Japa: Australia Limits Foreign Student Enrollment to 270,000 Starting 2025

Australia is set to cap foreign student enrollments at 270,000 annually from 2025, a move that could significantly affect the country’s multi-billion dollar education sector. This policy, disclosed by Education Minister Jason Clare, aims to address mounting political pressure on immigration and restore student numbers to pre-pandemic levels.

At a press conference, Clare outlined that the new cap would see 145,000 spots allocated to university students, 30,000 to other higher education institutions, and 95,000 for vocational training. The policy shift moves away from the previous system that prioritized low-risk students, which had disproportionately favored top universities and slowed visa approvals for other institutions.

The decision comes amidst increasing political and public scrutiny over immigration’s impact on housing prices. An Essential poll by The Guardian found that 69 percent of Australians believe immigration is driving up housing costs. Opinions on immigration are divided, with 42 percent viewing it positively and 42 percent negatively.

Foreign students contributed over AU$42 billion (US$28 billion) to Australia’s education sector in 2023. However, the number of international student visas issued exceeded 577,000 for the fiscal year ending June 30, 2023. The cap aims to address this disparity and mitigate the sector’s reliance on international students while balancing migration pressures.

Universities Australia Chair David Lloyd acknowledged the government’s authority over migration but warned that the cap could impact the sector’s economic health. He stressed that international students play a crucial role in funding Australian universities.

Prime Minister Anthony Albanese also recognized the sector’s importance but cautioned against over-reliance on international students amid concerns about migration.

In response to exploitation within the sector, Clare announced the closure of over 150 “ghost colleges,” which had been used as loopholes for work rather than legitimate education.