Australia is set to introduce a cap on new international student enrolments in 2025, limiting the number to 270,000 as part of broader efforts to reduce overall migration to pre-pandemic levels.
The decision, announced by Education Minister Jason Clare, is intended to address pressures on housing and infrastructure caused by record migration levels, while also improving the quality of the higher education sector.
Each higher education institution will be assigned an individual cap, with vocational education and training providers bearing the largest cuts. This move has been met with fierce opposition from the tertiary education sector, which has labelled it “economic vandalism” due to the anticipated negative impact on the industry.
Australia currently hosts around 717,500 international students, according to government figures from early 2024. The sector was hard-hit during the pandemic, when strict border controls and the return of foreign students severely impacted enrolments. However, numbers have since rebounded, with international student numbers at universities now 10% higher than before the pandemic, and those at private vocational providers up by 50%.
Minister Clare defended the cap, stating that it would help eliminate “unethical” practices by some providers, including accepting students without sufficient language skills and enrolling individuals who intend to work rather than study. The government has already introduced tougher English-language requirements and increased scrutiny on second study visa applications, along with sanctions against “dodgy” providers.
The cap is part of a broader set of reforms aimed at creating a more sustainable and fair education system in Australia. It is also intended to alleviate pressure on housing and infrastructure, which have been exacerbated by high migration levels.
The new policy will allow public universities to enrol 145,000 new international students in 2025, maintaining their 2023 levels. Private universities and non-university higher education providers will have a combined cap of 30,000, while vocational education and training institutions will be limited to 95,000 new enrolments.
Despite the government’s assurances, the higher education sector remains deeply concerned. Critics argue that the cap will have severe economic consequences, with a Sydney University-commissioned report warning that the cuts could cost the Australian economy $4.1 billion and result in 22,000 job losses in 2025.
Vicki Thomson, chief executive of a body representing some of Australia’s most prestigious universities, described the proposed laws as “draconian” and “interventionist,” stating they amounted to “economic vandalism.”
Addressing concerns about the economic impact, Clare stated, “To create the impression that this is somehow tearing down international education is absolutely and fundamentally wrong,” as he acknowledged the challenges faced by service providers but rejected claims that the cap would devastate the sector.
He then insisted that the reforms would ensure the long-term sustainability of Australia’s international education market.
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