The Prime Minister Scott Morrison has ruled out an early return of students from overseas.
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Universities had been hoping for a way to regain the many millions of dollars in revenue they've lost during the epidemic.
"The challenges we have in getting Australians home means the ability to move and take international students back at this time through quarantine arrangements does not present itself," Mr Morrison said.
"It's Australians coming home first."
Universities reacted cautiously after Mr Morrison's announcement.
A spokesperson for the Australian National University said: "We have been in ongoing discussions with the ACT and federal governments about the return of international students to Canberra and our campus."
"We miss our international students and the incredible contribution they make on our campus and in our community. We look forward to welcoming all our domestic and international students back to the University when it is safe to do so."
Universities Australia chief executive Catriona Jackson said: "We have consistently said the gradual return of international students into Australia requires careful coordination between governments, universities, health and immigration authorities."
"We stand ready to welcome international students to back to our campuses when it is safe to do so."
University of Canberra Vice-Chancellor Paddy Nixon had previously said he hoped students would be able to return for the beginning of the first semester in early 2021.
His university and the ANU have been talking to the ACT Government about how to return international students to the capital.
"We want international students back. We think they add to the learning experience of our students and we think it's an important part of the cultural development of Canberra ... so we're absolutely keen to do it, but we're doing it cautiously," the UC head said.
A program to fly 350 international students to Canberra was called off in July as infections soared in Victoria.
In April, only 30 students arrived from abroad compared with 46,480 in April, 2019, according to the Mitchell Institute in Victoria University.
Universities Australia said its 39 member universities "contributed $24 billion to Australias international education export income", of which universities in the ACT contributed $646 million.
Steve Evans
Steve Evans is a reporter on The Canberra Times. He's been a BBC correspondent in New York, London, Berlin and Seoul and the sole reporter/photographer/paper deliverer on The Glen Innes Examiner in country New South Wales. "All the jobs have been fascinating - and so it continues."
Steve Evans is a reporter on The Canberra Times. He's been a BBC correspondent in New York, London, Berlin and Seoul and the sole reporter/photographer/paper deliverer on The Glen Innes Examiner in country New South Wales. "All the jobs have been fascinating - and so it continues."
