Australia will implement a cap on the number of new international students it admits, aiming to return overall migration to pre-pandemic levels.

For 2025, the country will limit new enrollments to 270,000. Each higher education institution will face individual limits, with the most significant reductions affecting vocational education and training providers.

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This policy has sparked backlash from the tertiary education sector, with some universities criticizing it as “economic vandalism.” However, the government argues that it will enhance the sector’s quality and sustainability. Currently, Australia hosts around 717,500 international students, and while the number at universities has risen 10% since before the pandemic, those at private vocational and training institutions have increased by 50%.

Education Minister Jason Clare highlighted that higher education suffered during the pandemic due to strict border controls, but he noted the current influx of students and issues with some providers’ ethical practices.

The new restrictions aim to address record migration levels, alleviate housing and infrastructure pressures, and encourage better practices within the sector.

Enrolment caps for 2025 will see public universities admit 145,000 international students, private universities 30,000, and vocational institutions 95,000.

The policy also includes incentives for universities to develop more student housing. Critics argue that these caps could severely impact the industry, which was valued at A$36.4 billion in 2022-23, and could lead to significant economic losses and job reductions.

Despite this, Clare maintains that the reforms are essential for creating a more sustainable and equitable system.