Education Minister Jason Clare wants debate on proposed international student income fee levy

The levy is among a number of ideas being considered as part of major review of the higher education sector.

The Australian Universities Accord panel interim report, released on Wednesday, states that the levy could "provide insurance against future economic, policy or other shocks" or be used to fund infrastructure and research.

Asked about the idea of a levy at the National Press Club on Wednesday, Mr Clare said he wanted "people to think" about it.

"Government can't fund everything," he said.

"There are things that people in this room want funded, whether it's research, or whether it's more infrastructure, whether it's student housing.

"Generally, you want people to have a conversation about, one is it a good idea or not, and two, if it is an idea that's got some merit, what might it look like and what might it do."

READ MORE:

But the group of eight leading universities have warned that an international student levy could risk Australia's global reputation.

"We must be mindful to avoid the risk that proposals, such as a levy on international students, don't undermine our nation's hard-won and enduring successes in areas such as our global strength in international education," a statement from the Group of Eight said.

"We must ensure that the Accord process does not have unintended consequences that impact our global reputation."

According to the report, international students fees are the second largest contributor to university revenue, bringing in around $8.7 billion in 2021.

But the report also states that the review considers international education "less as an industry and more as a crucial element of Australia's soft diplomacy, regional prosperity and development".

Universities Australia chief executive Catriona Jackson said there would be "a range of views on whether the levy is the right kind of approach".

"We certainly do need a more sustainable model for funding research, whether this is it, that's a matter for debate," she told journalists.

At the same time, the report notes that university research has become "too reliant on uncertain international student funding and needs to be put on a sounder and more predictable footing".