Australia announced on Tuesday it will cap international student enrolments at 270,000 for 2025. The move aims to manage record migration, which has significantly increased home rental prices. This decision is part of broader measures introduced since last year to end COVID-era concessions for foreign students and workers. These concessions had previously allowed businesses to hire locally amid strict border controls.
Education Minister Jason Clare revealed that universities now host 10% more international students than before the pandemic, with private vocational and training providers seeing a 50% increase. Clare emphasised that the reforms aim to create a fairer and more sustainable international student sector.
International education remains a significant export industry for Australia, contributing A$36.4 billion to the economy in the 2022-2023 financial year. However, public opinion polls indicate concerns over the large number of foreign students and workers, which voters believe strain the housing market. This issue could become a major point of contention in the upcoming election.
Media Release: Improving the sustainability of international education.https://t.co/2KXvNCudHg
— Jason Clare MP (@JasonClareMP) August 27, 2024
Net immigration reached a record high of 548,800 in the year to 30 September 2023, marking a 60% increase. This figure surpasses the 518,000 recorded in the year ending June 2023. In 2022, Australia increased its annual migration numbers to address staff shortages following the COVID-19 pandemic, which had enforced strict border controls for nearly two years.
The surge in migration, primarily from India, China, and the Philippines, has expanded the labour supply and helped to control wage pressures. However, it has also worsened the already tight housing market. In response, the government recently more than doubled the visa fee for foreign students and vowed to close loopholes that allowed continuous extensions of their stay.
What Other Media Are Saying
- ABC News reports that the Australian government plans to cap international student commencements at 270,000 next year, setting individual limits for institutions based on recent enrollment trends and student concentration, excluding certain categories.(read more)
- U.S. News reports that Australia is limiting foreign student enrolments in a migration crackdown to control unprecedented migration levels and rising rental prices.(read more)
Frequently Asked Questions
Here are some common questions asked about this news
Why is Australia limiting international student enrolment?
To rein in record migration and manage home rental price spikes.
How many international students will Australia allow in 2025?
Australia will limit enrolment to 270,000 students.
Why did Australia end COVID-era concessions for foreign students?
To help businesses recruit locally and control migration.
How has the surge in international students affected housing?
It exacerbated an already tight housing market.
What actions has the Australian government taken to control migration?
They doubled visa fees for foreign students and closed extension loopholes.