In a surprising turn of events, Australia’s opposition parties have blocked the proposed ESOS bill, which aimed to cap international student enrolments at 270,000 in 2025. This move has effectively stalled the legislation, leaving the future of international education in Australia uncertain.
The ESOS bill, introduced by the Albanese Labor Government, aimed to address concerns over migration and housing. However, opposition parties argued that the bill would fail to fix the underlying issues and instead harm the international education sector. With the bill stalled, the government is expected to rely on Ministerial Directive 107 (MD107), an immigration framework that classifies institutions into different risk levels and offers preferential treatment to “low-risk” institutions.
The impact of MD107 is already being felt, with a significant spike in visa rejection rates for students from certain countries. The Department of Home Affairs has announced that it will reopen evidence level updates under MD107, which will affect visa approval rates for providers. This move has been criticized by the private international education sector, which feels targeted by the government’s policies.
Concern and confusion have been raised among international students, providers, and stakeholders due to the stalled legislation and the reliance on MD107. Australia’s economy benefits greatly from the international education sector; in the fiscal year 2022–2023, foreign students contributed $24.7 billion to the country’s GDP. With thousands of jobs at jeopardy as a result of government regulations, the industry is also a significant employer.
Universities and providers are demanding clarity and sustainability in the government’s plans as the crisis develops. Phil Honeywood, CEO of the International Education Association of Australia, stated, “This sends all the wrong messages overseas, as we’re only a couple of months away from the start of the academic year.” Due to government policies that cause uncertainty, suffering, and misunderstanding for all parties involved, the future of overseas education in Australia is still unknown. It is obvious that immigration and international education will be major topics on the table as the nation gets ready for its upcoming federal election.
