The Australian government has introduced a new measure to control international student numbers through an informal cap on visa approvals. This decision, announced in December, will prioritise visa applications for educational institutions until they reach 80% of their proposed international student allocations for 2025.
This move follows the failed attempt to pass a bill introducing formal caps on international student numbers, blocked by the Coalition and the Greens in November. The policy has been implemented via a ministerial direction, providing immigration officials with guidance to manage visa applications.
Policy details and changes
A report from The Conversation noted that the prioritisation threshold replaces a previous directive that gave preference to students enrolling in “lower risk” institutions. That system faced backlash from universities, particularly regional and smaller providers, as it caused delays and higher refusal rates for prospective students.
The updated approach aims for a “fairer” distribution of student visas, especially benefiting regional and outer metropolitan universities, TAFEs, and vocational education providers. Universities Australia, a peak body for the sector, has welcomed the change, calling it a “commonsense decision” that offers greater certainty.
Broader immigration concerns
The informal cap is part of a larger effort by the Albanese government to address soaring net overseas migration. The reopening of international borders in 2021 led to an unexpected surge in migration, with temporary migrants, including international students, comprising a significant proportion of the increase.
To manage these numbers, the government has introduced several measures over the past year. These include higher English language requirements, a doubling of visa application fees to $1,600, and reductions in post-study visa durations. These measures align international education with other regulated migration programs.
Economic and sector impacts
International education remains a significant contributor to Australia’s economy, with the Australian Bureau of Statistics estimating its value at $51 billion. Universities rely heavily on international tuition fees, which generate approximately $16 billion annually—comparable to government funding for domestic students.
While the government is not aiming to reduce the total number of international students, it seeks to temper growth to pre-pandemic levels. Data indicates that the new policies are already curbing the influx of students, with arrivals showing a downward trend.
Outlook
The informal cap may provide short-term relief, but experts believe a more sustainable solution, such as legislative reform, will be necessary. Additionally, with a federal election on the horizon, migration policy is expected to remain a contentious issue, adding uncertainty to the international education sector.