Australia will limit the number of foreign students to 270,000 in 2025 as part of a new migration policy. Education Minister Jason Clare announced on Tuesday that the government will cap new international students at 145,000 for universities and 95,000 for the skills training sector. This comes after almost 600,000 student visas were granted in the fiscal year 2023, a significant increase from previous years.
Universities have expressed concern that limiting foreign students could harm the lucrative tertiary education sector. “This is an important part of our economy, no doubt about it. That hasn’t changed,” Clare said in Sydney. “But as students have returned, it has put pressure on the reputation of the sector.”
For 2025, there will be about 15% more students allowed in universities, but 20% fewer in vocational colleges, Clare explained. The government began notifying universities of their specific caps on Tuesday.
Clare dismissed claims that the new policy would harm international education, stating, “This is about ensuring the sustainability of the sector for the future. We want students to come and study here.”
David Lloyd, Chair of Universities Australia, warned that the student caps would act as a “handbrake” on the tertiary education sector. He emphasized that migration controls should not come at the expense of the education sector, which is crucial to Australia’s research and development capabilities.
Australia is the latest country to tighten rules on international students due to migration concerns, following similar moves by Canada, the Netherlands, and the UK. In Australia, the government has been discussing these limits for months as part of a broader strategy to address high post-COVID migration numbers. The surge in migration has contributed to rising voter concerns about a housing shortage and soaring rents, which have become politically challenging for the Labor government.
Support for migration in Australia has dropped to its lowest level in five years, according to a recent poll by Essential, with 42% of respondents viewing it negatively.
In 2023, international students contributed A$48 billion ($32.5 billion) to the Australian economy, making education the country’s top services export.
The Property Council of Australia’s Student Accommodation Council described the cap of 270,000 student visas as “sustainable.” They believe the government’s announcement will reassure investors in student housing, encouraging continued investment in the sector.
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