International student caps to worsen accountant shortage, joint bodies warn

Accounting bodies CPA Australia, CA ANZ and IPA have warned that proposed caps on international student numbers could exacerbate the accountant shortage and have broader economic consequences.

“Australia is already experiencing a shortage of qualified accountants and many other occupations amid soaring demand, and tertiary education is a critical pipeline to train new accountants,” Gavan Ord, CPA Australia’s business investment and international lead, said.

“Any measures that cut the number of genuine international students who wish to study accounting in Australian universities would exacerbate this shortage. It would have a negative knock-on effect on Australian business and the economy.”

Both Labor and the Coalition have proposed policies to limit the number of incoming international students in a bid to address Australia’s housing crisis.

The Coalition policy would cap international students at approximately 25 per cent of total enrolments, a change it said would reduce international students by 30,000 more than Labor’s policy.

“A Dutton Coalition Government will reduce the number of new international students commencing at public universities by at least 30,000 per year compared with Labor, freeing up housing supply in major metropolitan markets,” Peter Dutton said in a press conference on Sunday.

“We will not allow high migration settings to erode living standards, overburden our infrastructure and exacerbate housing shortages in our communities.”

Last year, Labor tried to give the education minister powers to cap international student enrolments depending on the education provider, campus and course. However, the bill failed to pass following opposition from the Greens and the Coalition.

Afterwards, Labor sought to restrict international students with tighter immigration processes, placing a cap on visa applications. Once applications reached 80 per cent of each provider’s cap, subsequent applications would be subject to a slower visa processing stream.

Prospective international students could not apply for a visa without a confirmation of enrolment from an education provider.

Michael Davison, general manager, advocacy and emerging policy at IPA, warned that policies seeking to cap international student enrolments could worsen the accountant shortage.

“Enrolments in traditional accounting-related university degrees are falling, as students are increasingly attracted to emerging industries, such as the technology sector,” Davison said.

“A key part of addressing the shortfall of qualified accountants is broadening the pipeline of accounting students by attracting international students and creating new pathways into the profession. Further reducing the number of students wishing to study accounting in Australia will have serious ramifications for business in Australia and our economy.”

CA ANZ said while it supports strengthening the sustainability, quality and integrity of Australia's international education sector, there are concerns that the planned cap on student numbers would increase pressure on the graduate pipeline and exacerbate the accountant shortage.

"The international education sector plays an important role in developing global accounting talent, but caps like this risk damaging Australia’s global reputation,” Sarah Davidson, education, skills and migration policy leader for CA ANZ, said.

“We made these same points to Labor last year as part of consultations on the Draft International Education and Skills Strategic Framework which proposed caps on international student enrolments.

“Any reform to the migration system should focus on skills and qualifications, not quantity – we don’t want to deter high-quality international students.”

Other commentators have echoed the sentiment that caps on international students could spark broader economic impacts.

“We're in a period of higher global and economic uncertainty, and so now is the time to prioritise growing successful sectors, such as education, where we already enjoy a competitive advantage,” Bran Black, chief executive of the Business Council of Australia, said.

“Let’s remember this sector supports more than 250,000 jobs, and so further reducing international student numbers will risk local jobs and put pressure on businesses that depend on students for their viability.”

The Greens called the Coalition’s proposal to cap international student numbers a racist dog-whistle.

“Dutton’s plan to slash student numbers and triple visa fees is a cynical ploy to stoke fear and division in the lead-up to an election. It’s a smokescreen to cover up the Coalition’s own failures and inaction,” Senator Mehreen Faruqi, deputy leader of the Greens, said.

“Labor must take responsibility for starting this round of punching down on international students with the caps they pushed for last year. We knew this was going to turn ugly and harm so many people of colour living in this country.”

CA ANZ had also previously expressed concern regarding Labor’s caps on international student numbers and the potential impacts on the accounting profession.

“Limits on total international student enrolments … will likely have negative flow-on effects for Australia’s education providers, skills assessing authorities, business, the economy and jobs,” CA ANZ wrote in a submission to the Department of Education’s Draft International Education and Skills Strategic Framework.

“With the accounting profession already facing a declining graduate pipeline, ongoing shortages, and global competition for talent, it is in Australia's interests to provide a destination of choice for international students.”

Ord warned that proposals to cap international student numbers needed to be carefully considered, given their potential long-term impacts on the accounting industry.

“Any proposals to cap the number of international students coming to Australia must be carefully considered and debated. Wrong steps can have significant short and long-term implications for Australia,” he said.

“Australia is at risk of being left behind if we do not attract the next generation of accountants, auditors and other critical occupations.”