The findings of the Australian Universities Accord’s final report has been endorsed by the Student Accommodation Council, after the document reaffirmed the need for purpose-built student accommodation.

The Universities Accord, initially proposed by then-Shadow Education Minister Tanya Plibersek in 2021, aims to reduce political disputes over higher education policy by mirroring the landmark Prices and Incomes Accord. This accord, set up in 2022, focuses on implementing lasting reform and a long-term plan for higher education. The final report finds “significant change” is needed in higher education if Australia is going to have the skills and knowledge it needs to support its economy and society.

In a built environment context, the report indicates that universities should look to implement strategies to house international students, as opposed to an increased demand in the private rental market being felt.

Student Accommodation Council Executive Director Torie Brown believes student accommodation is a win-win for the Australian property market, as it provides students with purpose-built, well-located facilities and is also a growth asset for its owners.

“The fastest way to add much-needed student housing to the market is for universities to partner directly with the purpose-built student accommodation (PBSA) sector,” she says.

“PBSA has a crucial role to play in providing safe, high amenity housing for students who are a vital source of life for our CBDs. The sector takes nearly 80,00 students out of the general rental market each year

“We were pleased to see the Accord mention the important role PBSA plays in the market, and we would like to work with the Government to grow the pipeline of supply going forwards.”

While endorsing the recommendations on housing strategy, Brown was cautious in regards to proposed additional taxes on university revenue.

“Any tax on university revenue is also a tax on international students – who are one of the biggest revenue sources for the higher education sector,” Ms Brown said.

“International students are already spending upwards of $30,000 per year to study at a top Australian university. We urge universities not to pass this tax on to international students, which may cause them to consider more affordable countries to study in.

“We produced a report in 2022 which showed students living in PBSA spend on average $4,800 in Melbourne and $4,680 in Sydney per month on eating out, recreation and retail. The economic impact of having these students in our CBDs is huge – we cannot afford to lose them to competitor jurisdictions like Canada and the US.

“If these taxes get passed on through university fees, we will begin to degrade our competitive edge in the global marketplace.”

To read the report in full, click here.

 

Image: Gillies Hall at Monash University.