International education is a key export industry for Australia

Australia announced on Tuesday that it will cap the enrollment of international students at 270,000 for the year 2025. This decision comes as part of the government's broader strategy to manage record migration levels, which have been linked to rising rental prices across the country.

This move follows a series of measures introduced over the past year to phase out COVID-era allowances for international students and workers. These concessions had previously allowed businesses to fill staffing gaps during the pandemic when strict border controls limited the availability of overseas workers.

Education Minister Jason Clare, during a press conference, highlighted that the number of international students currently enrolled in Australian universities is about 10% higher than pre-pandemic levels. Additionally, there has been a 50% increase in students attending private vocational and training institutions. Clare emphasized that these reforms aim to create a more sustainable and equitable international education sector in Australia.

International education is a key export industry for Australia, contributing A$36.4 billion to the economy during the 2022-2023 financial year. However, public concern over the impact of large numbers of foreign students and workers on the housing market has made immigration a central issue, particularly as a national election looms less than a year away.

The surge in net immigration, which reached a record 548,800 in the year ending September 30, 2023, represents a 60% increase compared to the previous year. The Australian government had previously increased annual migration numbers in 2022 to address labor shortages exacerbated by the pandemic, but the resultant strain on housing has intensified the debate over immigration policy.