Australia to Limit Foreign Student Intake to 270,000 Starting in 2025

The Australian government has announced plans to cap the number of foreign students entering the country at 270,000 from 2025, a move aimed at controlling immigration levels while impacting a multi-billion dollar industry.

Education Minister Jason Clare outlined the plan in a press conference on Tuesday, stating that the cap will apply to new international students enrolling in universities, higher education, and vocational training programmes.

“It will mean that some universities will have more students this year than next year. Others will have less,” Clare said, highlighting the variability in impact across different institutions.

This new policy, which will require legislative approval, marks a significant shift from the current practice of prioritising students deemed to be at low risk of visa non-compliance, a system that has benefited top-ranked universities but slowed visa processing for other institutions.

A Booming Industry Faces Constraints

Official data indicates that international students contributed more than AUD 42 billion (USD 28 billion) to Australian universities and vocational education centres in 2023. In the fiscal year ending June 30, 2023, Australia granted over 577,000 international student visas, a number far exceeding the proposed cap.

The planned 270,000 cap will be divided as follows: 145,000 new foreign students for universities, 30,000 for other higher education providers, and 95,000 for vocational education and training programmes.

Clare noted that this change aims to bring the number of international students starting courses back to pre-Covid-19 levels.

“We acknowledge the government’s right to control migration numbers, but this should not be done at the expense of any one sector, particularly one as economically important as education,” said David Lloyd, chair of Universities Australia.

Economic and Political Ramifications

International education is Australia’s second-largest export industry after mining, and it played a substantial role in economic growth last year.

“Every dollar from overseas students is reinvested back into Australia’s universities. Having fewer students here will only widen the funding gap at a time universities need greater support,” Lloyd warned.

Prime Minister Anthony Albanese recently emphasised the importance of the international education sector, describing it as “absolutely vital” for Australia. However, he also cautioned against universities becoming overly dependent on overseas students, partly due to the broader implications for immigration.

Public sentiment on immigration is divided. An Essential poll for The Guardian showed that approximately 69 per cent of Australians attribute high house prices to immigration. The same survey indicated that opinions on immigration’s overall impact were split, with 42 per cent viewing it as “generally positive” and another 42 per cent seeing it as “generally negative.”

In addition to the cap, the Australian government is taking steps to protect the integrity of its international education industry. The education minister revealed plans to safeguard the sector from fraudulent practices, including shutting down more than 150 “ghost colleges”—institutions that served as a means for individuals to enter Australia primarily for work rather than education.

“These ghost colleges are a back door for people to work in Australia rather than pursue genuine education,” Clare stated, underscoring the government’s commitment to maintaining the quality and reputation of Australia’s education system.

As Australia prepares to implement these changes, the balance between managing migration and sustaining its lucrative education sector will be closely watched by both domestic and international stakeholders.

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