On Tuesday, Australia announced it will cap the number of international students at 270,000 for 2025. This decision is part of the government’s effort to control the high levels of migration that have led to increased home rental costs.
This decision comes after a series of actions taken since last year to end special COVID – related allowances for foreign students and workers. These allowances had helped businesses hire local staff while strict border controls kept international workers out.
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Education Minister Jason Clare said at a press conference that there are currently about 10% more international students in our universities compared to before the pandemic, and around 50% more in private vocational and training institutions.
Clare explained that these reforms are intended to enhance and balance the international student sector, establishing a more sustainable foundation for the future.
International education is one of Australia’s biggest export sectors, contributing A$36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year.
Polls have shown that voters are worried about the large number of foreign students and workers increasing pressure on the housing market. This concern is making immigration a major issue in the upcoming election, which is less than a year away.
Net immigration reached a record high of 548,800 for the year ending September 30, 2023, a 60% increase from the 518,000 people recorded for the year ending June 2023.
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In 2022, Australia increased its annual migration numbers to assist businesses in hiring staff to address shortages caused by the strict border controls during the COVID-19 pandemic, which had kept foreign students and workers out for almost two years.
The surge in migration, largely due to students from India, China, and the Philippines, has increased the labor supply and reduced wage pressures, but it has also worsened the already strained housing market.
To manage the rise in migration, the government more than doubled the visa fees for foreign students last month and committed to closing loopholes that previously allowed them to extend their stays indefinitely.
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