Australian to impose cap on international student enrollments to 270,000 by 2025

(MENAFN) On Tuesday, the Australian government unveiled its plans to impose a cap on international student enrollments, setting a limit of 270,000 students by the year 2025. This decision was announced by Education Minister Jason Clare, who outlined that the government had previously indicated in May its intention to regulate the number of international students permitted by educational institutions. The proposed cap is contingent on the passage of legislation through Parliament, with the objective of managing the influx of international students and mitigating the pressures associated with this demographic increase.

Minister Clare highlighted a significant rise in the number of international students attending Australian universities, noting a 10 percent increase compared to the figures prior to the COVID-19 pandemic. Additionally, the growth has been even more pronounced in the private vocational and training sectors, where international student numbers have surged by about 50 percent. This influx underscores the strong recovery and heightened demand for Australian education services as students return post-pandemic.

The international education sector has proven to be highly lucrative for Australia, with universities generating approximately AUD USD8.6 billion (around USD5.8 billion) in revenue from international students in 2022. This sector's financial contributions underscore its importance to the Australian economy. However, the government’s move to impose enrollment caps appears to be a response to the rising home rental prices, which have intensified pressure on housing markets and prompted the need for more stringent migration controls.

Education providers have voiced concerns regarding the potential implications of these caps. They worry that limiting student numbers could result in significant job losses and reduced revenue streams, affecting both the education sector and associated industries. This apprehension highlights the broader economic impact of the proposed policy changes and the ongoing debate about balancing the benefits of international student enrollment with domestic economic and housing challenges.

MENAFN28082024000045015839ID1108611070