Australia has announced a cap of 270,000 international student enrollments for 2025, a move aimed at managing record migration levels and addressing the surge in home rental prices.
This decision follows a series of measures implemented since last year to phase out COVID-era concessions for foreign students and workers, which had been introduced to address workforce shortages during strict border controls.
This was disclosed by Australia’s Education Minister Jason Clare, according to The Economy Times.
Clare noted that international student numbers are currently about 10% higher than pre-pandemic levels at Australian universities, with private vocational and training providers seeing a 50% increase.
Clare emphasized that the reforms are designed to make the international student sector more sustainable and equitable for the future.
International education remains a significant export industry for Australia, contributing AUD 36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year.
However, growing public concern over the influx of foreign students and workers has intensified pressure on the housing market. With an election approaching, immigration is expected to be a key issue.
Net immigration reached a record high of 548,800 for the year ending September 30, 2023, up 60% from the 518,000 recorded in the year ending June 2023.
This surge, driven primarily by students from India, China, and the Philippines, has expanded the labour supply and alleviated wage pressures but exacerbated the housing crisis.
In response to the migration surge, the Australian government has implemented measures to mitigate the impact, including more than doubling visa fees for foreign students and closing loopholes that previously allowed them to extend their stay indefinitely.
