Canberra: In a major crackdown on student visas, Australia, on Tuesday, announced it would limit the enrolment number of international students to 2,70,000 for 2025. The latest measure was announced in line with the government's plan to limit migration which has contributed to a spike in home rental prices. The latest decision follows a raft of actions since last year to end COVID-era concessions for foreign students and workers in Australia that helped businesses recruit staff locally while strict border controls kept overseas workers out.
"There are about 10 per cent more international students in our universities today than before the pandemic and about 50 per cent more in our private vocational and training providers," Education Minister Jason Clare told a press conference.
Why is Australia imposing a curb on international students?
The reforms are designed to make the international student sector better and fairer, and this will set it up on a more sustainable footing going forward, Clare said. International education is one of Australia's largest export industries and was worth A$36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year. But polls have shown voters are concerned about large influxes of foreign students and workers putting excess pressure on the housing market, making immigration one of the potential major battlegrounds in an election less than a year away.
Net immigration hit a record high in the year to September 30, 2023, surging 60 per cent to a record 548,800, higher than the 518,000 people in the year ending June 2023.
Australia boosted its annual migration numbers in 2022 to help businesses recruit staff to fill shortages after the COVID-19 pandemic brought strict border controls, and kept foreign students and workers out for nearly two years. The record migration - driven by students from India, China and the Philippines - has expanded labour supply and restrained wage pressures, but it exacerbated an already tight housing market.
In a bid to contain the surge in migration, the government last month more than doubled the visa fee for foreign students and pledged to close loopholes in rules that allowed them to continuously extend their stay.
Will Australia's new crackdown impact Indian students?
The latest announcement is expected to impact Indian students significantly, as they represent the second-largest group of international students in Australia. Government data shows that a substantial number of Indian students—1,00,009 in 2022—were enrolled in Australian institutions. Moreover, during the period from January to September 2023, 1,22,000 Indian students were studying in Australia.
Earlier last month, when Canberra doubled the visa fee for international students, Universities Australia CEO Luke Sheehy said the government's continued policy pressure on the sector would put the country's position of strength at risk. "This is not good for our economy or our universities, both of which rely heavily on international student fees," Sheehy said in an emailed response to news agency Reuters. International education is one of Australia's largest export industries and was worth A$36.4 billion to the economy in the 2022-2023 financial year.
(With inputs from agency)
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