Australia caps international student enrolments at 270,000 for 2025 amid migration and rental cost concerns 

Australia has set a cap of 270,000 for new international student enrolments in 2025 to address migration levels and rental costs.

This decision responds to concerns from locals facing difficulties in finding rental housing, with recent reports indicating that median weekly rent across Australia has reached $627, ranging from $770 in Sydney to $547 in Hobart. 

According to Reuters, this decision follows a broader strategy initiated last year to end COVID-era concessions for international students and workers, which had allowed businesses to hire locally during strict border controls. 

As of last year, Australia granted the same workplace rights to international students as to local workers, allowing them to work up to 48 hours per fortnight during term time and full-time during holidays.  

This in effect led to an increase in applications from foreign students and workers, contributing to high migration levels and further raising concerns among Australian citizens upon reports of net immigration reaching a record high of 548,800 for the year ending September 30, 2023, up 60% from the previous year, now, measures are being taken to curb the migration rate.

According to ApplyBoard, for a successful application to study in Australia, one must demonstrate access to A$29,710 to cover one year of living expenses. And if bringing a partner or children, additional funds must be shown: A$10,394 for a partner and A$4,449 per child. 

Cause Of Action

Education Minister Jason Clare explained that international student numbers at universities have increased by around 10% compared to pre-pandemic figures, with private vocational and training institutions seeing a 50% rise; 

“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,” Clare said at a press conference. 

The new cap, as reported, will limit university enrolments to 145,000, maintaining levels from 2023, and practical and skills-based courses to 95,000.  

Clare mentioned that universities would receive details about their specific enrolment limits soon. 

Universities Australia has expressed concerns about the impact of this policy. Chair Professor David Lloyd stated, “We acknowledge the government’s right to control migration numbers, but this should not be done at the expense of any one sector, particularly one as economically important as education.” 

What You Should Know

Reuters further revealed that International education, which is considered to be Australia’s fourth-largest export after iron ore, gas, and coal, was worth A$36.4 billion ($24.7 billion) in the 2022-2023 financial year. 

Despite the sectors contribution, internationally, there is still growing public concern about the effects of foreign students and workers on the housing market, which could become a key issue in the upcoming election.