Universities across Australia are increasingly relying on private companies to manage city office-block campuses, raising concerns about the implications for international student visa regulations. A recent report highlights how this outsourcing may facilitate “visa hopping,” allowing international students to gain work rights that were not initially intended.
Bill Shorten, former Labor leader and vice chancellor of the University of Canberra, has urged the federal government to implement stricter regulations to close existing loopholes. These loopholes enable international students to switch from university courses to cheaper private providers, which can undermine the integrity of the student visa system.
The report, co-authored by Salvatore Babones, an Associate Professor at the University of Sydney, and published by the right-leaning think tank The Menzies Research Centre, indicates that several universities have outsourced their operations in Sydney’s central business district (CBD) to private companies. Institutions such as Charles Sturt University, Western Sydney University, La Trobe University, and the University of Tasmania have all adopted this model.
According to the report, many of these campuses primarily serve international students, with only a handful admitting Australian citizens. It asserts that “evidence suggests these capital city campuses are increasingly being used as vehicles for the abuse of Australia’s student visa system by non-genuine students seeking entry into Australia for work.” The number of international students on bridging visas who engaged in “course-hopping” surged from 13,034 in 2023 to 107,274 in 2025.
Major urban universities have reported significant financial gains from this international student influx. For instance, the University of Sydney recorded a remarkable surplus of $500 million in the last fiscal year. Conversely, universities located outside metropolitan areas often struggle financially, leading them to seek international students to offset budget shortfalls.
As of now, there are approximately 833,000 international students in Australia, according to data from the Department of Education. The trend of outsourcing campuses raises questions about the quality of education and the motivations of students behind their enrollment decisions.
A spokesperson for Victoria University stated that its Sydney campus, operational since 2007, continuously reviews academic performance and attrition rates to ensure quality education. Similarly, Bill Shorten emphasized that the University of Canberra’s Castle Hill campus, which reported an attrition rate exceeding 93 percent in 2023, is staffed by university academics but managed by the Education Centre of Australia.
Shorten noted that a significant portion of the student body at his institution’s campus comprises international students—specifically, 77 percent last year. He expressed concerns regarding students transferring to private providers after starting their studies. He acknowledged recent government initiatives aimed at reinforcing the integrity of the student visa system, including measures prohibiting agents from collecting commissions for transfers between onshore providers.
Further tightening of regulations may be necessary, according to Shorten. He suggested a review of the visa transfer process, potentially requiring international students to apply for a new visa when transferring to ensure better oversight.
Several universities in Sydney, including Charles Sturt University, Western Sydney University, and La Trobe University, have partnered with Navitas, a company owned by a private equity firm, to operate their campuses. A spokesperson for Charles Sturt University indicated that they monitor student progression and inform prospective students of any partnerships involved in delivering courses.
The spokesperson for Western Sydney University remarked that pass rates at their Sydney City campus align with broader university benchmarks, with around 60 percent of students at that campus being international students. Meanwhile, Navitas emphasized its long-standing collaboration with Australian universities to manage campuses that expand access to quality education for both international and domestic students, expressing support for the recent government reforms aimed at enhancing integrity in the student visa system.
As Australia grapples with these pressing issues, the balance between maintaining educational standards and attracting international talent remains a significant challenge for policymakers and educational institutions alike.
