Australian International Student “Tax” in Talks; Critics Take Center Stage

In a statement shared by The Student Accommodation Council of Australia, the forum has expressed apprehension against ideas such as taxation on international students who come to the country to pursue further studies. This Australia news for international students has come at the tail-end of a growing housing crisis surfacing in the land down under. 

The forum believes that these short-term quick fixes do more harm than good, ignoring the decades-long housing deficit that has come under the spotlight in recent Australia student accommodation news.  

“Australia needs to be a magnet for global capital and the best and brightest from around the world,” says Matthew Kandelaars, Property Council Group Executive Policy and Advocacy representative.  

The Universities Accord panel, which comes under Australia’s Education Department, believes that this international Student Levy (ISL) is set to release its interim report shortly. The report emphasises that such changes must be ruled out immediately.

“We know that imposing an ISL would have far-reaching effects on the Australian economy.”

Chief Executive of the Independent Tertiary Education Council Australia (ITECA) states that this proposed tax could have unintended consequences, increase students’ cost of living and potentially lower the glowing educational reputation the country has developed in recent years.

Despite the backlash this recent Australia student accommodation news has received, many educational heavyweights in the country believe that some amount of tax levied would be inevitable. This previously private view has received some fuel, with influential economist Bruce Chapman backing the ideas. 

Chapman argues that the likelihood of international backlash of the tax is reduced when one takes into consideration the benefits that the country offers them. These benefits, Chapman believes, are labour market, weather, safety, healthcare, and an Asia-friendly time zone. 

“There is a real possibility of making all our institutions better off via a levy on international student revenue,” Chapman wrote in a column in the Australian.

However, there is a flip side to this Australia news for international students. According to a study conducted by Victoria University found that a 5% levy would generate “economic damage” of 15 cents for every dollar raised through taxes.

“Such a levy would reduce total income from international students, reduce GDP and lead to a reduction in high-quality research.” wrote UNSW Sydney economist Richard Holden for the Australian Financial Review.

Another group, such as the Directors of the Grattan Institute, have blamed the Australia student accommodation crisis on the number of immigrants. Their perspective holds that the government should instead opt to increase student visa fees to, “discourage students intending to complete cheaper, low-value courses from coming to Australia” than apply a levy. Raising student visa application fees to, say, $2500 from $710 could raise around a billion a year, which might aid vulnerable renters. Stay tuned with us to uncover the recent developments.