Universities are looking to put the brakes on high-value infrastructure projects as they grapple with the financial impact of the coronavirus travel ban, but the cost-cutting plans are sparking concerns for hundreds of millions of dollars of economic activity.

Delaying capital works is among a raft of contingency options the university sector is weighing up while 100,000 Chinese students remain stranded offshore. The government is also facing a call from a Queensland vice-chancellor to provide relief by boosting education infrastructure investment after a dedicated multi-billion dollar fund was abolished last year.

Universities are looking to postpone capital works programs as they weather the coronavirus storm. Credit:James Brickwood

Vicki Thomson, chief executive of the Group of Eight universities, which account for 65 per cent of Chinese students enrolled in Australia, said the potential for deferring construction projects was “significant” and widespread.

“I think the important thing to recognise with that is that, yes, we can slow down or defer capital works, but that has a knock-on effect into the broader economy,” she said.