Australia is set to implement a cap on the number of international students enrolling in its educational institutions, aiming to address growing public discontent over rising housing costs.

The cap, announced by Education Minister Jason Clare, will limit enrolments at publicly funded universities and vocational institutions to 270,000 in 2025, aligning the intake with pre-pandemic levels.

This move is part of broader efforts to create “a better and a fairer system,” according to Clare.

By maintaining the number of international students at levels similar to those before the COVID-19 pandemic, the government hopes to manage the pressures on housing and infrastructure while still benefiting from the economic contributions of international education.

Australian enrolments up by 10% post-pandemic

Enrolments at Australian universities have surged, with numbers sitting about 10% higher than before the pandemic.

Private vocational and training providers have seen an even more significant rise, with enrolments up by approximately 50%.

This surge in international students has led to record levels of net overseas migration, with 548,800 people arriving in the year to September 2023, a 60% increase from the previous year.

The significant influx of students and migrants has exacerbated an already tight housing market.

Since the onset of the pandemic, property prices across Australia have increased by more than 40%. In Sydney, the median house price now stands at approximately $965,000, a figure that reflects the immense pressure on housing availability and affordability.

How did the Australian government respond to exploitative practices?

The government’s decision to cap student numbers is also a response to growing concerns about exploitative practices within the education sector.

Minister Clare highlighted the return of “shonks”—a term used to describe individuals or entities engaging in dishonest activities—who seek to exploit the international education industry for quick profits.

The cap aims to curtail these practices by limiting enrolments and focusing on maintaining quality within the sector.

By reducing the number of students enrolled in private vocational providers, the government seeks to ensure that the education system remains robust and that international students receive the quality education they are promised.

This approach also aligns with broader government efforts to tighten regulations around international education and protect the reputation of Australia’s educational institutions.

Economic impact of the new policies

International education is a significant contributor to the Australian economy, generating billions of dollars annually.

The rapid increase in student numbers and the associated rise in migration have placed considerable strain on housing and other infrastructure, leading to public backlash.

The government’s new policy seeks to balance the economic benefits of international education with the social and economic pressures that have emerged.

By setting a cap on international student numbers, the Australian government is taking a proactive approach to managing the challenges associated with its booming education sector.

The cap aims to strike a balance between maintaining Australia’s appeal as a top destination for international students and addressing the housing affordability crisis that has become a central concern for many Australians.

As Australia moves forward with this new policy, the focus will likely shift towards ensuring that international students continue to receive a high-quality education while mitigating the adverse impacts of large-scale migration.

The cap is a significant step towards achieving this balance, but it will require ongoing monitoring and adjustment to ensure that the system remains fair and sustainable.

The government’s approach reflects a broader trend of reassessing the role of international education within the Australian economy, taking into account both the benefits and the challenges it presents.

As the world continues to recover from the impacts of the pandemic, Australia’s education sector will need to adapt to new realities while continuing to attract students from around the globe.

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