“We have always believed MD107 was an inequitable tool that unfairly advantaged the already very large metropolitan universities while devastating others, causing financial losses that have required the hard-hit universities to cut staff, courses and services to Australian students,” Professor Farrell said.

“We are delighted the Federal Government has listened and acknowledged that MD107 unevenly impacted education providers, replacing it with a sensible approach that will support universities like La Trobe to continue to address Australia’s workforce shortages in health and education, including in regional areas.

“International students have had a longstanding connection with Australian universities, from the Colombo Plan of the 1950s to today.  They not only support financial stability but bring new knowledge and experiences and help to build Australia’s soft diplomacy across our region.

“At La Trobe, we are using income from international students to invest  $170 million in a self-funded health innovation strategy to become the largest producer of domestic health graduates in Australia. We have made a strategic commitment to tackling the chronic shortage of nurses, midwives and allied health professionals by growing our capacity to graduate well over 5,000 healthcare workers annually by 2030.

“This investment will ensure that communities across Melbourne and rural and regional Victoria have the critical workforces to meet community need.

“We look forward to working collaboratively with the Government to ensure successful implementation of the new arrangements.”