Universities and businesses are lobbying against laws to give the education minister the power to cap the number of international students.
They argue it will stifle financial viability and put thousands of jobs at risk but the government says the laws are necessary to better manage a migration system where people are using student visas as a backdoor into Australia.
The proposed changes would add extra repercussions for dodgy education providers found to flout visa rules and take advantage of international students.
The laws were rushed and “designed to deal with a political issue around migration ahead of the next federal election,” Universities Australia said in its submission to an inquiry into the bill.
International student revenue was crucial for research efforts, the Business Council said as it opposed caps.
Greens senator Mehreen Faruqi called the proposal “a migration policy disguised as an education policy” as the government worked to reform immigration levels.
“Labor is crushing universities in a bid to look tough on borders,” she said.
The home affairs department said there had been a growth in “non-genuine students and unscrupulous providers” using the sector as a backdoor to enter Australia.
The universities, business groups, unions, legal experts and the department will on Tuesday give evidence to a parliamentary committee scrutinising the bill.
The committee will report by August 15.