Australia Slams Door on International Students: 270,000 Cap for 2025, limiting the intake to 270,000 students

Australia has announced a significant cap on international student enrollments for 2025, limiting the intake to 270,000 students. This move is part of broader government efforts to manage record-high migration levels, which have been linked to rising rental prices across the country.

Cap on International Students

Australia’s decision to impose a cap on international students follows a series of measures to reverse the temporary concessions during the COVID-19 pandemic. These concessions were initially introduced to support local businesses during strict border closures, allowing a surge in international student numbers.

Education Minister Jason Clare highlighted that international student numbers have risen significantly since the pandemic.

“There are about 10 per cent more international students in our universities today than before the pandemic, and about 50 per cent more in our private vocational and training providers,” Clare stated during a press conference.

Impact on University Enrollment

Under the new cap, Australian universities will be permitted to enrol 145,000 new international students, maintaining 2023 enrollment levels. Practical and skills-based courses will face a cap of 95,000 new enrollments. The government will inform each university of their specific enrollment limits.

The Economic Impact of International Education

International education is a crucial contributor to Australia’s economy, ranking as the fourth-largest export after iron ore, gas, and coal. The sector brought in $24.7 billion during the 2022-2023 financial year.

However, the surge in international students and workers has become a contentious issue, with growing public concern over its impact on the housing market. The issue is likely to play a significant role in the upcoming national election, scheduled for less than a year away.

Key Markets Affected

Australia’s record net immigration reached 548,800 by the end of September 2023, marking a 60 per cent increase driven largely by students from India, China, and the Philippines. This figure exceeded the 518,000 recorded in the year ending June 2023.

In response to these migration levels, the Australian government has more than doubled visa fees for foreign students and committed to closing loopholes that allowed students to extend their stays indefinitely.

Impact on Student Visas

The new cap on international student enrollments will likely affect student visa applications, particularly from countries like India, China, and the Philippines.

Students from these countries, who have traditionally formed the bulk of Australia’s international student population, may face increased competition for limited spots in Australian universities.

Moreover, with higher visa fees and stricter regulations, prospective students might reconsider their plans to study in Australia. The changes could also lead to a shift in global student mobility patterns, as students seek more accessible destinations for higher education.

Conclusion

Australia’s cap on international student enrollments for 2025 is a response to rising migration and housing pressures, potentially significantly impacting the higher education sector and Australia’s attractiveness as a study destination.