On Tuesday, Australia announced a cap on new international student enrollments at 270,000 for 2025, aiming to manage the record migration levels that have led to a sharp increase in home rental prices. This decision comes after a series of measures since last year to end Covid-era concessions for foreign students and workers, which supported local recruitment amid stringent border controls.
Education Minister Jason Clare highlighted at a press conference that there are currently about 10% more international students in Australian universities compared to pre-pandemic levels, and about 50% more in private vocational and training institutions. New enrollments for universities will be limited to 145,000, maintaining 2023 levels, and 95,000 for practical and skills-based courses. Clare mentioned that specific enrollment caps will be communicated to individual universities.
The University of Melbourne, which has received its indicative cap without further details, is assessing the financial and other implications, as stated by Vice-Chancellor Professor Duncan Maskell. Similarly, the University of Sydney is evaluating the potential impacts of the cap, emphasizing ongoing collaboration with governments and the sector for managed growth in international higher education.
Universities Australia, representing the sector, described the government's move as a necessary slowdown. International education, ranking fourth among Australia's exports, contributed A$36.4 billion to the economy in the 2022-2023 financial year. Moody's Ratings anticipates a minor impact from the enrollment cap, noting no significant deterioration in the operating environment for universities.
Concerns over the housing market due to large inflows of foreign students and workers have been prominent in voter polls, with immigration emerging as a key election issue. Net migration reached a record 548,800 in the year ending September 30, 2023, driven mainly by students from India, China, and the Philippines. In response to this surge, the government recently increased visa fees for foreign students and pledged to address loopholes allowing extended stays.
