Sydney: Australia said it would limit the enrolment number of new international students to 270,000 for 2025, as govt looks to rein in record migration that has contributed to a spike in home rental prices. The decision follows a raft of actions since last year to end Covid-era concessions for foreign students and workers that helped businesses recruit staff locally while strict border controls kept overseas workers out.
“There’s about 10% more international students in our universities today than before the pandemic and 50% more in private vocational and training providers,” said education minister Jason Clare. New enrolments will be capped at 145,000 for universities, which is around 2023 levels, and 95,000 for practical and skills-based courses.
Clare said govt would inform universities on their enrolment caps. University of Melbourne said it had received its indicative cap, without elaborating, and was assessing financial and other implications. “The cap will have detrimental consequences for our university, the higher education sector, and the nation for years to come,” said vice-chancellor Duncan Maskell. University of Sydney also said it was studying the likely impact of the cap. “We’ll continue to work collaboratively with govts and the sector on managed growth of international higher education, one of Australia’s most valuable exports,” it said. Universities Australia, the peak body for universities, said the govt move would “apply a handbrake” to the sector.
International education, Australia’s fourth-biggest export, was worth A$36.4 billion ($24.7 billion) to the economy in 2022-2023 financial year.
Moody’s Ratings sees a modest impact from the proposed cap, adding it does not constitute a material deterioration in the operating environment for the sector.
Polls have showed voters are concerned about large influxes of foreign students and workers putting excess pressure on the housing market, making immigration one of the potential major battlegrounds in an election less than a year away. Net immigration hit a record high in the year to Sept 30, 2023, surging 60% to a record 548,800, mostly driven by students from India, China and Philippines. That was higher than the 518,000 people in the year ending June 2023.
In a bid to contain the surge in migration, the govt last month had more than doubled the visa fee for foreign students.
