Australian opposition Labor Party has warned that universities are facing bankruptcy because of the COVID-19 pandemic.
Tanya Plibersek, Labor Party's education spokesperson on Friday called for the government to guarantee university funding and offer institutions low-interest loans to help them survive the crisis.
On average Australian universities rely on international students, particularly those from China, for more than a third of their revenue.
With international enrollment plummeting because of widespread travel bans, leading universities have begun cost-cutting.
Plibersek told the Guardian Australia that there are "now serious concerns that without federal government action some leading institutions could collapse."
Dan Tehan, the Australian education minister, is set to announce a tertiary education support package later in April. Plibersek said it must include "low or no-cost loans to provide stability in coming months."
"Australian universities are under immense pressure," she said.
"For years, universities have used income from international education to help fund their world-leading research.
"The Covid-19 pandemic, and global travel restrictions, have led to a crisis in this funding model, with income from international students plummeting over recent months."
La Trobe University, which has more than 30,000 students, on Friday revealed that it expects its revenues to fall by 150 million Australian dollars (90.9 million U.S. dollars) because of the virus.
However, the tertiary education sector has played down the threat posed by COVID-19.
Catriona Jackson, chief executive of peak group Universities Australia, said that institutions do not need a government "bailout".
"Rather we are seeking government support to help us weather the period ahead, and come out the other side able to play our part in economic and community recovery," she said.
