Australia is set to introduce a cap on the number of foreign students allowed into the country starting next year, a move that could impact its multi-billion dollar education sector. The government announced on Tuesday that new international student admissions for universities, higher education, and vocational training will be limited to 270,000 in 2025.
Education Minister Jason Clare disclosed the plan at a news conference, noting that some universities might see a decrease in student numbers. The new cap, which will require legislation, is intended to bring international student numbers back to pre-pandemic levels.
In 2023, foreign students contributed more than AUD 42 billion (USD 28 billion) to Australian universities and vocational education centers. Despite this, the government granted over 577,000 international student visas in the fiscal year ending June 30, 2023.
The proposed cap includes 145,000 new students for universities, 30,000 for higher education providers, and 95,000 for vocational education and training. The initiative replaces a previous policy that prioritized students at low risk of visa non-compliance, which favored top-ranked universities but slowed visas for other institutions.
While Universities Australia chair David Lloyd acknowledged the government’s authority to manage migration, he expressed concern that this should not be done at the expense of the education sector. He emphasized that international students are crucial to Australia’s economy, being the second-largest industry after mining.
Prime Minister Anthony Albanese has also highlighted the importance of international students to Australia, but warned against universities becoming overly reliant on them due to the migration implications. Recent polls suggest that immigration is being blamed by many Australians for rising house prices, adding to the political pressure on the government.
The government is also cracking down on fraudulent “ghost colleges” that have been exploiting the system. More than 150 such institutions have recently been shut down, with the education minister describing them as a “back door” for people to work in Australia under the guise of studying.
