In a move to address rising migration levels and the subsequent surge in home rental prices, Australia has set a limit on international student enrolment for 2025. The new cap of 270,000 international students aims to manage the impact of record migration on the housing market.
This decision comes as part of a broader strategy to reverse Covid-era concessions that had previously helped businesses by allowing easier access to foreign students and workers. These concessions were introduced when strict border controls prevented overseas workers from entering the country.
Government’s Approach to Reform
Education Minister Jason Clare highlighted the current situation, stating that international student numbers are about 10% higher in universities and 50% higher in private vocational and training institutions compared to pre-pandemic levels. Clare emphasized that these reforms are designed to enhance the international student sector, making it more sustainable and fairer for the future.
Economic Impact and Voter Concerns
International education is a major contributor to Australia’s economy, with the sector generating A$36.4 billion ($24.7 billion) in the 2022-2023 financial year. Despite its economic importance, rising numbers of foreign students and workers have intensified voter concerns about their impact on the housing market. This issue is expected to be a significant topic in the upcoming election.
Migration Surge and Housing Pressures
Australia experienced a record high in net immigration for the year ending September 30, 2023, with a 60% increase to 548,800. The influx of students from countries like India, China, and the Philippines has boosted the labor supply but also contributed to worsening housing shortages.
To curb this migration surge, the Australian government has recently more than doubled visa fees for foreign students and is committed to closing loopholes that allowed for indefinite extensions of their stay.
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