Australian Education Policy 2024: Annual Cap on International Student Enrolments and its Impact
TL;DR
The Australian Education Policy 2024 introduces a significant change with the implementation of an annual cap on international student enrolments. This policy aims to manage the growth of international students across higher education and vocational sectors. In this article, we break down the key elements of the new enrolment cap, discuss its impact on Australian universities, vocational institutions, and the broader economy, and explore expert opinions on how it may affect Australia’s reputation as a top destination for international students. Learn what this policy means for future international students and the long-term implications for Australia’s education sector.
The Australian International Studies landscape has recently taken center stage due to a government bill that promises to bring long-lasting changes to the experience of international students. The Education Services for Overseas Students (ESOS) Amendment Bill 2024 introduces a national cap on international student enrolments, limiting them to 270,000 students per year across higher education and vocational education sectors. This move, while positioned as a step toward maintaining educational standards and alleviating housing pressures, has ignited widespread debate within the education sector.
Universities and vocational education providers are expressing concerns about the bill’s potential to harm Australia’s standing as a global study destination. The proposed cap has raised alarms among stakeholders, many of whom argue that the measure will hurt Australia’s international education industry and fail to address the deeper issues plaguing both the education and housing sectors. With an election looming in 2025, the Albanese government faces mounting pressure to demonstrate its commitment to managing the nation’s growing international student population.
In this article, we will delve into the key aspects of the ESOS Bill 2024 and its potential implications for international students and educational institutions. Expert insights provide a comprehensive understanding of the likely consequences. We will explore how this bill, while aiming to preserve educational quality and ease housing shortages, may risk doing more harm than good, particularly in the thriving vocational education and training (VET) sector.
By setting an enrolment cap, the Australian government hopes to enhance the overall learning experience for domestic students and ease rental market pressures. However, many experts believe that the cap is an arbitrary measure that fails to solve the underlying problems facing both the education system and the housing market.
University-Specific International Student Caps for 2025
The ESOS Bill introduces specific international student caps for universities based on their past enrolment data. Twenty-three universities will be able to enrol more international students than they had in 2023 while 15 will have their numbers slashed. The increases are modest, not exceeding more than a few hundred additional foreign students.
Below is a detailed table showing the enrolment caps for major Australian universities for 2025:
International student caps for every university | |||||
|---|---|---|---|---|---|
| Universities | Proportion of international enrolments | Number of Student commencements | Indicative cap | %age change | |
Onshore | Overseas | ||||
2023 | 2019 | 2023 | 2025 | ||
| The University of Sydney | 46% | 11027 | 12790 | 11900 | -7% |
| Monash University | 33% | 9998 | 8310 | 10000 | 20% |
| The University of Melbourne | 41% | 8600 | 10000 | 9300 | -7% |
| The University of New South Wales | 39% | 7883 | 11075 | 9500 | -14% |
| The University of Queensland | 39% | 6888 | 7040 | 7050 | 0.10% |
| RMIT | 29% | 6599 | 6409 | 6600 | 3% |
| Deakin | 21% | 5768 | 5448 | 5800 | 6.50% |
| University of Technology Sydney | 25% | 4548 | 4779 | 4800 | 0.40% |
| Macquarie University | 23% | 4036 | 4556 | 4500 | -1% |
| Federation University Australia | 35% | 4019 | 2306 | 1100 | -52% |
| Central Queensland University | 23% | 3752 | 2948 | 3000 | 2% |
| La Trobe University | 21% | 3660 | 4095 | 4100 | 0.10% |
| The University of Adelaide | 30% | 3314 | 3155 | 3800 | 20% |
| Queensland University of Technology | 19% | 3124 | 4618 | 4500 | -2.50% |
| Charles Sturt University | 2% | 2994 | 162 | 1000 | 517% |
| University of Wollongong | 29% | 2980 | 4042 | 3700 | -8% |
| Griffith University | 20% | 2830 | 3817 | 3700 | -3% |
| Australian National University | 40% | 2807 | 3972 | 3400 | -14.50% |
| Victoria University | 33% | 2652 | 4046 | 3600 | -11% |
| Western Sydney University | 20% | 2640 | 3461 | 3400 | -2% |
| University of South Australia | 17% | 2566 | 2676 | 3050 | 14% |
| Edith Cowan University | 25% | 2488 | 3722 | 3600 | -3% |
