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The plan, published last month, is overseen by Richard Colbeck, Australia's Minister for Tourism and International Education.
Lord Bilimoria said an "overwhelming majority" of British people appreciated the importance of international students.
"There is great benefit to building bridges between Britain and international students from around the world," he said.
"Their experience in the UK will support Britain's soft power and will encourage others to share in the UK's international education."
According to the Home Office, visa applications from international students to study at British universities are up 17% on 2010, with applications to "our elite Russell Group universities" up 39%.
"We welcome people who want to come to the UK to study at our world-leading institutions, but all types of immigration have an impact on our communities, on housing and on our public services," a spokesman said.
Since 2010, the government had "cracked down on immigration abuse from poor qualify institutions that were damaging the UK's reputation as a provider of world-class education", he added.