Australia’s international education landscape is undergoing significant changes. The latest government figures show that the country is currently hosting approximately 717,500 international students as of early 2024. What began with a shift from the Genuine Temporary Entry (GTE) requirement to the Genuine Student (GS) requirement has now culminated in a cap on international student enrolments, limiting admission to 270,000. Along the way, visa fees have doubled (from AUD 710 to AUD 1,600) and minimum savings requirements for applicants have increased (from AUD 24,505 to AUD 29,710), marking a series of reforms aimed at managing the growing influx of students.
These measures are part of a broader effort by the Australian government to ensure the sustainability of its immigration and education systems. Australian Education Minister Jason Clare says the cap on international student enrolment is intended to create “a better and fairer system.” Let’s first look in more detail at the reasons behind this change.
Reasons for recent changes in Australia’s student policy
The international student enrolment cap, set at 270,000, is further split between different types of institutions. For publicly funded Australian universities, the cap will be set at 145,000, close to the figure for 2023. In the vocational sector, there were 52,996 and 60,122 Indian students enrolled in 2022 and 2023 respectively. The total cap for this sector for all incoming international students has been set at 95,000. Other private and non-tertiary education institutions will have an enrolment cap of 30,000 by 2025.
“There are now around 10% more international students in our universities than there were before the pandemic, and around 50% more in our private vocational training providers,” Education Minister Jason Clare said during a press conference. It was also noted that the rise of the vocational training sector indicates a growing interest in work rather than traditional academic studies, leading to lost opportunities for those who are genuinely interested in studying in Australia.
This problem is further exacerbated when many international students prolong their stay in the country by enrolling in multiple courses, one after another, while applying for permanent residency. The government’s recent changes can be seen as an attempt to rectify and streamline the immigration system. Net migration to Australia hit an all-time high with a 60% increase for the year ending 30 September 2023.
Last year, international students contributed to more than half of Australia’s GDP growth. In 2022-2023, international education contributed almost A$36 billion to the Australian economy.
However, this increased influx of international students has put undue pressure on already struggling housing and labour markets, forcing the Australian government to adopt these strict measures. It is important to remember that no country will adopt drastic measures without a significant underlying problem.
Australia’s student policy compared to Canada and the UK
Australia is not the only country tightening its policies for international students. Canada earlier this year introduced a cap of 360,000 study permits to manage rising student numbers and ease pressure on the housing and labour market. Similarly, the UK has implemented measures to limit international student numbers by restricting students’ ability to bring dependents, leading to a 16% drop in visa applications in 2024. These actions reflect a global trend of governments trying to balance the benefits of international students with the challenges posed to infrastructure, labour and housing markets.
Canada’s cap aims to reduce the number of international students by 35% in high-demand areas like the Greater Toronto Area, particularly in vocational and degree programs. The U.K. has focused on limiting migration by targeting students with dependents rather than limiting enrollment outright. Both countries are responding to the post-pandemic surge in student numbers but have not introduced sector-specific restrictions.
In contrast, Australia’s approach is more targeted, with specific limits applied to public universities and private vocational training institutions. This strategy is expected to disproportionately affect large, research-intensive universities in cities such as Sydney and Melbourne, making it harder for international students to access top institutions. Australia’s sectoral limits go beyond those of Canada and the UK, and set a new standard for government intervention in international education.
Impact on Indian students and the response of Australian universities
The enrolment cap will significantly impact Indian students. The reduction in caps across different sectors, especially in the vocational education and training sector, may reduce options for students seeking courses directly linked to employment. As a result, Indian students may have to prioritise early applications and focus on public universities, where competition is high but opportunities are more abundant.
This shift may force students to focus more on public universities, where competition remains intense but opportunities are broader. In addition, with fewer places available at private, non-tertiary institutions, Indian students may have to carefully evaluate their study plans and apply early to secure a place. The changes reflect a broader strategy by the Australian government to manage migration and ensure that international students contribute meaningfully to the economy without overwhelming the labour and housing markets.
The immediate impact of recent changes to Australia’s international higher education policies is evident in the significant decline in visa approvals and dissatisfaction among top universities. Between January and April this year, 74,421 study visas were issued, marking a 30% drop from the 104,808 visas granted over the same period in 2023. The vocational education and training sector saw an even steeper decline, with a 69% decline in visa grants, while the language training sector saw a 56% drop.
Considering how much international students contribute to the Australian economy, this could be a huge blow to the country. The University of Melbourne issued a statement acknowledging that it had received its indicative cap and is currently assessing the financial and other implications. Vice-Chancellor Professor Duncan Maskell expressed concern, stating: “The cap on international students will have detrimental consequences for our University, the wider higher education sector and the nation for years to come.”
The Group of Eight (Go8), which includes Australia’s leading research-intensive universities such as the University of Melbourne, the Australian National University, the University of Sydney and others, has criticised the cap as “bad policy”, emphasising its potential negative impact on the education sector. That said, it’s not all doom and gloom. While these changes may bring some challenges, they also open the door to a more balanced and sustainable system for international students. Australia is clearly focused on finding the right balance, and only time will tell how things play out. For now, staying informed and planning will help students and universities navigate this evolving landscape. Let’s see what the future holds!
(Author Ankit Mehra is CEO and co-founder of GyanDhan, an education funding platform. Views expressed are personal.)
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