The Australian government has been given the go-ahead to cap the number of overseas students enrolled in order to secure the long-term viability of its international education sector. After four public hearings and minor delays, the Senate Committee has recommended enacting the ESOS Amendment Bill, which contains a cap on overseas students.
The goal of the proposed legislation is to control the expansion of the international education sector so as to maximize Australia’s benefits while preserving its social license from the Australian public. The Committee is aware of the concerns expressed by educational institutions, especially larger universities, about international students’ enrollment and course limitations.
Principal Suggestions:
– For public universities and some private colleges, eliminate course-level restrictions, institutional-wide caps will be imposed in their place.
– Cap allocations for private vocational providers: Both course and total enrollment caps will be given to these providers.
– Consultation required for final cap numbers: Prior to imposing limitations, the Minister shall confer with the Immigration Minister and the ESOS authorities.
– Exempt particular student classes: It’s unclear whether specific citizenships exempt students from enrollment constraints.
It is expected that the implementation of a nationwide cap system will supersede Ministerial Direction 107, which gives preference to student visa applications from institutions deemed low-risk. According to Education Minister Jason Clare, a cap on foreign enrollments would be a “better mechanism” and that the current order has “throttled the system”.
Responses and Upcoming Moves
In a report, the Greens strongly advise against passing the Bill unless key clauses are eliminated. Instead of implementing a “rushed reckless migration policy,” they propose that the government reconsult with the tertiary education industry to build a sustainable plan. The Senate will now discuss the Bill, and it is anticipated that the proposed cap would go into force in January 2025. With 145,000 new international students expected to enroll in public universities, the cap is set at 270,000 international students for 2025.
Consequences for the Economy of Australia
Australia’s economy benefits greatly from international education, which added $24.7 billion in the fiscal year 2022–2023. The industry fears that the cap will result in a loss of income and jobs. To address worries about migration and strain on the property market, the administration does, however, intend to return the number of international students to pre-pandemic levels.
