Australia to cap international student enrollments in 2025.

• Published On: 27 August 2024 at 11:47

Australia has announced a cap of 270,000 international student enrolments for 2025, in an effort to manage record migration levels and address rising home rental prices.

This decision comes after a series of steps taken since last year to phase out COVID-era concessions for foreign students and workers, which were implemented to address workforce shortages during strict border controls.

According to The Economy Times, Australia's Education Minister Jason Clare made this disclosure.

Clare noted that international student numbers at Australian universities are now about 10% higher than pre-pandemic levels, while private vocational and training providers have seen a 50% increase.

Clare emphasised that the reforms aim to make the international student sector more sustainable and equitable in the future.

International education remains a significant export industry for Australia, contributing AUD 36.4 billion ($24.7 billion) to the economy in the fiscal year 2022–2023.

However, rising public concern about the influx of foreign students and workers has put additional pressure on the housing market. With the election approaching, immigration is expected to be a major issue.

Net immigration hit a new high of 548,800 for the fiscal year ending September 30, 2023, up 60% from the 518,000 recorded in the fiscal year ending June 30.

This surge, driven primarily by students from India, China, and the Philippines, has increased labour supply and reduced wage pressures while exacerbating the housing crisis.

In response to the migration surge, the Australian government has taken steps to mitigate the impact, including more than doubling visa fees for foreign students and closing loopholes that previously allowed them to stay indefinitely.