Australia’s international education sector faces fresh uncertainty as the ESOS Amendment Bill fails to gain necessary support, jeopardizing the lifting of Ministerial Direction 107 (MD107). Education Minister Jason Clare has confirmed that MD107 will remain in place unless the Bill passes, a prospect now dimmed by the Coalition’s opposition.
The ESOS Amendment Bill, which aims to cap international enrolments and overhaul student visa processes, was expected to pass by year-end. However, its defeat prolongs the contentious MD107 directive introduced in December 2023. Under MD107, student visa applications are prioritized based on the risk profile of education providers and the applicant’s citizenship, disadvantaging regional and equity-focused universities.
Critics argue MD107 exacerbates inequity and hinders Australia’s international education competitiveness. Charles Sturt University Vice-Chancellor Renée Leon described the policy as “disastrous,” highlighting its disproportionate impact on regional universities and communities. The university estimates losses of AUD$40 million, with regional workforce shortages worsening due to delayed or refused student visas.
“MD107 has failed. While metropolitan universities see rising international student numbers, regional universities have suffered a nearly 40% decline,” said Leon.
The Regional Universities Network (RUN) and Innovative Research Universities (IRU) are united in urging the government to revoke MD107 immediately. They call for a visa processing framework built on fairness, transparency, and equity, warning that the current policy undermines diversity and long-term sector growth.
“Regional universities play a critical role in providing access to education and addressing workforce shortages, yet their students and communities bear the brunt of MD107’s shortcomings,” said Alec Webb, CEO of RUN.
IRU Executive Director Paul Harris emphasized the need for reform, stating that MD107 has stripped resources from universities pivotal to diversifying Australia’s international student population.
Luke Sheehy, CEO of Universities Australia, warned that MD107 has already cost the economy AUD$4 billion and placed thousands of jobs at risk. “Australia’s universities are being used as political leverage in migration debates, despite their crucial role in the nation’s prosperity,” Sheehy said.
With commencements down significantly for regional and outer metropolitan universities, education leaders are calling for urgent government action to mitigate the policy’s damage. They argue that international education, one of Australia’s largest export sectors, deserves strategic investment, not political neglect.
