Luke Sheehy, CEO, Universities Australia
As we enter 2025, Australia faces profound changes—digitalisation, energy transition, demographic shifts, and geopolitical uncertainty. The decisions we make now will determine how we navigate these challenges.
Australia’s universities are critical to our success. They deliver the high-level skills our economy demands, conduct the research that drives innovation and contribute significantly to our national prosperity.
From training the engineers modernising our energy grid to tackling global health crises and developing cutting-edge technologies, universities are at the forefront of addressing the most pressing challenges of our time.
At the heart of this mission lies international education, one of Australia’s greatest success stories. As the nation’s fourth-largest export, it generates $40 billion annually and supports thousands of jobs.
More importantly, it serves as a bridge to the world, strengthening ties with key regions, fostering collaboration and building cultural understanding. Students who come to Australia bring fresh perspectives, enrich campuses and communities, and gain access to world-class education. Many return home as lifelong ambassadors, while others stay to contribute their expertise to sectors like healthcare, technology and engineering.
Looking ahead, international education will be critical to addressing global challenges and advancing Australia’s ambitions in renewable energy, advanced manufacturing and technological breakthroughs. A skilled, diverse workforce, shaped by international graduates, will drive progress. Yet the sector remains under pressure, with ongoing impacts from COVID-19 and visa challenges, and universities forecasting a $500 million shortfall in 2024.
Rebuilding this sector must be a priority. By addressing barriers and supporting international education, Australia can reaffirm its status as a top destination for global talent. With world-class institutions and welcoming communities, we are well-placed to strengthen the partnerships and mutual benefits that make international education a cornerstone of global progress.
The Australian Universities Accord outlines a clear vision for the future, calling for an expanded, more accessible and better-resourced higher education system. By 2050, universities must double the number of domestic students they educate annually – from 900,000 today to 1.8 million. Achieving this will require significant investment in teaching, research, and infrastructure, alongside strategies to rebuild and diversify international student markets.
The Albanese Government has taken steps to support these goals, with initiatives like the National Reconstruction Fund and Future Made in Australia Act. But these efforts depend on a thriving university system to deliver the skilled workforce and innovation needed to succeed.
Delivering on the Accord’s vision requires immediate action to address financial pressures and providing the stability needed for universities to plan and grow. This includes resources to expand access to education, boost participation and support the sector’s critical research efforts. These investments are not optional— they are the foundation of Australia’s economic and social future.
Australia’s universities are ready to partner with government, industry and communities to tackle the major challenges and opportunities ahead. Together, we can ensure our nation thrives in an era of rapid technological, social, and environmental change. But this requires ambition and commitment.
The question is no longer whether universities matter—it is whether we will support them to deliver. A stronger, more sustainable Australia depends on their success.
