Getty ImagesAustralia will impose a cap on the number of new international students it can accept in an attempt to reduce overall immigration to pre-pandemic levels.
The country has one of the largest international student markets in the world, but new enrollments will be limited to 270,000 in 2025.
The government announced on Tuesday that each higher education institution would be subject to individual restrictions, with the biggest cuts going to vocational education and training institutions.
The change has angered the higher education sector, with some universities calling it “economically destructive”, but Canberra says it will improve the quality and longevity of the sector.
According to the latest government data in early 2024, there are approximately 717,500 international students in Australia.
Education Minister Jason Clare acknowledged higher education had been hit hard during the pandemic, with Australia sending foreign students home and imposing strict border controls.
However, he also pointed out that the number of international students in universities is now 10% higher than before Covid-19, while the number of international students in private vocational and training institutions has increased by 50%.
Mr Clare said: “The students are back but so are the jerks – people are looking to exploit the industry to make a quick buck.”
The government has previously accused some providers of “unethical” behavior, including accepting students who do not have the language skills to succeed, providing low-level education or training and recruiting people who intend to work rather than study.
“These reforms are designed to make it better, fairer and put it on a more sustainable footing for the future,” Clare said.
He said the restrictions would also help address Australia’s record immigration levels, which are adding pressure on existing housing and infrastructure issues.
The government has announced tougher minimum English language requirements for international students and tougher scrutiny of students applying for second study visas, while punishing hundreds of “dodgy” providers.
Clare said public university enrollment will fall to 145,000 students by 2025, around 2023 levels.
Private universities and non-university higher education institutions will be able to enroll 30,000 new international students, while vocational education and training institutions will be limited to 95,000 students.
Mr Clare added that the policy would also include incentives for universities to build more housing for international students.
But higher education institutions say the sector is being made a “scapegoat” for housing and immigration issues and the cap will destroy it.
International education was worth A$36.4 billion (£18.7 billion, US$24.7) to the Australian economy in 2022-23, making it the country’s fourth-largest export that year.
The proposed cuts could cost the Australian economy $4.1 billion and lead to about 22,000 job losses in 2025, according to economic modeling commissioned earlier this year by the University of Sydney, where foreign students make up about half of its enrollment.
Vicki Thomson, chief executive of the body representing some of Australia’s most prestigious universities, described the proposed laws as “draconian” and “interventionist” in comments published earlier this year. , these laws amount to “economic sabotage.”
Mr Clare acknowledged some service providers may have to make difficult budget decisions but denied the cap would cripple the sector.
“It’s absolutely wrong to give the impression that this is somehow undermining international education,” he said.
