Australia plans to cap the number of international students to relieve the housing market and manage immigration levels. The cap, detailed in the International Education and Skills Strategic Framework draft, is set to take effect on January 1, 2025.
Education Minister Jason Clare stated that the draft framework aims to lay the foundation for an international education sector. However, this move has raised concerns among the Group of Eight (Go8) universities, which rely heavily on international student fees. Moreover, the universities warned the government about the potential financial damage such changes could inflict.
Treasurer Jim Chalmers announced on May 14 that the number of international students at universities would be limited based on a specific formula, following the new budget’s revelation. Research highlighted that in 2022, the University of Sydney depended on international students for 44% of its revenue. Similarly, the University of Queensland saw 72.5% of its student income from international students, who, despite comprising only 38.9% of the student body, paid 2.6 times more in fees than domestic students.
International student enrollment in Australia has surged 2.5 times since 2005. Official figures show 662,895 international students enrolled in January–February 2024, marking a 22% increase from the previous year. In 2023, Australia hosted 975,229 international students, predominantly from China and India, with 437,485 enrolled in universities.
The cap is expected to reshape the international education sector, compelling universities to adjust financially and strategically while balancing the government’s goals of housing market relief and controlled immigration.
