Australia Caps Numbers Of Foreign Students Amid Concerns Over Migrant Numbers

Australia is taking steps to control the number of new international students allowed into the country in 2025, capping it at 270,000.

The move is part of a broader effort to manage record-high migration numbers that have led to a spike in rental prices, which has become a growing concern for many Australians.

Since last year, the government has been rolling back the special COVID-era measures that made it easier for foreign students and workers to come to Australia.

During the pandemic, these concessions were a lifeline for businesses struggling to find local staff due to strict border controls. Now, with borders open and migration surging, the government is tightening the reins.

Education Minister Jason Clare pointed out that the number of international students in Australia has jumped significantly since before the pandemic.

Universities have seen about a 10% increase in foreign students, while private vocational and training providers have witnessed a whopping 50% rise.

To prevent further escalation, the government has decided to impose caps: universities will be allowed to enroll up to 145,000 new international students in 2025 (roughly the same as in 2023), while vocational courses will have a cap of 95,000.

The specifics of these caps will be communicated to universities individually, but the announcement has already ruffled some feathers. Universities Australia, a peak body representing the sector, expressed concern that these restrictions would act as a “handbrake” on an industry that’s crucial to the country’s economy.

Professor David Lloyd, Chair of Universities Australia, acknowledged the government’s right to regulate migration but warned against placing the burden too heavily on the education sector. International education is Australia’s fourth-largest export, bringing in a massive A$36.4 billion ($24.7 billion) in the 2022-2023 financial year.

The government, however, is faced with a dilemma.

Whilst the education sector is economically vital, there is growing public concern about the impact of large numbers of foreign students and workers on the housing market.

Polls show that many Australians are worried that the influx is driving up rents and adding pressure to already tight housing supplies. With an election looming in less than a year, the government is likely trying to balance economic interests with voter concerns.

Migration has hit record highs recently, with net immigration soaring by 60% in the year leading up to September 30th, 2023.

The surge has been driven largely by students from India, China, and the Philippines. The numbers are daunting: in the year ending September 2023, net immigration reached 548,800, surpassing the 518,000 recorded just three months earlier.

In response to this, the government is not just capping student numbers—they’re also making it more expensive and difficult for foreign students to stay in the country in the long-term. Last month, the visa fee for international students was more than doubled, and the government has pledged to close loopholes that have allowed some to extend their stay indefinitely.

In short, Australia is trying to find a middle ground. The government wants to manage migration numbers to ease the strain on housing while also keeping the education sector, which plays a big role in the economy, healthy.

However, with an election on the horizon and voters keeping a close eye on how migration impacts their daily lives, it’s a delicate balancing act that will likely remain a hot topic in the months to come.

Main Image: University of Sydney, via Wikipedia.