Australian CEO Suggests Implementing Infrastructure Tax on International Students
According to Freelancer tech CEO Matt Barrie, Australia’s international education sector operates like a Ponzi scheme. He suggested imposing an infrastructure levy on international students to recoup the costs they impose on the Australian economy and society.
Barrie highlighted that many international students come to Australia not solely for studying but for work opportunities, suggesting that the country is essentially selling visas. He criticized the low standard required for international students to prove they can afford to live in Australia, stating that the current threshold of $29,710 is inadequate.
He also pointed out videos on platforms like YouTube and TikTok where international students showcased getting free food from the Australian system, raising concerns about the misuse of the system.
Barrie further criticized the enrollment of international students in impractical study programs, questioning the value of qualifications obtained from certain vocational or English courses.
He alleged that the inflow of “fake students” was contributing to a cost of living crisis, impacting Australian children’s education by causing dropouts.
Barrie disputed the reported figure of $47.8 billion in contribution from international education to the Australian economy, calling it a statistical trick. He explained that the method of accounting for international student expenses as exports was misleading.
Regarding the strain on Australia’s infrastructure, Barrie emphasized the need for international students to pay a substantial infrastructure fee to cover the true costs they impose on society. He argued that this fee could help differentiate genuine students and skilled migrants from those looking for easy pathways to permanent residency.
As the Australian government announced a cap on international student intake at 270,000 for 2025, Barrie’s comments shed light on the ongoing debate surrounding the economic impact and management of the international education sector in the country.
