This week, Australia announced a new restriction on foreign student admissions, capping the number of international students at 275,000 for the coming year. This move aims to reduce the current influx, which is nearly three times the new cap, and bring numbers back to pre-pandemic levels. The cap is part of broader immigration reforms designed to address infrastructure strain and rising housing prices exacerbated by recent high levels of immigration.
The Australian government is also targeting misuse of study visas, where foreign nationals may use them as a loophole to enter the country for other purposes. Currently, the number of international students at Australian state universities is 10% higher than before the pandemic, and private vocational schools have seen a 50% increase.
Universities are voicing concerns about the new cap. Foreign students contribute significantly to Australia’s economy, with the education sector generating approximately $50 billion annually, making it the second-largest economic sector after mining. Universities Australia has warned that reducing the number of students could widen the funding gap, impacting universities that are already in need of increased support.
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