Sydney: Australia will impose a cap on the number of international students, limiting them to 270,000 by 2025 as part of a broader effort to manage migration levels. The new policy, announced by Education Minister Jason Clare, aims to address the rising migration numbers that have put pressure on the country’s housing market and raised concerns among voters.
Under the new restrictions, the government will allow 145,000 new international students to enroll in universities and 95,000 in vocational training programs in 2025. This represents a 15% increase in university enrollments but a 20% reduction in vocational college admissions compared to previous years. In fiscal 2023, Australia issued nearly 600,000 student visas, marking a significant increase from earlier years.
“This is an important part of our economy, no doubt about it. That hasn’t changed,” Clare stated during the announcement. He emphasized that the cap is intended to maintain the sector’s reputation while ensuring its sustainability. However, the decision has been met with concerns from the education sector.
David Lloyd, Chair of Universities Australia, warned that the student caps could act as a “handbrake” on the tertiary education sector. He cautioned that limiting international students could harm Australia’s research and development capabilities and urged that migration controls should not come at the expense of the education sector.
The Independent Tertiary Education Council Australia echoed these concerns, stating that the announcement left universities with more questions than answers regarding the implementation of the changes.
Australia joins other countries, including Canada, the Netherlands, and the UK, in tightening migration policies that affect international students. The Australian government has been consulting on these measures for months, driven by voter concerns over a housing shortage and rising rents, which have created political challenges for the ruling center-left Labor government.
A recent poll by Essential showed that public support for migration in Australia has dropped to its lowest level in five years, with 42% of respondents viewing it as having a negative impact on the country.
Despite the concerns, the Property Council of Australia’s Student Accommodation Council described the cap as “sustainable” and expressed optimism that the announcement would encourage continued investment in student housing.
International students contributed $48 billion AUD ($32.5 billion USD) to the Australian economy in 2023, underscoring their importance as the country’s top services export. The new policy aims to balance the economic benefits of international education with the need to manage migration effectively.
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