This report does not constitute a rating action. Following its re-election in May 2025, the Labor government plans to quickly reverse the sharp influx of foreign student numbers. This will dampen universities' revenue growth and consequently erode rating headroom. But the opposition's proposals would have been tougher. : Hiking the visa fee to a world-leading A$2,000 (US$1,300); Slowing visa-processing once foreign applications reach certain thresholds (a de facto cap); and Lowering the maximum age for holders of temporary graduate visas. The opposition Liberal-National Coalition pitched hard caps on foreign enrolments and a higher visa fee of up to A$5,000 (US$3,200). Chart 1 Foreign students account for one-third of total enrolments (which includes commencing and returning students). And rated universities tend
