The Australian Chamber of Commerce and Industry (ACCI) is urging the federal government to scrap its bill to cap foreign students as well as its de facto cap otherwise known as Ministerial Direction 107 (MD107).

Australia’s largest and most representative business network is making the call following confirmation the Coalition along with the Greens will not support the bill to cap foreign students, meaning it will be defeated in the Senate.

ACCI chief executive officer Andrew McKellar says the government should remove the bill and scrap MD107.

“With the government’s cap now doomed to defeat in the Senate, the best thing to do to give certainty to one of our biggest exporters is to scrap both the legislation and the proposed cap on international students,” said Mr McKellar.

Mr McKellar also said that the MD107 has already done damage to Australia’s international education providers.

“This bill would lead to job losses, cause damage to genuine providers, and tarnish Australia’s reputation as a welcoming destination for international students.”

“Whilst we agree that quality world class education should be at the heart of what our international sector provides, this blunt approach is not the way to go about it.

“The government should scrap the legislation as well as MD107 and enter into further consultations with education providers about the best way forward.”