Chinese students account for one-third of revenue at leading Sydney universities

A recent report from the New South Wales auditor general reveals that 78% of all revenue from overseas students at the University of Sydney came from Chinese nationals last year. At the University of New South Wales, the figure was 77%.

In monetary terms, Chinese student fees totaled AU$1.25 billion (US$800 million) at the University of Sydney, and about $1.087 billion at UNSW. These amounts represent not just a significant portion of international student revenue, but nearly one-third (32%) of each university’s total annual revenue.

Across all ten universities in New South Wales, Chinese enrolments generated 16% of combined revenue. Without this contribution, the sector’s $583 million surplus would have turned into a $1.754 billion deficit.

At six of the ten institutions, China was the leading source of international student revenue in 2024, compared to seven in 2023. These universities include Charles Sturt University, Southern Cross University, University of New South Wales, University of Newcastle, the University of Sydney, and University of Technology Sydney.

In total, overseas students contributed $4.3 billion in course fees to NSW universities last year, up from $3.4 billion in 2023.

Students from the top three countries of origin - China, India, and Vietnam - accounted for $3.1 billion in fees, up from $2.5 billion in 2023. This figure slightly exceeded the total revenue NSW universities earned from domestic students in 2024.

For over five years, the top three source countries had consistently been China, India, and Nepal. Although Vietnamese enrolments were lower than Nepalese, Vietnamese students generated higher revenue.

The report warns that the dominance of Chinese enrolments poses "a concentration risk for each university and for the NSW university sector as a whole."

It adds that "unexpected shifts in demand arising from changes in the geopolitical or geo-economic landscape, or changes to visa approval rates or travel restrictions, can impact revenue, operating results and cash flow."

Policy shifts have unintentionally reinforced this dependence. Higher visa fees have been more easily absorbed by Chinese applicants, and the now-repealed ministerial direction favoring "low immigration risk" countries also benefited China, according to Times Higher Education.

Australian universities are now facing a proposed cap on international student numbers, with a bill introduced to parliament by the education minister that would grant him broad powers to set limits on new international enrolments by course and provider.

Since late 2023, Australia has tightened student visa regulations to better manage immigration. These measures include shortening post-graduation stay durations, raising English-language proficiency standards, prohibiting conversions from tourist visas to student visas, and increasing financial proof requirements by about 20%, now set at approximately AUD$29,710 (US$19,820).

Senator Mehreen Faruqi, Deputy Leader of the Australian Greens and Spokesperson for Higher Education, told The Guardian that "international students had been doing the ‘heavy lifting’ on university funding when it should be the government’s role."

"International students should be welcomed and not treated as cash cows or scapegoats for the government’s failures," she said.

According to Australia’s Department of Education, the country welcomed more than 1.095 million international students last year, the highest number on record.

More than half of those students came from five key countries: China (22%), India (16%), Nepal (8%), the Philippines (5%), and Vietnam (4%).