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Australian university officials are urging caution regarding a proposal by the New South Wales government to offer incentives to encourage international students to study in regional areas of the state outside Sydney so as to relieve population pressures in the capital city, The Sydney Morning Herald reported. An advisory panel recently found that 98.8 percent of students in New South Wales attend higher education institutions in Sydney, while just 1.2 percent study elsewhere in the state.

The New South Wales premier, Gladys Berejiklian, has not elaborated on what form incentives could take. Universities Australia’s chief executive, Catriona Jackson, said New South Wales universities would need to see a "very careful assessment of any proposals and their likely impact."

“International education is a $32 billion industry for Australia and generates $11.3 billion for NSW -- the lion’s share of any state or territory,” Jackson said.

“The last thing governments or universities want is to harm our ability to attract international students.”