“Australia’s universities have been allowed to transform into little more than degree factories for international students. This may be profitable for Vice Chancellors, however we are seeing Australian students drop out in record numbers,” said Brianna McKee, Research Fellow at the Institute of Public Affairs.
Today, the IPA published new analysis of federal Department of Education data into the completion rates of domestic and international university students at Australian universities. The research reveals:
- A quarter of all domestic students who commenced a bachelor’s degree in 2017 had dropped out by 2022.
- A record low of just 62 per cent of domestic students had completed their degree.
- In stark contrast, six-year dropout rates among international students reached a record low of 19 per cent, and the completion rate of international students was 79 per cent.
- Since 2000, the number of enrolments of international students has increased by 370 per cent, compared to an 84 per cent increase in domestic students.
- International students increased from 14 per cent of all university students in 2000 to 29 per cent in 2020.
“The rise of remote learning, lowering of academic standards, the deterioration in campus culture, as well as the overt catering for international students, are all contributing to the unacceptably high number of domestic students leaving university without a qualification,” said Ms McKee.
“The university model in Australia has shifted away from education and towards the business of maximising revenue, which has contributed to declining standards and the prioritising of international over domestic students.”
The research also establishes that six of the Group of Eight universities have proportions of international students higher than the overall average, the two exceptions being the University of Adelaide and the University of Western Australia.
“Previous IPA research revealed the claims from the tertiary education sector that international education exports are worth $48 billion per annum is overstated by $16.5 billion, 50 per cent above its actual worth,” said Ms McKee.
“Australians are entitled to ask our Vice Chancellors, whose exorbitant salaries are propped up by the numbers of international students, as to whether or not the university model is delivering for Australian students, who must, at all times, be the priority of the sector.”
In addition to declining domestic student completion rates, the federal government’s 2023 Migration Review acknowledged international students placed pressure on housing and local infrastructure, especially in communities that do not benefit from the value international education exports.
“While international students are an important, albeit overstated, market for our university sector, the pursuit of this revenue must not come at the expense of educational quality for domestic students, as well as housing and social infrastructure,” said Ms McKee.
“The federal government’s own data shows the current approach is having a negative impact, which is why it has never been more important to impose effective hard caps on international student numbers and to get the sector’s priorities geared towards educating the next generation of Australians.”
To download the IPA’s research click here.
