International education is one of Australia’s great success stories, delivering education services to more than three million international students in the past 20 years. International education has increased its vital role in Australia’s social, cultural and economic prosperity, generating almost a quarter of a trillion dollars for the Australian economy over the last ten years. In 2015, it contributed $19 billion to the Australian economy and by 2019 this had more than doubled to $40.3 billion.

The last decade has seen both a rise in student numbers and a concentration of students from a narrow band of countries. While these students are welcome, the lack of diversification puts the sector at risk from market shocks and hampers sustainability. As international student numbers increase, Australia needs to seek a greater diversity of students entering the country. The importance of diversification also includes encouraging study across a broader range of courses aligned with Australia’s skilled workforce demands.

Risks to the international education sector’s sustainability, changing bilateral relationships with key partner countries, innovations in education delivery and the skills needs of a rebounding Australian economy have been transforming the delivery of international education, even before the impact of the COVID-19 pandemic. The effects of COVID-19 accelerated many of these challenges and highlighted the need to embrace new ways of engaging with students locally and overseas for Australia to remain globally competitive.

Forming a central part of the review’s sector and public consultation process, this paper explores how the sector can remain competitive by ensuring the legislative and policy frameworks underpinning international education support diversification and growth into the future and continue to be a world-leading regulatory framework. The refreshed framework will support education providers to deliver an optimal Australian education experience to current and future students.