Universities across Australia are increasingly outsourcing operations at city office-block campuses to private companies, raising alarms about the potential for misuse of the student visa system. A recent report highlights how this practice has facilitated “visa hopping,” allowing international students to gain work rights through questionable means.
Former Labor leader and current vice chancellor of the University of Canberra, Bill Shorten, has urged the federal government to implement stricter regulations to address loopholes that enable international students to shift from university courses to cheaper private providers. The report, co-authored by Associate Professor Salvatore Babones from the University of Sydney and published by the right-leaning Menzies Research Centre, reveals that many private entities manage campuses for universities, often catering exclusively to international students.
Growing Concerns Over Visa System Integrity
Several universities, including Charles Sturt, University of Tasmania, Victoria University, and Western Sydney University, have outsourced their operations in the Sydney CBD and North Sydney to private firms. The report indicates that these campuses primarily serve international students, with many of them operated by for-profit companies on behalf of the universities.
The study noted that the number of international students on bridging visas who are “course-hopping” increased dramatically, rising from 13,034 in 2023 to 107,274 in 2025. This trend has drawn scrutiny, particularly as major universities in metropolitan areas report strong financial outcomes. For instance, the University of Sydney posted a surplus of $500 million last year.
In contrast, regional universities have struggled financially, often turning to the international student market to alleviate budget constraints. According to the Department of Education, Australia is home to approximately 833,000 international students.
Responses from University Leaders
A spokesperson for Victoria University confirmed that its Sydney campus has been operational since 2007. They emphasized their commitment to academic performance and student retention. Meanwhile, Bill Shorten highlighted that the University of Canberra’s Castle Hill campus is managed by the Education Centre of Australia, yet staffed with university faculty. He expressed concern over the high attrition rate, which exceeded 93 percent in 2023, particularly among international students, who constituted 77 percent of enrollees at that campus.
Shorten acknowledged steps taken by the government to enhance the integrity of the student visa system, including recent measures by Julian Hill, Assistant Minister for International Education, to prohibit commission payments to agents for onshore transfers. He called for further regulations, suggesting that a stricter system requiring international students to apply for a new visa when transferring could bolster system integrity.
Universities such as Charles Sturt, Western Sydney, and La Trobe have their Sydney campuses managed by Navitas, a private equity-owned company. A spokesperson for Charles Sturt indicated that the university closely monitors student progress and informs prospective students about any partnerships related to course delivery.
In a similar vein, a representative from Western Sydney University noted that pass rates for students at their Sydney City campus align with university standards, with international students making up 60 percent of the campus population.
Navitas affirmed its longstanding partnerships with Australian universities to enhance access to quality education. The company expressed support for government reforms aimed at maintaining integrity within the student visa system.
As the debate surrounding the outsourcing of university operations continues, the implications for international students and the integrity of Australia’s education system remain significant.
