Foreign students will shoulder much of the cost of the Australian opposition¡¯s election promises, including extra tax revenue raised through a relaxation on their working hours, if the Liberal-National party coalition wins the 3 May poll.

The coalition expects government coffers to be bolstered by A$417 million (?200 million) over three years through a 12-hour increase to the 48-hour fortnightly limit on overseas students¡¯ working hours during term time.

International education insiders say they were blindsided by the proposal. The 48-hour quota was imposed by the Labor government in mid-2023 to restore integrity to the sector, after the coalition¡¯s pandemic-era removal of restrictions on overseas students¡¯ paid work was blamed for an explosion in enrolments from foreigners lured by employment opportunities rather than education.

International Education Association of Australia chief executive Phil Honeywood said the opposition appeared not to have learned from its 2022 uncapping of students¡¯ working hours.

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¡°On the one hand, we¡¯ve had the coalition arguing that fewer international students will mean the quality of those who come to study in Australia will increase,¡± he said. ¡°On the other hand, any attempt to increase working hours will compromise the ability of overseas students to have a successful study outcome.

¡°We can only see this as another cynical ploy to use overseas students as cannon fodder, in this case just to balance their election costings.¡±

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According to a released on 1 May, the coalition would also raise almost A$3.1 billion over four years through a massive increase to student visa charges, which would be set at A$2,500 or A$5,000 for foreigners enrolled at Group of Eight universities.

This would be offset by a A$389 million reduction in visa fee income resulting from the coalition¡¯s proposed cap on foreign student commencements.

Domestic students would also contribute to the coalition¡¯s savings. The costings document suggests that the government¡¯s A$319.50 weekly ¡°prac payments¡±, for students undertaking compulsory placements during teaching, nursing, midwifery or social work degrees, will now be treated as loans that students must repay ¨C earning the government another A$556 million over four years.

The Australian Services Union said the proposal was a ¡°direct attack on students during a cost-of-living crisis¡± and would force some to abandon their degrees.

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¡°Instead of supporting students and young people with the cost of living, [opposition leader] Peter Dutton and the coalition plan to deny students critical relief, trapping them into poverty while they complete mandatory unpaid placements,¡± said the union¡¯s New South Wales and Australian Capital Territory secretary, Angus McFarland.

The costings also include a A$1.02 billion saving from the coalition¡¯s decision not to proceed with the Labor government¡¯s proposed changes to student loan repayment arrangements, including wiping 20 per cent of accrued debt.

Changes to student loan repayments generally do not affect government budget projections, because they are treated as ¡°off-budget¡± items?that do not contribute to surpluses or deficits. But Monash University policy expert Andrew Norton said loan indexation was ¡°on-budget¡±.

Norton said the proposed increase to the student loan repayment threshold, which Labor plans to reset at A$67,000, would increase indexation earnings by slowing the rate of repayments ¨C although this would be offset by forgone indexation on the forgiven debt.

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The coalition also plans to save A$250 million in federal government teaching grants by prioritising one-year rather than two-year graduate diplomas as entry qualifications for schoolteachers.

It will save another A$23 million by abandoning the government¡¯s proposal for an Australian Tertiary Education Commission.

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john.ross@timeshighereducation.com