Australia Caps International Student Enrolment Amid Housing Crisis

Australia plans to cap the number of international students at 270,000 for 2025 to control record migration contributing to rising home rental prices. The move ends COVID-era concessions and aims to create a fairer and more sustainable international education sector, an industry that significantly supports the economy.

Australia announced on Tuesday that it will cap international student enrolment at 270,000 for the year 2025, aiming to control the surge in migration, which has contributed to a spike in home rental prices.

This decision follows a series of measures taken since last year to end COVID-19 era concessions for foreign students and workers. These concessions had previously allowed businesses to recruit more staff locally while strict border controls kept overseas workers out. Education Minister Jason Clare remarked, 'There's about 10% more international students in our universities today than before the pandemic and about 50% more in our private vocational and training providers.'

The changes are designed to ensure a more equitable and sustainable international education sector moving forward. International education, one of Australia's largest export industries, contributed A$36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year. However, voter concerns about the housing market have made immigration a major issue ahead of an election in less than a year. Record high net immigration, driven by students from India, China, and the Philippines, has intensified housing market constraints. To curb this influx, the government recently increased visa fees and pledged to close extensions loopholes.

(With inputs from agencies.)