Australia sets limits on foreign students

Australia is set to limit the intake of new international students, aiming to bring down overall migration to levels seen before the pandemic.

In 2025, the number of new enrolments in the nation's international student market will be limited to 270,000, making it one of the largest in the world.

The government announced on Tuesday that each higher education institution will be subject to its own set of restrictions. Vocational education and training providers will bear the brunt of the most significant cuts.

The change has sparked strong reactions from the tertiary education industry, with certain universities labelling it "economic vandalism."." However, Canberra maintains that the change will enhance the sector's quality and sustainability.

According to the most recent government figures from early 2024, Australia is home to approximately 717,500 international students.

Education Minister Jason Clare has recognized the significant impact that the pandemic has had on higher education. Australia's decision to send international students back home and implement stringent border controls has undoubtedly damaged the sector.

It is worth mentioning that the number of international students at universities has significantly increased, now 10% higher than before the COVID-19 pandemic. Additionally, private vocational and training providers have experienced an even more substantial surge, with a 50% increase in international students.

"With the return of students, there has also been a resurgence of individuals looking to exploit this industry for their financial gain," stated Mr. Clare.

In the past, the government has made allegations against certain providers, claiming their behaviour is "unethical." These allegations include accepting students who lack the necessary language skills to thrive, providing subpar education or training, and enrolling individuals who intend to work rather than study.

"According to Mr Clare, these reforms aim to improve and create a fairer system while ensuring long-term sustainability."

According to him, the restrictions will also help tackle Australia's high migration levels, which have exacerbated the challenges faced by housing and infrastructure.

In recent developments, the government has taken decisive action by implementing stricter minimum English-language requirements for international students. Additionally, individuals applying for a second study visa will be scrutinized more closely to ensure a more rigorous evaluation process. Furthermore, the government has not hesitated to crack down on numerous unscrupulous providers, clearly stating that such behaviour will not be tolerated.

According to Mr Clare, enrolments at public universities are expected to be reduced to 145,000 by 2025, roughly equivalent to the levels seen in 2023.

Private universities and non-university higher education providers have been granted permission to admit 30,000 new international students. However, vocational education and training institutions will face restrictions and can only enrol up to 95,000 students.

According to Mr Clare, the policy would also incentivize universities to increase housing availability for international students.

However, higher education providers argue that the industry is being unfairly blamed for housing and migration issues and that implementing a cap would severely damage the sector.

2022-23, the Australian economy greatly benefited from international education, with a staggering A$36.4bn (£18.7bn, $24.7) contribution. This impressive figure solidified international education as the fourth largest export for the country during that year.

Based on economic modelling commissioned by Sydney University, the proposed cuts have the potential to impact the Australian economy significantly. It is estimated that these cuts could result in a loss of $4.1bn and approximately 22,000 job losses in 2025. This is particularly concerning, considering that international students make up about half of the enrolments at Sydney University.

Earlier this year, Vicki Thomson, the chief executive of an organization that represents several esteemed universities in Australia, strongly criticized the proposed laws, labelling them "draconian" and "interventionist." She asserted that these laws would essentially amount to "economic vandalism."

While acknowledging that certain service providers may face tough financial choices, Mr. Clare firmly refuted the notion that the cap would devastate the industry.

"The claim that this undermines international education is completely inaccurate and unfounded," he stated.