Mr Brownlee, who will be in Sydney on his first overseas engagement as Foreign Minister, will raise the issue with Ms Bishop. (Photo: National Party)

Julie Hare – The Australian

The decision, announced as part of the higher education budget measures revealed on Monday, would see Australia turn its back on a long-standing reciprocal deal between the two nations to allow students the right to study in each other’s universities under the same fees and conditions as locals.

Mr Brownlee, who will be in Sydney on his first overseas engagement as Foreign Minister, will raise the issue with Ms Bishop.

“I’m keen to have a discussion about the bigger picture and how we can communicate sooner on these issues going forward,” he said.

In 2015, 16,912 permanent residents were studying for an undergraduate degree and receiving a government subsidy, including 6757 New Zealanders.

Mark Warburton, an independent policy expert, said the change could raise about $150 million in revenue for Australia.

New Zealanders and permanent residents might also be charged deregulated fees, he said.

“These are three reforms in Monday night’s package that require the reintroduction of undergraduate fee-paying at public universities. This was prohibited by the Labor government from 2009,” Mr Warburton said.

“They will be subjected to deregulated fees, as are most postgraduate (and international) students.”

On Monday, Education Minister Simon Birmingham announced the government would no longer subsidise New Zealanders and permanent residents who studied here.

He said they would still be able to access places but would be required to pay full tuition fees, repayable via the Higher Education Loans Program.

They would also be required to pay a 25 per cent loan fee.

Ms Bishop said yesterday she was aware of the New Zealand government’s concerns but the higher education reforms were designed to keep the system fair and affordable.

[Read The Australian article – may be paywalled].