Australia should be trying to capitalise on the election of Donald Trump and Britain's divorce from the European Union in the hot pursuit of international students.
Universities Australia, in a submission to a government review of foreign and trade policy, argues the geopolitical shifts present opportunities for nation's higher education institutions.
Diversification was needed because traditional market countries such as China and Malaysia have been investing heavily in their respective education systems.
"China is building a university every week," chief executive Belinda Robinson said.
International students contribute $21.8 billion to Australia's economy each year, making education the nation's third-largest export earner.
The students and their families also contribute $18.2 billion to the nation's income from tourism.
Ms Robinson urged Austrade to boost its marketing efforts for Australia's higher education sector.
The submission noted that Germany and Britain both had dedicated government-funded international education bodies to promote their institutions abroad.
Ms Robinson noted there were still $3.5 billion in higher education cuts reflected in the budget.
"If we want to continue to be in the top three destinations for international students, then our policy, regulatory and funding settings must support that aim," Ms Robinson said.
The submission also called on the government to increase opportunities for indigenous students to study at universities overseas under the New Colombo Plan.
