CAPA Pre-budget Submission 2026-27

According to the latest data from the Department of Education, over 1.6 million university students are currently enrolled and studying at Australian Universities. The number of postgraduate students has risen dramatically over the past decade, from 376,055 to 574,548 students. Whilst many of these students are young adults who need to balance engaging in their education and securing an income to cover the cost of living,  according to the Department of Education, the majority of postgraduates, both coursework and research, are 26 or older. 

Collectively, CAPA represents 228,000 students from high-demand STEM related fields such as engineering, health, mathematics, and computer science. Moreover, we represent almost 200,000 future thinkers, creatives and educators who will inspire the next generation of Australians.

These are the students that will drive Australia’s future productivity. Moreover, supporting these students to complete their studies quickly and effectively, ensures that they are able to rapidly translate their new found technical knowledge to the economy. Whereas, leaving them to languish and rely on insecure work to make ends meet, places a negative drain on Australia’s productivity.

Recommendations:

1. That the Research Training Program (RTP) Stipend base rate be increased to the equivalent of the minimum wage and continue to be indexed annually to maintain its value.
2. Increase the RTP funding pool available to universities to accommodate the changes to the RTP stipend base rate.
3. The RTP Stipend for part-time candidates be included under Income Tax Assessment Act 1997 (Cth) as ‘educational purposes’ and treated as tax-exempt income.
4. Establish the stipend Period of Support under section 1.6.5 of the Commonwealth Scholarships Guidelines (Research) 2017 as 4-years, with extensions up to 5-years, or part-time equivalent.
5. The Commonwealth Prac Payment program be extended to all postgraduate students (domestic and international) who must undertake a mandatory placement to complete their degree.
6. That the Federal Government immediately increase funding for the Indigenous Student Support Program (ISSP) program.

CAPA believes that the migration policy of Australia should recognise the value of international postgraduate students who are educated within Australia. These graduates are able to transition from being temporary migrants to permanent, skilled migrants. Their existing period of study in Australia ensures that they have lived, studied and worked in Australia. Moreover, they have begun integrating into our society. The focus of our migration policy should be on ensuring that the labour market is set up to support temporary migrants, undertaking international education, to transition into skilled migrants.

International students are a critical part of Australia’s higher education system. It is critical to building Australia’s soft power, whilst also contributing $52 billion a year to the economy, and supporting 250,000 jobs. As can be seen, due to changes in visa prices, international education policies and political rhetoric, international student commencements have begun to flatline.

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CAPA recommends that in order to drive effective skilled migration, that the Federal Government invests in providing subsidies/scholarships to international students enrolling in areas of national priority, and working with business to develop targeted internship to employment pathways for talented international students.

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CAPA encourages Australian to leverage these advantages to become a regional higher education hub for South Asia, provide long-lasting education which supports individuals across their entire career, and mould individuals with capabilities that support them in growing and giving back to the Australian community across their career as a skilled migrant.