Australia to cut incoming international student numbers amid concerns over migration and housing pricesa measure that has raised fears for the income of the country’s education sector.
The government of Prime Minister Anthony Albanese announced on Tuesday that would introduce a cap of 270,000 new international students from next year. This represents a a reduction of one third compared to the 402,600 international students who started at Australian higher education and vocational training institutions in 2023, according to data from the Department of Education.
The quota will be divided between universities and vocational training centres and must be approved by parliamentary vote.
The measure, adopted after months of debate in Australia and cuts similar to those applied to foreign students in the United Kingdom and Canada, aims Controlling immigration and improving the international student experience, while reducing pressure on housing rental markets andn cities such as Sydney and Melbourne, according to the government.
“This is about setting up the system in a better and fairer way,” said Jason Clare, Australia’s education minister, noting that international student numbers were 10% higher at universities and 50% higher on vocational courses than before the coronavirus pandemic.
Migration to Australia has boomed in recent years, with net arrivals of more than 500,000 people in the year to June 2023the most recent for which data is available, as the government has pushed to attract more workers to address labor shortages that emerged during the pandemic.
The largest proportion of temporary visas granted that year went to international students, for whom work restrictions were lifted in 2022, with 283,000.
But the influx of arrivals has sparked a public and political debate, with both main parties calling for migrant numbers to be cut to ease a housing crisis.
Clare explained that the limitation of international visas for students also aims to crack down on unscrupulous immigration agents“People are trying to take advantage of this sector to make a quick buck,” he said.
However, the new quota has drawn widespread condemnation from the education sector, with major universities and industry groups warning of huge budget deficits and up to 14,000 job losses if international student numbers were drastically reduced.
David Lloyd, president of academic body Universities Australia, said limiting student numbers would “put the brakes on” one of the country’s biggest export industries. “Cutting back the growth of the A$48 billion (US$32.6 billion) international education sector puts our nation’s ambition at risk,” he said in a statement.
Roy Green, emeritus professor and special adviser on innovation at the University of Technology Sydney, said the Vice-chancellors will be forced to prepare “worst-case” budget scenarios, He added that the move was “ominous” for the broader Australian economy, which needs to reduce its dependence on coal and iron ore exports. “It’s an act of self-harm,” he said.
Canberra released few details on Tuesday about the allocation of its student visa quota, which was set to allocate more places to regional universities, a move that could reduce demand in big cities but which some experts say could deter international students from studying at the country’s best-known institutions.
Others said the crackdown on international students sent a worrying signal, beyond the potential impact on gross domestic product and migration.
Susannah Patton of the Lowy Institute said Australia’s ability to attract international students was a form of “soft power”, as many regional leaders have forged strong ties with the country while studying there.
“Australia should protect this soft power asset,” he said.
