Australia to cap enrolment of international students at 270,000 in 2025

The Anthony Albanese government's recent action comes in response to a surge in migration that has put pressure on the housing market in Australia

Australia will put a limit on the number of international student enrolments to 270,000 in the year 2025 to make the system “fairer”, country’s Education Minister Jason Clare said on Tuesday. 

In an official press release, the education minister said that the move would ensure that the sector is on a ‘more sustainable footing going forward’.

“There’s about 10 per cent more international students in our universities today than before the pandemic, and about 50 per cent more in our private vocational and training providers,” Clare said during a press conference.

Why is Australia capping foreign student enrolments?

The Anthony Albanese government’s recent decision comes in response to a surge in migration that has put pressure on the housing market in Australia. This issue has become a concern for Australian voters, who are considering their choices ahead of the upcoming General Elections, according to Reuters polls.

According to the new rules, universities will now be able to enroll only 145,000 new international students while 95,000 foreign students will be able to take up the practical and skills-based courses.

What does this mean for the Australian economy?

On the decision, the universities have expressed their disagreement, arguing it would “apply a handbrake” to the sector, leading to jobs and revenue losses.

International education added $24.7 billion to the Australian economy in the financial year 2022-2023, the data showed. This makes it the fourth largest export after iron ore, gas and coal.

The year to September 2023 data showed that net immigration in Australia hit a record high at 548,800, mostly driven by students from India. Chinese and Philippines students are also major contributors in this segment.

With the move, the Albanese government aims to reduce the number of international students next year to the pre-pandemic levels. Clare also announced the scrapping of ministerial direction 107, which prioritised student visa applications.

Last month, the government announced plans to more than double the visa fee for international students as a measure to address the migration situation.

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