Deborah O'Neill (NSW, Australian Labor Party) Share this | Link to this | Hansard source

On behalf of the Chair of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I table the interim report of the inquiry into Australia's tourism and international education sectors, Quality and integrity—the quest for sustainable growth. I move:

That the Senate take note of the report.

On behalf of the Joint Standing Committee on Foreign Affairs, Defence and Trade and as Chair of the Trade Subcommittee, I present this interim report into international education, titled Quality and integrity—the quest for sustainable growth. With 29 recommendations, the report explores the future of Australia's international education sector post-COVID as well as options for sustainable growth in the sector.

While this interim report focuses on the international education aspect of the inquiry, it lays the foundation for the broader consideration and discussion of the significant intersection that exists between international education and tourism in modern Australia. It did come as quite a shock to the committee, Madam Acting Deputy President, that there was considerable data poverty about exactly how significant that intersection between tourism and international education is. Figures range from those in the 30s to nearly 70 per cent, so clearly it's a very, very important intersection and it will inform the continuing work of the committee. In 2019, international students contributed $40.3 billion to the Australian economy, including through education related travel, tuition fees and living expenses. The pandemic saw this number almost halve, to $22.5 billion, in 2021. Since international borders reopened in December 2021, there have been very significant signs of a recovery towards pre-pandemic levels of enrolments and commencements.

Beyond its contribution to the Australian economy, international education is an important soft power initiative. Our international alumni who return home are our greatest ambassadors and ideas brokers in both official and unofficial capacities. In this way, the international education market provides Australia with an invaluable opportunity to educate the future leaders of many of our neighbouring countries and contribute to the development of an informed and critical mindset.

The study experience of international students has a substantial impact on Australia's overall reputation, including its position as a high-quality higher education provider, and is essential in order for us to remain competitive with other countries. If we are determined to maintain our profile as a preferred nation of study, Australia must deliver on a world-class education accompanied by positive student and student family and friend experience. The relatively high cost of living and unaffordability of housing were some of the factors that were raised as negatively affecting student experience of international study here in Australia.

To address the issues raised, the committee has recommended the government encourage the expansion of domestic investment in purpose-built student accommodation. We also urge that the government work with local and state government authorities in developing appropriate local accommodation models, including homestay. Further clarification of the roles and responsibilities across the Commonwealth, state and local governments may further enhance the oversight of areas impacting international student experience.

I want to acknowledge the Chair of the Joint Standing Committee on Foreign Affairs, Defence and Trade, Mr Neumann, who joined us for hearings on the Gold Coast, where we gathered really important information about the way in which the local council worked with education providers to overcome an immediate need for homestay, and for the quality of that project.

This is a committee that has taken evidence not just here in Canberra or in the cities; we have travelled to make sure that we captured the variations across this country in regional Australia. Acting Deputy President Polley, I know your passion for regional Australia in north Tasmania, and I note the whip from north-west Tasmania is here as well. The shape of international education looks very different in different places, and we need the full suite of responses to make it a great experience for those who come and spend time with us. Regional Australia is an amazing place for students from other contexts to come and experience Australia.

The first half of this inquiry has demonstrated that international students make really significant contributions to the communities that they stay in. This is particularly the case for regional Australia, as I was saying, where the committee heard that international students play an important role in supporting industries in those areas, such as tourism, and consumers can help fill critical skill shortages in sectors such as health.

Noting that only four per cent of all international students are actually in regional Australia, the committee believes that the government should consider additional incentives to support the promotion of the non-metropolitan areas as study destinations. This evidence was really backed in just a couple of weeks ago, when we took the committee to Victoria. I want to acknowledge the very good roadworthiness of my colleague Mr McCormack, the deputy chair, on our journeys around this country to gather evidence. We certainly heard there that there was an effort to try and integrate study with work in a way that enabled students to fill those work placement requirements to grow their skills but also to get work and payment in learning as they go forward. This is an area I think the government is giving very serious consideration to. It's very much welcomed as a model by employers in regional parts of the country who are looking for people who want to come and contribute and be part of a community as they study in a very sincere and authentic way. Such an arrangement would deal with some of the issues that we've heard about the challenge of having to have a car to get around in regional Australia, which is a very significant dissuader for some of our international students. One thing is clear: there's a great deal of interest in getting to these areas, but there's not always the opportunity being provided.

In relation to marketing Australia's higher education system abroad, the committee believes that the international education sector will be well served by adopting a 'team Australia' approach to marketing and branding. The committee hopes that this recommended initiative will not only build and maintain a national platform for the promotion of quality education offered in our country, but it will also address the issues of fragmentation, duplication and, in some cases, divisive competition that currently exist in the marketing of Australian education to the world. This is something that we hear in the trade committee all of the time. People might not know too much about Australia's federated system. When they think that they're accessing education in Australia but they're actually just talking to people from South Australia or from New South Wales, that adds to a great deal of confusion. There needs to be some smoothing over, more careful coordination and deliberate consideration of how 'team Australia' might really improve the quality of our communications to the world. Keeping in mind the current issue that the sector faces with the high concentration of students from a handful of source markets, the committee believes that 'team Australia', as proposed, should take the lead in prioritising the development of a diversification plan.

The committee heard concerning reports of fraud and criminal activity in the international education sector, including the misuse of the visa system. It cannot be denied that a minority of providers, particularly in the private VET sector, have systematically exploited Australia's education system and broken migration law to funnel vulnerable and unwilling international students into sophisticated operations that in almost all cases lead to labour exploitation and, in the worst cases, indentured slave labour and sex trafficking. This cannot be allowed to continue.

I note the recent announcement of reforms to curb the exploitation of the international education system. This report has put forward a number of measures to further assist the Australian government in stamping out unscrupulous providers and non-genuine students. Some of these measures include reviewing the settings and the framework for the international education regulatory bodies to ensure they empower proactive risk analysis and on-the-ground quality assurance practices.

The committee understands that, in addition to the fragmentation of regulatory arrangements, the lack of coherent information sharing and analysis hampers the ability of the Commonwealth agencies to detect and respond to fraud and criminal activities. It is the committee's opinion that the government should look to implement a more substantial information and data-sharing platform that has the capability of identifying potential trends and supports forward planning across agency risk mitigation.

Finally, given the Department of Education and the Department of Employment and Workplace Relations have policy oversight of the higher education system, it's the committee's view that both departments should be empowered to take the lead role in advising the Minister for Education and the Minister for Skills and Training respectively on whether policy objectives are being achieved in full, including those that are dependent on actions in other Commonwealth portfolios and agencies. Both departments should ensure that appropriate and wholistic measures are include in its annual performance statement.

On behalf of the committee, I extend my thanks to the many stakeholders and submitters who contributed their time and experience to the inquiry. In particular, I want to thank the international students who engaged with the committee for this inquiry. I also thank the deputy chair and all the committee members, particularly Mr Hill for his knowledge, and their general collegiate approach, and the secretariat for their support during this inquiry. I commend the report to the Senate. I seek leave to continue my remarks.

Leave granted; debate adjourned.