Australia Caps International Student Enrolments Amid Housing Crisis

Australia plans to limit new international student enrolments to 270,000 by 2025 to address rising home rental prices and record migration. Education Minister Jason Clare announced caps for universities at 145,000 and for skills-based courses at 95,000. Universities are evaluating the financial impacts of this decision.

Australia announced on Tuesday that it will limit the number of new international student enrolments to 270,000 for the year 2025, in an effort to control record migration and its contribution to rising home rental prices. This initiative comes after several measures were introduced last year to phase out COVID-era concessions for foreign students and workers, aimed at supporting local business recruitment while strict border controls were in place.

Education Minister Jason Clare stated that international student numbers are currently 10% higher in universities and 50% higher in private vocational and training institutions compared to pre-pandemic levels. As part of the new plan, universities will be capped at 145,000 new enrolments—approximately the same as 2023 levels—while practical and skills-based courses will be limited to 95,000 new enrolments.

Both the University of Melbourne and the University of Sydney have begun assessing the financial implications of these caps. Universities Australia criticized the move, saying it will significantly hinder the higher education sector. Despite concerns, Moody's Ratings suggests that the cap will have minimal credit impact on larger universities. Immigration, a key issue for voters, reached a record high, driven by students from India, China, and the Philippines.

(With inputs from agencies.)