Australia announced on Tuesday that it will cap the number of international student enrollments at 270,000 for 2025 in an effort to control record migration, which has been contributing to rising rental prices. This decision is part of broader measures to reverse COVID-era policies that had previously allowed foreign students and workers to fill local job vacancies during periods of strict border controls.
Education Minister Jason Clare noted that the number of international students currently studying in Australia is about 10% higher than before the pandemic, with a 50% increase in private vocational and training institutions. The new reforms aim to create a more sustainable and equitable international student sector moving forward.
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International education is a significant export industry for Australia, generating A$36.4 billion ($24.7 billion) in the 2022-2023 financial year. However, public concerns about the impact of large numbers of foreign students and workers on the housing market have made immigration a contentious issue, especially with an election less than a year away.
Net immigration reached a record high of 548,800 in the year ending September 30, 2023, driven by students from India, China, and the Philippines. While this migration has helped alleviate labor shortages and kept wage pressures in check, it has also worsened an already tight housing market.
To address the surge in migration, the Australian government recently doubled the visa fee for foreign students and committed to closing loopholes that allowed them to extend their stays indefinitely.
