Another year of Ministerial Direction 107 would be disastrous for Australia

Statement from Professor Theo Farrell, Vice-Chancellor, La Trobe University: 

We are deeply disappointed by the failure of the Senate to pass the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 (ESOS), which would have brought certainty to what has been an extremely challenging time for many universities in Australia. 

We note with dismay the intent for Ministerial Direction 107 (MD 107) to remain as the primary mechanism for controlling the inflow of international students to Australia.

MD 107 is a blunt and opaque instrument that has caused financial havoc on Australian higher education and does not serve the nation’s interests.

It has led to a handful of very large metropolitan universities becoming even larger, with some increasing international student numbers by over 40 per cent in one year. At the same time, many smaller universities, mostly in outer metro and regional areas, have suffered catastrophic losses in student numbers, devastating their finances and requiring cuts to courses and services delivered to Australian students. 

MD 107 has been an own goal for the Government, as many of the most impacted universities are at the forefront of delivering on the national skills and workforce agenda, particularly among underrepresented and regional communities. 

At La Trobe, we are investing $170 million in a self-funded health innovation strategy to become the largest producer of health graduates in Australia. We have made a strategic commitment to tackling the chronic shortage of nurses, midwives and allied health professionals by growing our capacity to produce more than 5000 healthcare workers annually by 2030. Another year of MD 107 threatens to derail this vitally important program. 

It is imperative that the Government now moves quickly to replace or amend MD 107 with an alternative approach that provides for a sensible distribution of international students in 2025, enabling small and medium-sized universities to rebuild finances after a devastating year, and continue the vital work of developing the workforce of the future in outer metro and regional Australia.  The country cannot afford a re-run of 2024.