The University of Newcastle is among several tertiary institutions that have expressed concern about the federal government's new migration strategy, which they say has "significant financial repercussions" for universities.
The Newcastle university co-signed a letter to Home Affairs Minister Clare O'Neil saying it supported the strategy, which includes stronger English-language requirements and new "genuine" student requirements, to reduce the number of non-genuine students entering Australia through high-risk institutions.
"However, the way in which the strategy is being implemented through the de-prioritisation of visa processing means that multiple universities are facing significant financial repercussions," the letter co-signed by 16 universities said.
A Sydney newspaper reported some universities and private colleges had cancelled international student enrolment offers to protect their "risk ratings", which are ranked based on universities' likelihood of recruiting genuine students.
Visa applications for universities with the lowest risk rating are processed more quickly than higher risk institutions.
The newspaper reported University of Newcastle was ranked as a level 2, with level 1 being the lowest risk and level 3 being the highest risk.
However the University of Newcastle says it has not cancelled enrolment offers to international students and is not planning to.
The February 8 letter said since the prioritisation of level 1 institutes, visa processing times at many institutions had been significantly delayed compared to 2023.
"This poses significant concern to our institutions and also for the wider sector, with affected universities facing considerable financial impacts due to a significant decrease in student enrolments for 2024," the letter said.
"Given the ongoing recovery from the impacts of COVID-19, this situation is particularly alarming.
"In fact, the 16 institutions endorsing this letter conservatively estimate a collective revenue downturn of approximately $310 million in 2024 alone, akin to the impact of the pandemic.
The universities said there was also concern that the extended wait times for a visa decision may lead students to choose a university based on "the path of least resistance" rather than the best fit.
"Instances are already emerging of students seeking refunds, and then instead applying to a 'priority university," the letter said.
"This not only diminishes the student study experience but also tarnishes the reputation of Australia's largest service export.
"Collectively, we urgently seek your attention to these matters, adjusting the prioritisation of visa processing timelines to ensure all universities are serviced promptly and fairly."
