Australia's university sector is gearing up for a significant public relations offensive, preparing to launch a nationwide advertising campaign that underscores the critical economic role of foreign students. This move comes amid rising public sentiment against current immigration levels and increasing political pressure from both major parties to reduce intake numbers.
The Political Backlash and the Sector's Response
Public opposition to migration has crystallised in recent polling, with the Lowy Institute Poll finding 53 per cent of Australians are opposed to the current level of migration. This sentiment has been amplified by political figures like One Nation leader Pauline Hanson, who has previously criticised foreign student arrivals as "an unsustainable backdoor to mass immigration."
On the government benches, Liberal backbencher Andrew Hastie has crowdfunded a substantial $260,000 to campaign for lower immigration levels, signalling deep concern within the coalition. In response, the International Education Association of Australia (IEAA), led by CEO Phil Honeywood, is mobilising the sector to hit back.
Honeywood, a former minister in the Victorian Liberal Government, told The Issue Podcast by 7NEWS that Hanson's narrative was "wacky" but appealed to a segment of voters. He argues the economic contribution is being dangerously overlooked. "International education is Victoria’s number one industry, South Australia’s number one industry. It’s in the top five in New South Wales and in Queensland," Honeywood stated.
Data Reveals a Sector Under Pressure
The push for a pro-education campaign coincides with new data showing signs of strain in the sector. The latest figures from the Australian Education Department reveal that in the year to October 2025, 833,041 international students studied in Australia. This represents a slight 0.3 per cent decline from the same period in 2024.
More strikingly, the number of new student commencements in 2025 fell sharply. Only 190,799 new students began studying in Australia in 2025, a 15 per cent decline compared to 2024. The student population remains heavily concentrated, with 57 per cent hailing from just five source countries:
- China (23%)
- India (17%)
- Nepal (8%)
- Vietnam (4%)
- The Philippines (4%)
This decline follows significant policy changes by the Labor government, including hiking student visa application fees to $2000 and capping work hours at 48 per fortnight.
A Bipartisan Squeeze and the Road Ahead
Pressure on the sector is coming from all sides. Shadow Home Affairs Minister Jonathon Duniam highlighted the strain on housing, noting that "50 per cent of international students are in private rental accommodation, that does put pressure on the rental market." Both major parties are now pressuring universities to build more student housing to alleviate this issue.
The opposition has indicated it will pursue even deeper cuts when it releases its immigration policy this year. Meanwhile, the government maintains its settings are working. Cabinet Minister Mark Butler told 7NEWS, "We are getting that balance right, we’ve got those numbers down."
Federal Treasurer Jim Chalmers' recent population statement projects that net overseas migration will moderate to 260,000 in 2025-26, down from 306,000 in 2024-25, and decline further in subsequent years. Chalmers stated the government would use the evidence from the statement to continue refining its approach.
In this contentious climate, Phil Honeywood and the IEAA are pushing universities to fund a coordinated campaign. The goal, he says, is "to try and counter some of this incredible race to the bottom, knee-jerk sort of anti-migration narrative." He emphasises that more than 70 per cent of international students return home after their studies, countering the perception of a permanent migration surge. The coming public debate will likely determine the shape of one of Australia's most valuable export industries for years to come.
