Changes to Australia¡¯s student visa processing regime have sparked a new wave of onshore poaching, with international students jumping ship after completing just months of their degrees.

Western Sydney University (WSU) vice-chancellor George Williams said government measures to restrict student arrivals in Australia had produced an ¡°emerging market¡± of institutions pilfering their competitors¡¯ foreign enrolments.

Williams said the current visa processing arrangements, prescribed under ¡°ministerial direction 111¡±, limited how many students universities could recruit from overseas ¨C but not from each other.

He said WSU had lost a ¡°significant number¡± of foreign students that it had expended ¡°blood, sweat and tears¡± in recruiting, with hundreds failing to return for the university¡¯s second academic term.

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¡°International students are leaving in higher numbers than we¡¯ve seen before,¡± he said. ¡°We don¡¯t know where. They don¡¯t answer their emails ¨C they just move on.

¡°If you fundamentally change how a market operates, it would not be surprising to see a range of perverse incentives coming in.¡±

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The issue is exacerbating a revenue shortfall that threatens to cost WSU up to 400 jobs. Williams said he was considering charging students 12 months¡¯ fees in advance, but was wary of adding to their financial pressures. ¡°We¡¯re in the most price-sensitive market,¡± he said. ¡°Our students are literally scraping together their entire life savings to come to Australia.¡±

Nishi Borra, president of the Association of Australian Education Representatives in India, said other universities had reported similar problems. ¡°Some students are transferring to cheaper institutions or changing their programme of study after the first semester,¡± he said.

¡°Many private providers are not actively recruiting students from overseas but instead are targeting students already in Australia ¨C particularly those enrolled in universities. These institutions often offer lower fees and higher commissions to onshore agents. There is no mechanism to stop this.¡±

prevent international students changing providers within six months or switching to lower-level qualifications. Times Higher Education understands that students sidestep the latter restriction by enrolling in private, dual-sector institutions ¨C those offering both vocational diplomas and degrees ¨C with the intention of only completing the vocational portion of their qualifications.

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The government planned to crack down on this behaviour by banning ¡°onshore¡± commissions, through integrity measures in an . But the amendment bill stalled in the Senate late last year after the opposition vowed to block it over the government¡¯s proposal to cap international commencements, which was also part of the bill.

91ÇÑ×Ó understands that the government now plans to reintroduce the bill without the section relating to student caps. ¡°We¡¯re hopeful that these reintroduced¡­integrity measures will act as a disincentive against this behaviour,¡± said?Phil Honeywood, CEO of the International Education Association of Australia.

Williams said a census of WSU¡¯s current enrolments had revealed that the institution was in better financial shape than originally thought, with next year¡¯s predicted A$79 million (?38 million) deficit revised to A$74 million. He said it was too early to say whether this would reduce the need for job cuts.

But he said WSU¡¯s feat in topping °Õ±á·¡¡¯²õ Impact Rankings, for the fourth year in a row, should help ease the sector¡¯s social licence problems. ¡°This is¡­demonstrated, measurable evidence that we¡¯re delivering things that the community is seeking from universities ¨C real-world impact to improve lives.¡±

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john.ross@timeshighereducation.com