Getty ImagesAustralia will impose a cap on the number of new international students it can accept in an effort to reduce overall migration to pre-pandemic levels.
The country has one of the world’s largest international student markets, but new enrolments will be capped at 270,000 by 2025.
The government announced on Tuesday that each higher education institution would be subject to its own restrictions, with the biggest cuts to be borne by vocational education and training providers.
The change has angered the higher education sector, with some universities calling it “economic sabotage”, but Canberra says it will improve the quality and longevity of the sector.
According to the latest government figures for early 2024, Australia is home to around 717,500 international students.
Education Minister Jason Clare admitted that higher education had been hit hard during the pandemic, as Australia sent overseas students home and imposed tight border controls.
However, he also noted that the number of international students at universities is now 10% higher than before Covid-19, while the number at private training and vocational training establishments has increased by 50%.
“Students are back but so are the scammers – people are looking to exploit this industry to make a quick buck,” said Mr Clare.
The government has previously accused some providers of “unethical” behaviour – including accepting students who did not have the language skills to succeed, providing poor quality education or training and enrolling people who intended to go into work rather than study.
“These reforms are designed to make it better and fairer, and to set a more sustainable foundation for the future,” Mr Clare said.
He said the restrictions would also help address Australia’s record migration, which is putting further pressure on existing housing and infrastructure shortages.
The government has announced tougher minimum English language requirements for international students and tighter scrutiny of those applying for second student visas, while cracking down on hundreds of “rogue” providers.
Mr Clare said public university enrolments would fall to 145,000 by 2025, the same level as in 2023.
Private universities and non-university higher education institutions will be able to enroll 30,000 new international students, while vocational education and training institutions will be limited to 95,000.
The policy will also include incentives for universities to build more accommodation for international students, Mr Clare added.
But higher education providers say the sector is becoming a “scapegoat” for housing and migration issues, and the cap would devastate the sector.
International education is expected to be worth A$36.4 billion (£18.7 billion, $24.7 billion) to the Australian economy in 2022-23, making it the country’s fourth-largest export that year.
According to economic modelling released earlier this year by the University of Sydney – where international students make up about half of enrolments – the proposed cuts could cost the Australian economy $4.1 billion and lead to the loss of about 22,000 jobs by 2025.
Vicki Thomson, the chief executive of a body representing some of Australia’s most prestigious universities, described the proposed laws as “draconian” and “interventionist”, saying they amounted to “economic sabotage” in comments made earlier this year.
Mr Clare acknowledged that some service providers may have to make difficult budget decisions, but denied the cap would cripple the industry.
“To create the impression that this is somehow undermining international education is fundamentally wrong,” he said.
