The government is seeking to restrict the number of international university students as part of a plan to curb immigration levels. In Australia, latest data show that one in 33 people is a student from overseas, with education the country’s fourth-largest export.

“Putting something in so quickly may have an outsized impact, certainly on those economies that are most deeply dependent on international students,” Collett said in an interview on Bloomberg Television on Tuesday.

Australia is seeking to address community concerns over high post-Covid migration numbers which are aggravating a national housing shortage, as well as questions over the quality of service provided by some tertiary institutions.

The country has already implemented a number of policies to tighten student immigration, including a 125% increase in visa application fees and tougher English language standards.

While that mainly targeted lower education providers, a cap could have a larger impact on top schools and their ability to invest in research, said Collett.

The impact may be particularly acute for universities that plan their research objectives and budgets years in advance, she added.

“There are some genuine concerns from the education providers that they haven’t had time to really think about what this means,” she said. “You will see an impact on all levels of education providers should this come into effect.”