Labor’s landslide should prompt a rethink on international students

The party’s enhanced power in Canberra means it can develop a more progressive agenda closer to its own values, says Andrew Deuchar

May 12, 2025
Anthony Albanese visits an Italian ice cream bar in Sydney, illustrating Labor's potential openness to more international students
Source: Asanka Ratnayake/Getty Images

Long before the Coalition blocked Labor’s plan to cap the number of international students in Australia last November, the debate was tinged with xenophobia and mired in dirty politics.

The discussion unfolded in a political climate that saw historically left-leaning parties move to the right in an attempt to gain ground.

Throughout this debate, advocacy groups have consistently pointed out that the international education sector is Australia’s largest service export, worth A$51 billion (£25 billion) in the last financial year.

These numbers were compelling, but they just weren’t cutting through with politicians. Both major parties seemed intent on scoring an economic own goal for the sake of winning the game of politics.

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But last week’s election result changes the game. With a clear majority in the House of Representatives, Labor can now reintroduce the legislation to the Senate. And because the party will only need the support of the Greens to pass a bill there, it can develop a more progressive agenda closer to its own values.

The political reasons for doing so are now abundantly clear. The Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 always carried the scent of Trumpian politics. In Australia’s new political climate, that scent has become a stench.

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Data from the Australian Electoral Commission shows that the Labor government performed especially well among culturally diverse groups in the election. Polling booths with a high number of voters from Chinese backgrounds helped make close contests of seats that the Liberal party expected to win, like Menzies. These voters also helped Labor win Deakin, unseating shadow minister for housing Michael Sukkar in the process.

Meanwhile, electorates with a high proportion of voters from Indian backgrounds secured Labor victories in Melbourne’s outer western suburbs. The Liberal party failed to make inroads in a region considered a key election battleground.

Culturally diverse groups, then, are key players in Australia’s democracy and politics, and many are likely to have settled in the country having come as international students. For prime minister Anthony Albanese, capping the number of international students in Australia sector might erode this emerging support base.

What is more, the Greens have consistently opposed the student caps policy on the grounds that it scapegoats international students for a housing crisis they didn’t cause and will damage Australia’s reputation as a destination for international students.

Despite their disappointing election result, the Greens look set to maintain 11 seats in the Senate. With Labor projected to secure at least 28 seats, this means the student amendment bill will only need the Greens’ support to secure a majority. This paves the way for a more serious and progressive approach to reforming the international education sector.

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Moreover, apart from the income it generates, a key rationale for the growth of the international education sector is building stronger bilateral ties. By increasing the flow of students across borders, deeper and more harmonious ties emerge between nations.

This is why, for the past two decades, the Australian government has mainly sought to increase the number of international students studying in the country. And it is a rationale that has paid off. Despite the difficulties studying abroad can entail, many of these students have gone on to make key contributions to business, industry, academia and government in Australia and abroad.

In this context, it is not insignificant that most international students in Australia come from China and India – global superpowers tipped to be the world’s largest national economies by 2050. Strengthening Australia’s international education sector will go a long way toward building strong ties with these nations.

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As the geopolitical world order is being renegotiated, with the US becoming a less reliable ally, it would be surprising for the Labor government to hurry through legislation that might compromise Australia’s diplomatic ties across Asia and beyond.

It is true that international student growth cannot continue indefinitely, but a stronger international education sector is not necessarily a larger one. It is one that builds deeper ties between nations and that better supports the well-being of international students.

Ultimately, Labor’s election victory clears the slate for a more serious and even-handed discussion about international education. There is no doubt that significant challenges lie ahead for the sector and for the nation, but it is downright unfair how often international students are blamed for problems.

The next chapter of this debate must include greater input from them – and from organisations that represent their interests.

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Andrew Deuchar is senior lecturer in education policy at Victoria University.

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