Perth International College of English closes after 20 years, blaming government policy changes
A highly-regarded Perth English language school has been forced to close its doors, with its owner blaming Federal Labor Government policy changes for plunging his business into liquidation.
Perth International College of English director John Paxton sent out a letter to international students this week to notify them of the closure, after more than 20 years in business.
'It is with deepest regret that I have to inform you all that PICE was forced into liquidation today,' he wrote. 'It will come as little surprise to many in the industry as we follow the path of other colleges in Australia.
'It is a sad reflection that we have survived so many tough times over the last 23 years, including major recent catastrophes like COVID border closures, but we are unable to survive the political behaviour of our own government.'
The college, in Murray Street, is one of several education providers — particularly English language and vocational colleges — that have scaled back operations or gone out of business as a result of negative impacts from the Federal Government's migration reforms.
Mr Paxton said the visa settings and visa refusal regime the Australian Government initiated in December, 2023, had started the decline of colleges offering English Language Intensive Courses for Overseas Students (ELICOS).
But raising the visa fee in July last year by 125 per cent to make it the most expensive globally was the 'finishing touch', with applications halving from that date.
'The ELICOS sector has been called collateral damage from their political agenda, and that unfortunately has been PICE's fate,' he said.
'I made a calculated decision to keep the business afloat and ride out the storm with my personal money. And that has come to an end. I have none left.'
Mr Paxton, the WA State delegate and former board member of peak ELICOS body English Australia, said he had been unable to find a buyer or investor, despite his efforts to find a solution that would allow the college to remain open.
Students would be protected by the government's Tuition Protection Scheme, giving them the option to transfer to another college of their choice, or they could request a refund of unused fees.
'We will do everything possible to ensure all students — current and future — will be taken care of,' he said.
English Australia chief executive Ian Aird said the board was 'deeply saddened' by the news.
He said despite PICE's 'exemplary reputation for quality', the increase in student visa fees, record high visa refusal rates and processing delays meant the college was 'unable to attract enough enrolments to be financially sustainable'.
StudyPerth chief executive Derryn Belford said many English colleges were finding it harder to attract students because of the visa fee increases.
'My understanding is the Federal Government is aware that they've caused a problem with this in the English language space, but it's how fast can they fix it,' she said.
'Often, you'll see that it is the good institutions that fall over when big policy changes happen because they keep to the rules.'
Educators have previously raised concerns the changes would have a flow-on effect at universities, dramatically impacting the viability of the international education sector which contributes around $3.6 billion a year to WA's economy.
Premier Roger Cook last month wrote to Prime Minister Anthony Albanese to highlight his concerns about the plight of the international education sector.
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