Australia to cap international student arrivals in 2025

New Delhi, Aug 27: The Australian government announced on Tuesday that the number of new international student commencements will be limited to 270,000 across higher education and vocational providers for the 2025 calendar year.

Each institution will receive its cap, with the most substantial reductions targeting vocational education and training providers. Australian Education Minister Jason Clare emphasized that this change would “improve the quality and longevity of the sector,” though it has sparked outrage within the education industry, with some universities according to the media branding the policy as “economic vandalism.”

Australia’s decision to introduce a cap on the number of new international students it accepts marks a significant shift in its migration policy, aiming to return overall migration to pre-pandemic levels.

The move is poised to affect not only Australia’s higher education landscape but also countries like India, which sends approximately one lakh students to study in Australia every year.

Australia, which hosts about 717,500 international students as of early 2024, has long been a favoured destination for global students, particularly from India. With the new cap in place, many Indian students could find it more challenging to secure a spot in Australian universities.

The restriction sets a limit of about 145,000 new starters for publicly funded universities and approximately 95,000 for vocational institutions in 2025. This figure is about 7,000 below pre-pandemic levels and 53,000 below last year’s enrolments.

The federal government will engage with universities to determine individual caps, considering recent enrolment levels and the concentration of international students in their universities.

Minister Clare described the policy as a means to create a “better and fairer” system, ensuring that the benefits of international education are more evenly distributed across the sector.

This cap is part of a broader effort by the Australian government to regulate the international education sector, following a surge in student numbers after the COVID-19 pandemic. Minister Clare highlighted that there are now about 10 percent more international students in Australian universities than before the pandemic, with a 50 percent increase in private vocational and training providers.

The government has already introduced stricter entry conditions and doubled the student visa application fee to combat fraudulent applications.

Australia’s international education sector is a major contributor to its economy, ranking as the fourth-largest industry in the country according to the Australian Bureau of Statistics.

The cap on new student commencements could have far-reaching implications. As the new policy takes effect, many prospective Indian students may need to reconsider their plans, potentially seeking alternatives in other countries with less restrictive migration policies.