AUSTRALIA announced on Tuesday that it will limit the enrolment of new international students to 270,000 for 2025 as part of efforts to curb record migration, which has contributed to rising home rental prices. This decision builds on measures taken since last year to phase out Covid-era concessions for foreign students and workers that allowed businesses to hire locally while borders were closed.
“There’s 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,” said Australian education minister Jason Clare at a press conference.
New international student enrolments will be capped at 145,000 for universities, maintaining levels similar to 2023, and 95,000 for vocational and skills-based courses. Clare mentioned that the government would notify universities of their specific enrolment caps.
The University of Melbourne stated that it had received its indicative cap and was assessing the financial and other implications. “The cap on international students will have detrimental consequences for our University, the higher education sector generally, and the nation for years to come,” said vice-chancellor professor Duncan Maskell.
The University of Sydney also said it was evaluating the potential impact of the cap. “We’ll continue to work collaboratively with governments and the sector on managed growth of international higher education, one of Australia’s most valuable exports,” it said in a statement.
Universities Australia, the peak body for universities, commented that the government’s move would "apply a handbrake" to the sector.
International education, which is Australia’s fourth-largest export after iron ore, gas, and coal, contributed almost £18.74 billion to the economy in the 2022-2023 financial year.
Moody’s Ratings noted that the proposed cap would have a modest impact on Australian universities and would not lead to a significant decline in the sector’s operating environment. “The credit impact on larger universities will be neutral, given any cap on commencements will constrain growth in international enrolments over time,” said John Manning, vice president and senior credit officer at Moody’s Ratings.
Polls have indicated that voters are concerned about the large influx of foreign students and workers putting pressure on the housing market. Immigration is expected to be a key issue in the upcoming election, less than a year away.
Net immigration reached a record high in the year ending September 30, 2023, rising by 60 per cent to 548,800, mainly due to students from India, China, and the Philippines. This was higher than the 518,000 recorded in the year ending June 2023.
Last month, in response to the surge in migration, the government more than doubled the visa fee for foreign students and pledged to close loopholes in rules that allowed them to extend their stay continuously.
(With inputs from Reuters)
