Australia has announced plans to cap the number of international students at 270,000 by 2025 in response to the housing market pressures attributed to a surge in migration.
Education Minister Jason Clare revealed the decision during a press conference, explaining that the cap is part of broader reforms aimed at creating a more sustainable and fair international student sector. “There’s about 10% more international students in our universities today than before the pandemic and about 50% more in our private vocational and training providers,” Clare said.
The move follows a series of measures implemented since last year to reverse COVID-19-era benefits for foreign students and workers, which had previously facilitated local hiring due to stringent border controls.
International education, a significant export industry for Australia, was valued at A$36.4 billion in the 2022-2023 financial year. However, the influx of foreign students and workers has intensified housing market pressures, becoming a key issue in upcoming elections.
Net immigration reached a record high of 548,800 for the year ending September 30, 2023, a 60% increase from the previous year. This record migration, driven largely by students from India, China, and the Philippines, has expanded the labor supply but also exacerbated housing shortages.
In an effort to manage migration, the government has recently doubled the visa fee for foreign students and pledged to address loopholes that allowed extended stays.
