Australia has announced a significant change in its approach to international education by introducing a cap on the number of new international students it will accept, starting in 2025. The decision, aimed at reducing overall migration to pre-pandemic levels, has sparked controversy within the higher education sector.
Australia, known for having one of the largest international student markets globally, will limit new enrollments to 270,000 in 2025. This policy is designed to curb the surge in student numbers that has occurred post-pandemic. According to Education Minister Jason Clare, while the sector was hard-hit during the pandemic, with border closures forcing international students to leave, numbers have rebounded strongly. Currently, Australia hosts about 717,500 international students, a figure that has surpassed pre-pandemic levels by 10% for universities and 50% for private vocational and training providers.
The cap will impact various educational institutions differently, with the most significant reductions targeting vocational education and training providers. Public universities will see enrollments maintained at approximately 145,000 new students, private universities and non-university higher education providers will be restricted to 30,000, and vocational institutions will be limited to 95,000 new international students.
Minister Clare stated that these measures are necessary to ensure the sustainability and quality of Australia’s education system, addressing concerns about unethical practices by some providers. The government has accused some institutions of exploiting the system by enrolling students lacking the necessary language skills or by providing substandard education. The new policy also aligns with efforts to address Australia’s record migration levels, which have put pressure on housing and infrastructure.
The higher education sector has reacted strongly against the cap, with some universities describing the move as “economic vandalism.” The sector argues that the cap could significantly harm Australia’s economy, with estimates suggesting a potential loss of $4.1 billion and 22,000 jobs in 2025 alone.
Despite the backlash, the government remains firm in its stance, emphasizing that the reforms will create a more sustainable and fair education system in the long run. Additionally, incentives for universities to build more housing for international students have been proposed, aiming to mitigate the impact on the housing market.
Australia’s international education sector, which contributed A$36.4 billion to the economy in 2022-23, faces a challenging transition as these new regulations come into effect. The debate continues over whether the cap will safeguard or stifle one of the nation’s most valuable exports.