenue source in coming decades despite Prime Minister Scott Morrison pushing new business models.
Mr Tudge said across all universities foreign students are down just five per cent with many doing online courses from abroad.
"Tough, but it's not a catastrophe at this stage," he said.
He said some of the country's biggest institutions including University of Melbourne, Monash University and the University of Western Sydney reported surpluses in the last calendar year.
"Many of our universities are still in pretty good shape," the education minister said.
NSW Treasurer Dominic Perrottet has led calls to bring overseas students back, warning of an $11 billion economic cost.
Mr Tudge acknowledged a hit from the lack of accommodation, travel and living expenses, but said no proposals meeting the federal government's conditions had been lodged.
