A long-running English college for international students has closed its doors and called in a liquidator, citing federal government visa settings as a factor hampering its enrolment numbers.
Murray Street-located Perth International College of English ceased operating yesterday and brought in Sheridans principal Jennifer Low as a liquidator after its director searched for a buyer or investor to keep the 23-year-old business afloat.
Director John Paxton told stakeholders it was “with deepest regret” the private English college for international students was closing despite his efforts to find a solution.
He said federal government visa settings, increased fees and approval numbers had weighed heavily on enrolment numbers, which had halved from this time last year.
He said the 125 per cent increase in visa application fees brought in last year was the finishing touch for colleges like his.
“It reflected immediately on our applications, declining by over 50 per cent from that date,” he told stakeholders.
“A further imminent hike in visa fee to $2,000 will be a future issue for the English Language Intensive Courses for Overseas Students (ELICOS) sector.”
The increased visa fees came into effect in mid-2024 to fund reforms in the sector and bolster integrity by weeding out ghost providers, according to the federal government.
The visa fees were hiked from $710 to $1,600 – making Australia among the costliest countries for prospective international students to apply to.
The government is proposing to further increase fees to $2,000 - which can be non-refundable - raising competition concerns for local providers.
Federal government statistics point to a declining trend in both visa applications lodged and also visas being granted.
Liquidator Jennifer Low said PICE had previously operated with about 350 students, but was down to about 80 students at last count.
“There was a dramatic decline in the number of students who wanted to come and study in Australia, needed to do English language course as part of that, and a dramatic decline in those actually getting their visas approved,” she said.
The business – established in 2002 - employed six full-time stuff and a handful of casual teachers.
Ms Low said the first critical step was transitioning the students to new English language providers to enable them to complete their courses.
“It seems to be very sad and heartbreaking for the director and staff who have built a community with the students and the teachers,” Ms Low said.
The closure activated the government’s Tuition Protection Scheme, which is effectively an insurance that ensures visa students can continue studying at different colleges. Mr Paxton said they would be supporting their students through the process.
Industry association English Australia’s chief executive Ian Aird said they were deeply saddened by the news.
“Despite PICE’s exemplary reputation for quality, the increase in the student visa fee to $1,600, the record high student visa application refusal rates over the last 18 months, and the visa application processing delays have meant that PICE were unable to attract enough enrolments to be financially sustainable,” he said in a statement.
“PICE was a member of English Australia for more than 20 years and John Paxton was a Board Member and Western Australia State Delegate for more than 12 of those years.
“English Australia’s Board and Secretariat are deeply saddened by this news. John and the PICE team have been integral to our community and our efforts for two decades.”
