Australia to limit foreign student enrolments in migration crackdown

SYDNEY — Australia said on Aug 27 it would limit the enrolment number of international students at 270,000 for 2025, as the government looks to rein in record migration that has contributed to a spike in home rental prices.

Under the new policy, the government will impose a "national planning level" for all international student commencements in 2025, limited to 145,000 in universities and 95,000 for the skills training sector, Education Minister Jason Clare said in a statement on Aug 27.

For other universities and non-university providers, commencements will be around 30,000.

The decision follows a raft of actions since 2023 to end Covid-19-era concessions for foreign students and workers in Australia that helped businesses recruit staff locally while strict border controls kept overseas workers out.

"There's about 10 per cent more international students in our universities today than before the pandemic and about 50 per cent more in our private vocational and training providers," Clare told a press conference.

The reforms are designed to make the international student sector better and fairer, and this will set it up on a more sustainable footing going forward, Clare said.

International education is one of Australia's largest export industries and was worth A$36.4 billion (S$32.19 billion) to the economy in the 2022-2023 financial year.

But polls have showed voters are concerns about large influxes of foreign students and workers putting excess pressure on the housing market, making immigration one of the potential major battlegrounds in an election less than an year away.

Net immigration hit a record high in the year to Sept 30, 2023, surging 60 per cent to a record 548,800, higher than the 518,000 people in the year ending June 2023.

Australia boosted its annual migration numbers in 2022 to help businesses recruit staff to fill shortages after the Covid-19 pandemic brought strict border controls, and kept foreign students and workers out for nearly two years.

The record migration — driven by students from India, China and Philippines — has expanded labour supply and restrained wage pressures, but it exacerbated an already tight housing market.

In a bid to contain the surge in migration, the government in July more than doubled the visa fee for foreign students and pledged to close loopholes in rules that allowed them to continuously extend their stay.

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