Australia’s Student Cap: A Policy Gone Wrong?

Australian universities have raised alarms over potential mass job losses if the government rushes to impose caps on international student numbers. An industry body even described the proposed policy as an unprecedented “ministerial overreach.”

The Australian government is currently consulting on a plan to limit the number of international students that universities can enroll. This move aims to address public concerns about the high post-Covid migration numbers, which are worsening the national housing shortage, and questions about the quality of services provided by Australia’s universities.

However, during a heated Senate hearing, Universities Australia CEO Luke Sheehy warned that this policy could result in 14,000 job losses and cost the economy up to A$4.3 billion ($2.8 billion).

“Our sector is the country’s second-largest export, just behind mining, contributing nearly A$50 billion to the economy and supporting around 250,000 jobs,” Sheehy stated during the hearing in Canberra on Tuesday. “No other major export industry is being treated the way international education is right now.”

The government initially announced plans to cap international student numbers in the 2024 federal budget, following months of efforts by then-Home Affairs Minister Clare O’Neil to crack down on fraud related to short-term and student visas.

In July, Australia increased visa application fees for international students by 125%, raising the cost to A$1,600 per application.

While the final details of the policy are yet to be confirmed, a parliamentary inquiry is expected to report back by August 15, with the caps likely to take effect on January 1, 2025.

Andrew Norton, a higher education expert at the Australian National University, suggested in a recent report that the government should wait to see the impact of its current policy changes before imposing further restrictions on international students.

“On its current path, the government risks causing unnecessary damage to achieve its goals. Mistreating people who want to study in Australia will harm the country’s reputation,” Norton said in a paper published by ANU’s Migration Hub.