Coalition designs on a dramatic reduction of Australia's migrant influx has upset the higher education sector and been labelled divisive by the prime minister.
The opposition is promising one of the biggest migration cuts in Australian history and Nationals leader Matt Canavan has described the nation's current intake of international students as a "scam".
But the universities sector, which relies heavily on foreign students who can be charged much higher fees, said any cuts to immigration would hurt the economy and cost jobs.
"Significant cuts to international student numbers would have real consequences for the economy and our universities at a time both are doing it tough," Universities Australia chief executive Luke Sheehy said in a statement.
"Australia cannot afford another race to the bottom driven by stop-start policy settings, political signalling or measures that damage our economy, our universities and our global reputation."
Under the coalition's plan, Australia's migrant intake would be capped at the number of homes completed in the previous year.
Following from his budget reply speech on Thursday, Opposition Leader Angus Taylor has refused to put an exact figure on his preferred net overseas migration rate until closer to the election.
However based on the most recent data, the plan would cut immigration by about 40 per cent.
Prime Minister Anthony Albanese has described the coalition's migration policies as "divisive" and accused Mr Taylor of speaking about Australians and migrants as "completely separate things".
"As if there is no one in this country who is a migrant, who isn't loyal to Australia," he told reporters on Saturday.
"What I see is hardworking Australians who have come here making a difference to their nation."
Senator Canavan has declared the current student visa system ripe for reform, arguing far too many foreigners were studying at Australian universities.
"It's a total scam at the moment. I mean, it's just ridiculous," he told ABC Radio National.
"I'm not saying we shouldn't have foreign students, we've always done that, but the principal role of an Australian university should be to teach Australian students."
Senator Canavan claimed many foreign students were not coming to Australia to learn - they were using their studies as a pathway to citizenship.
The National Tertiary Education Union, which represents academics around the country, warned any cut to migration would hurt universities and their staff.
"Fewer international students won't fix the housing crisis," national president Alison Barnes said.
"More often than not, they're living in accommodation like extra bedrooms, on campuses or other rooms that locals don't want to or can't live in."
Dr Barnes said university executives would use any cut to student numbers as an excuse to axe jobs, and called for more detailed policy from the opposition on higher education.
"Sadly, the opposition leader is more interested in aping Pauline Hanson than setting out a vision for higher education," she said.
