This week, Monash University's government leader passed a resolution that effectively banned international students from running for student government positions.
The University limited the roles to candidates who were eligible to work at least 22 hours a week when most international student visas allow a maximum of 20 hours work.
A spokesperson said university management was concerned the policy change was discriminatory towards international students and called an urgent meeting with student leaders, saying the university would "not tolerate marginalisation of any student group in any situation".
"[The Monash student union] has made the decision to cancel the current student election due to unforeseen circumstances," a university spokesperson said.
Australia is home to approximately a quarter of a million Chinese students.