Australia plans to cap the number of foreign students starting next year, the government announced on Tuesday, marking a significant shift in a multi-billion-dollar industry amidst growing political pressure on immigration.
Education Minister Jason Clare revealed at a news conference that the number of new international students will be limited to 270,000 in 2025. This cap will apply across universities, higher education institutions, and vocational training providers.
Clare explained that this policy change will result in some universities having more students this year than next, while others will see a decrease. The plan, which will require legislative approval, aims to balance student distribution and address recent visa processing issues.
In 2023, international students contributed over AU$42 billion (US$28 billion) to Australian universities and vocational education centers. The government issued more than 577,000 international student visas in the fiscal year ending June 30, 2023.
Under the new cap, 145,000 new foreign students will be admitted to universities, 30,000 to other higher education institutions, and 95,000 to vocational education and training programs in 2025. This approach is intended to replace a previous policy that prioritized low-risk students, which had benefited top-ranked universities but slowed visa processing for others.
David Lloyd, Chair of Universities Australia, criticized the policy, stating, “We acknowledge the government’s right to manage migration numbers, but this should not come at the expense of any sector, particularly one as economically significant as education.” He emphasized that international students were Australia’s second-largest industry after mining, contributing significantly to the economy.
Prime Minister Anthony Albanese has acknowledged the critical role of the international education sector but also noted that universities should not become overly dependent on foreign students due to broader migration concerns.
An Essential poll for The Guardian revealed that around 69 percent of Australians associate high house prices with immigration, with opinions on immigration divided evenly between “generally positive” and “generally negative.”
In response to the cap, the government also plans to crack down on fraudulent institutions. Clare noted that more than 150 “ghost colleges” had been shut down recently, describing them as exploitative avenues for individuals seeking to work in Australia rather than pursue genuine education.
