Australia announced on Tuesday that it would limit international student enrollments to 270,000 in 2025. This decision is part of the government’s effort to manage record migration levels that have significantly driven up home rental prices.
In recent years, Australia implemented various measures to phase out COVID-era concessions for foreign students and workers, introduced initially to fill workforce gaps amid strict border controls. Education Minister Jason Clare noted the current enrollment rates in Australian universities and vocational training providers have surged beyond pre-pandemic levels, citing a 10% increase in universities and a staggering 50% increase in private vocational institutions.
The announced reforms aim to make the international student sector more sustainable and equitable. Clare specified that public universities will be capped at about 145,000 new enrollments, while professional institutions will be limited to around 95,000 new students. This effectively aligns university enrollments with the numbers documented in 2023, which stand at approximately 145,000. The visa fee hike introduced in July has also been doubled to curb immigration.
The Impact on Australia’s Economy and Housing Market
International education is one of Australia’s largest export industries, contributing AUD 36.4 billion ($24.7 billion) to the economy during the 2022-2023 financial year. However, public opinion has increasingly voiced concern over the influx of foreign students exacerbating pressures on the already tight housing market. With an election looming less than a year away, immigration is set to be a critical issue.
Net immigration reached a record high by September 30, 2023, climbing by 60% to a total of 548,800 people compared to the previous figures ending in June of the same year. Much of this growth is attributed to students from India, China, and the Philippines, who have contributed positively to expanding the labour supply and mitigating wage pressures but have strained housing availability.
Changes in Visa Rules: A Global Trend
In response to soaring migration rates, the Australian government has also tightened visa regulations by more than doubling fees for foreign students and closing loopholes that permitted indefinite stays. Similarly, Canada made changes under Prime Minister Trudeau’s leadership; since June 21, foreign nationals are no longer able to apply for post-graduation work permits after June 21, 2024.
