Universities will cope with an expected influx of international students with the guidance of a new ministerial council.
The International Education Advisory Council, led by businessman Michael Chaney, believes Australia's international education sector is in good shape at the moment.
But it warns in a report released on Wednesday that there is no room for complacency.
However, the council believes that with a concerted and co-ordinated effort Australia will be able to play a leading role in meeting growing global demand.
"National leadership at a time of global change is imperative," Mr Chaney writes in the report.
The council recommends setting up a ministerial council, led by Tertiary Education Minister Chris Bowen, to provide that leadership in responding to new challenges and considering new ways to tackle long-term issues.
It predicts a 30 per cent rise in the number of international students coming to Australia during the next seven years.
The expected 520,000 international students here in 2020 would be worth $19.1 billion to the economy.
Mr Chaney said there would need to be a particular focus on making sure Australia had excellent infrastructure to handle the influx of students.
Some of the council's 35 recommendations address this in detail.
They include a comprehensive review of off-campus accommodation and ensuring international students have access to transport concessions, public hospitals and work experience.
Mr Bowen says the government is likely to accept most of the council's findings.
"It's a good report and I would anticipate us accepting most of the recommendations in it," he told reporters in Canberra.
Ultimately, the Chaney report would inform the government's development of a five-year strategy to support the quality and sustainability of international education.
Mr Bowen said that with international education now an integral part of university life, the government was committed to supporting its sustainability.
Universities Australia said the council's report offered well-considered strategy to strengthen international education.
The peak body supported the establishment of a ministerial council and said it looked forward to working with that group.
"It is crucial we get the policy settings right," chief executive Belinda Robinson said.
"This excellent report outlines a real and achievable five year strategy to strengthen international education and we strongly commend it to the government."