Australia Set to Cap New International Student Enrollments to Address Migration Concerns
Australia is preparing to implement a cap on new international student enrollments as part of efforts to reduce overall migration to pre-pandemic levels. The federal government has announced that the number of new international students allowed in 2025 will be limited to 270,000.
Under the new policy, each higher education institution will face individualized restrictions, with vocational education and training providers experiencing the largest reductions. This decision has sparked outrage within the tertiary education sector, leading some universities to label the move as “economic vandalism.” However, officials from Canberra argue that this measure is essential for improving the quality and sustainability of the education sector.
Currently, approximately 717,500 international students are studying in Australia, according to government figures from early 2024. Education Minister Jason Clare acknowledged the significant impact the pandemic had on higher education, as foreign students were sent home and strict border controls were enforced. Nonetheless, he pointed out that university enrollments have increased by 10% compared to pre-COVID levels, with private vocational institutions seeing a staggering 50% growth.
In response to potential exploitation within the sector, Mr. Clare stated, “Students are back, but so are the shonks—individuals looking to profit quickly from this industry.” The government has previously raised concerns about certain providers engaging in “unethical” practices, such as accepting students lacking the necessary language skills or facing minimal educational standards.
These upcoming reforms aim to enhance fairness and sustainability in the international education framework. Mr. Clare emphasized that the changes would also help tackle record high migration levels, which have been straining housing and infrastructure.
In conjunction with the cap, the government is also enforcing stricter English language requirements for international students and increasing scrutiny for those applying for second study visas while penalizing substandard providers.
For the year 2025, public universities will see their enrollments reduced to 145,000—mirroring 2023 numbers—while private universities and non-university institutions will each have a cap of 30,000. Vocational education and training providers will be limited to 95,000 new international students. Additionally, incentives will be offered to schools to develop more housing for international students.
Despite the government’s intentions, higher education leaders argue that the sector is being unfairly scapegoated for broader issues related to housing and migration. They fear that implementing a cap could have devastating effects on the international education sector, which generated A$36.4 billion for the Australian economy in 2022-23, making it the country’s fourth largest export.
Economic modeling from earlier this year indicates that the proposed enrollment reductions could lead to a A$4.1 billion loss for the Australian economy and approximately 22,000 job cuts by 2025. Vicki Thomson, the chief executive of a major university representative body, denounced the proposed legislation as “draconian” and “interventionist,” calling it a form of economic sabotage.
While Mr. Clare acknowledged that some education service providers might face challenging budgetary decisions, he dismissed the idea that this cap would dismantle the international education sector. “To suggest that this is a dismantling of international education is completely misleading,” he asserted.