| Swinburne University of Technology | 24% | 2397 | 4681 | 4500 | -4% |
| University of Tasmania | 14% | 2155 | 1746 | 2200 | 26% |
| Curtin University | 17% | 2118 | 3646 | 3500 | -4% |
| Southern Cross University | 20% | 2109 | 939 | 1300 | 38% |
| Murdoch University | 39% | 1780 | 5272 | 3500 | -34% |
| The University of Western Australia | 25% | 1536 | 2742 | 3000 | 9% |
| Flinders University | 21% | 1306 | 2692 | 3000 | 11% |
| Australian Catholic University | 13% | 1273 | 1580 | 1700 | 7.50% |
| The University of Newcastle | 13% | 1271 | 1565 | 1600 | 2% |
| University of the Sunshine Coast | 10% | 1188 | 578 | 1200 | 108% |
| James Cook University | 23% | 1135 | 1962 | 2200 | 12% |
| University of Canberra | 22% | 912 | 1422 | 1500 | 5% |
| University of Southern Queensland | 10% | 792 | 998 | 1000 | 0.20% |
| Charles Darwin University | 26% | 523 | 1997 | 2200 | 10% |
| University of New England | 6% | 354 | 681 | 700 | 3% |
| The University of Notre Dame | 5% | 26 | 292 | 700 | 140% |
| Source: Department of Education | |||||
Government’s Justifications for the ESOS Bill
The Albanese government claims that by reducing international enrolments, universities can improve the learning experience for domestic students. Smaller class sizes and a more balanced student body are expected to enhance the overall quality of education.
Another key rationale for the bill is to ease pressure on Australia’s rental market, which has been under strain in recent years. International students are often blamed for driving up demand for rental properties, and the government hopes that capping enrolments will relieve some of this pressure.
However, Susan Lloyd-Hurwitz, chair of the National Housing Supply and Affordability Council, argues that international students are not the primary drivers of Australia’s housing crisis. According to her, international students account for just 4% of renters nationwide, and reducing their numbers is unlikely to have a significant impact on housing availability.
The bill also seeks to clamp down on “diploma mills“—institutions that offer subpar education primarily as a pathway for immigration rather than for academic achievement. By imposing enrolment caps, the government aims to discourage institutions from inflating student numbers purely for profit.
Economic and Sector-Wide Implications
The ESOS Bill 2024, which proposes caps on international student enrolments, is likely to have significant economic consequences for Australia. International education currently contributes over $40 billion annually to the nation’s economy, with international students being pivotal to sectors such as retail, hospitality, housing, and transportation. Limiting their numbers, as the bill suggests, could lead to a decline in revenue for universities, which rely on higher tuition fees from international students to fund research, salaries, and infrastructure. This reduction would not only impact the education sector but would also ripple across industries reliant on student spending, potentially hindering Australia’s post-pandemic economic recovery. Regional and pathway education providers, which depend heavily on international enrolments, may face closures, further exacerbating the financial strain on local economies.
Moreover, the vocational education sector (VET), which serves a significant number of international students, is particularly vulnerable. The reduction in the cap for international VET students, set to halve by 2025, could lead to the closure of many private VET providers. Such changes could weaken Australia’s global competitiveness in the international education market, especially as countries like Canada and the UK introduce more flexible visa and work policies to attract students.
Experts warn that Australia risks losing its standing as a top study destination, which could have long-term implications for both its economy and global reputation. While the bill aims to address issues like housing shortages and immigration management, critics argue that the restrictive measures may ultimately do more harm than good, reshaping the education sector in ways that could have far-reaching economic consequences.
Luke Sheehy of Universities Australia warns that limiting international students could weaken the country’s post-pandemic economic recovery, reducing the export income crucial to GDP growth and harming multiple sectors reliant on student spending.
Conclusion
As Australia moves toward implementing the ESOS Bill 2024, the debate surrounding its potential benefits and drawbacks continues. While the government aims to improve education quality and ease housing pressures, experts warn that the economic and educational consequences could be significant. International study aspirants and education providers alike will need to monitor these developments closely as the new policies take effect in 2025.