Canberra: On Tuesday, Federal Education Minister Jason Clare announced that the Australian government intends to cap international student commencements at 270,000 for the 2025 calendar year. This decision is part of the forthcoming National Planning Level (NPL) reports and is designed to manage the influx of overseas students, as reported by ABC News.

Under the proposed cap, universities are expected to admit approximately 145,000 new international students next year, while an additional 95,000 places will be allocated to vocational education and training (VET) courses. The government suggests that this move will bring enrolment numbers back to pre-pandemic levels.

The decision has sparked concern within the higher education sector, with many expressing apprehensions about the potential economic impact of reduced enrolments. Despite these concerns, the government maintains that the cap will strengthen the integrity of the education sector and help institutions uphold their "social licence."

Data from May 2024 revealed that there were 810,960 international student enrolments, reflecting a 17 percent increase from 2019 pre-COVID figures, across universities and VET courses. During the same period, commencements also rose by 16 percent, totalling 289,230.

In tandem with this announcement, the government is under pressure to reduce net overseas migration, which peaked at 528,000 in 2022-23, down to 260,000 for the current financial year. On July 1, the government increased the cost of international student visas from $710 to $1600, a move that Minister Clare defended as necessary to fund educational initiatives.

While the announcement primarily focused on the overall cap, each university will receive a specific allocation under the International Student Profile (ISP). George Williams, Vice-Chancellor, and President of Western Sydney University emphasized the importance of international students to Western Sydney, a key area for government growth initiatives. He noted that these students are essential for addressing Australia's "key skill shortages," particularly in fields like nursing.

Professor Williams also highlighted the potential financial challenges posed by a significant cap on student numbers, which could limit the university's ability to offer equity programs such as food outreach and support for students from low socio-economic backgrounds. "Our university has the highest number of low SES students in the country," he stated during a Senate inquiry into the proposed restrictions. "We’re hearing from these students that they struggle to both study and meet basic needs, and the revenue generated from international students is vital to supporting domestic students who might not otherwise afford to attend university."