Limits On International Students In Australia’s Immigration Crackdown

To combat record migration and rising housing rental prices, Australia will limit overseas student enrollment to 270,000 by 2025. 

The move comes after a series of moves to terminate COVID-era privileges for international students and workers, which helped local firms recruit employees while tough border controls stopped overseas workers from entering Australia.

“There’s about 10% more international students in our universities today”

Education Minister Jason Clare said “There’s about 10% more international students in our universities today than before the pandemic, and about 50% more in our private vocational and training providers,”

The maximum number of new international students admitted to institutions will be 145,000, or around 2023 levels, and 95,000 for courses focused on practical and skills. Clare stated that the government would notify colleges of their unique enrollment limitations.

Without providing further details, the University of Melbourne stated in a statement that it had received its indicative cap and was evaluating the financial and other ramifications.

Vice-Chancellor Professor Duncan Maskell stated “The cap on international students will have detrimental consequences for our University, the higher education sector generally, and the nation for years to come,”

According to the University of Sydney, research is being done on the possible effects of the cap.

It said “We’ll continue to work collaboratively with governments and the sector on managed growth of international higher education, one of Australia’s most valuable exports,”

“The credit impact on larger universities will be neutral”

Universities Australia, the top association for universities, stated that the government’s plan will “apply a handbrake” to the sector. 

International education, Australia’s fourth-largest export after iron ore, gas, and coal, contributed A$36.4 billion ($24.7 billion) to the economy during the fiscal year 2022-2023.

According to Moody’s Ratings, the proposed cap will have a little impact on Australian universities, but it will not significantly worsen the sector’s operating environment.

Vice President and Senior Credit Officer, Moody’s Ratings, John Manning said “The credit impact on larger universities will be neutral, given any cap on commencements will constrain growth in international enrolments over time,”

Polls indicate voters are concerned about the housing market being overextended by large influxes of foreign students and workers, making immigration a potential major issue in the upcoming election. Net immigration reached a record high of 548,800 in the year to September 30, 2023, primarily driven by students from India, China, and the Philippines.

In an effort to stem the tide of migration, the government last month more than quadrupled the visa price for international students and promised to tighten loopholes in laws that allowed them to prolong their stay indefinitely.

Follow Wat-Not on Facebook, Twitter, and Instagram