Warning on education export costs

High tuition fees and living expenses could place Australia’s reputation as an education destination for international students in jeopardy, according to global research from HSBC.

The report, ‘The value of education: springboard for success’, found that about 20 per cent of Australian tertiary students came from overseas, well above the 7 per cent global average.

This means Australia has the highest concentration of international students in the world, underpinning education as the nation’s third largest export.

At more than $US42,000 per year inclusive of fees and living costs, however, Australia is the most expensive higher education provider out of 15 surveyed, ahead of the US and Singapore, at $US36,000 and $US39,000 respectively.

While high tuition fees was a driving factor behind the high costs, living costs were also substantial compared with competitors such as France, the US and the UK.

Australia was ranked in the top three nations for education by 25 per cent of parents surveyed, placing it third after the US (51 per cent) and the UK (38 per cent), and ahead of Canada (20 per cent).

Chinese parents, the most significant source of international students to Australia, were less generous, ranking Australia equal fifth with Canada.

Around 76,000 Chinese students were enrolled in Australia’s universities in 2013, significantly more than neighbours Malaysia and India.

HSBC head of retail banking and wealth management Graham Heunis said Australia’s high quality of life had enabled it to punch above its weight in attracting international students.

“China’s growing middle class means that it will continue to represent a significant part of the international student market, globally,” he said.

“Attracting Chinese student intake will be a key factor in maintaining education’s role as a key export sector for Australia.”