In a move aimed at reducing overall migration, Australia will impose a cap on the number of new international students allowed into the country, seeking to revert to pre-pandemic levels.
Education Minister Jason Clare announced on Tuesday that enrolments will be capped at 270,000 for 2025, marking a pivotal change in the nation’s approach to international education.
The proposed enrolment caps are also intended to ease pressure on Australia’s housing and infrastructure, which have been strained by record migration levels. Specifically, enrolments at public universities will be limited to 145,000, consistent with 2023 levels, while private institutions and non-university providers will be allowed 30,000. Vocational education and training institutions will have a cap of 95,000 new international students.
Australia currently hosts one of the largest international student populations globally, with approximately 717,500 international students recorded in early 2024 government figures. Under the new regulations, individual caps will be set for each higher education institution, with vocational education and training providers facing the most substantial cuts. The decision has sparked outrage across the tertiary education sector, with numerous universities condemning the measures as “economic vandalism.” Critics argue that the cap will severely damage an industry already hit hard by the COVID-19 pandemic. Clare, however, maintains that the reforms are essential to ensuring the sector’s quality and sustainability.
During the pandemic, Australia’s strict border controls and the repatriation of foreign students significantly disrupted the higher education landscape. Despite these challenges, Clare noted that university enrolments have rebounded to 10% above pre-pandemic levels, with private vocational providers seeing a remarkable 50% increase. “Students are back, but so are the shonks—people looking to exploit this industry for a quick profit,” Clare remarked, referring to unscrupulous actors in the market.
The government has accused several education providers of engaging in “unethical” practices, such as enrolling students who lack adequate language proficiency or are more interested in employment than education. To address these issues, the government has already implemented stricter English-language requirements and increased scrutiny for those seeking a second study visa.
To further support international students, Clare mentioned that incentives will be introduced for universities to expand housing options.
David has helped hundreds of UNSW students turn their startup dreams into reality through the UNSW Founders program, many of which are of migrant background. He thinks the news is incredibly disappointing: “Australia’s future economic prosperity relies on skilled migration. Over in the US, 4 in 10 unicorn founders are first-generation migrants. Here in Australia, many of today’s most successful startups such as Harrison.AI and Airwallex wouldn’t be in existence without international founders calling our nation home.
“If you look back through history, all successful nations have at their heart vibrant cities populated with the brightest and most ambitious minds from all over the world. Cities are great because of the people that move there. Yes, the cost of housing is a huge problem but the best solution must be focused on something that gives us more skilled migration, not less.”
The federal budget in May allocated $1.8 million to expedite skills assessments for about 1,900 potential migrants with qualifications in construction and housing. Skills Minister Brendan O’Connor acknowledged the deep shortfalls across the labor market and emphasized the need for more support for apprentices.
A decline in international student numbers can significantly harm businesses by reducing tuition revenue for universities, decreasing local spending, and leading to job losses in sectors like education, hospitality, and retail. It also diminishes cultural diversity and global connections, weakens research and innovation by cutting funding and skilled graduates, and potentially damages a country’s or university’s reputation as a welcoming study destination. These effects collectively strain both the economy and the broader social fabric.
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