Australia to Limit International Student Numbers to 270,000 by 2025: What Investors Need to Know
In a recent announcement, Australia revealed its plan to cap the enrollment of international students at 270,000 by 2025. This move comes as the government aims to control the surge in migration, which has led to increased rental prices in the housing market.
The decision to limit international student numbers follows a series of measures taken since last year to end COVID-era concessions for foreign students and workers. These concessions had allowed businesses to recruit staff locally while strict border controls kept overseas workers out.
Education Minister Jason Clare highlighted that there has been a 10% increase in international students in universities and a 50% increase in private vocational and training providers compared to pre-pandemic levels. The reforms are intended to improve the international student sector and ensure its sustainability in the future.
International education is a significant export industry for Australia, contributing A$36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year. However, concerns have been raised about the impact of large numbers of foreign students and workers on the housing market.
Net immigration reached a record high in the year ending Sept. 30, 2023, with a 60% increase to 548,800 people. This surge in migration, driven by students from India, China, and the Philippines, has expanded the labor supply and restrained wage pressures while exacerbating housing market tightness.
To address the influx of migration, the government recently raised visa fees for foreign students and pledged to close loopholes that allowed them to extend their stay continuously. These actions are aimed at managing the impact of migration on the economy and housing market.
In conclusion, investors should monitor the developments in Australia's international student sector and migration policies as they can have implications for the economy, housing market, and labor supply. By staying informed about these changes, investors can make better decisions to protect and grow their investments in the Australian market.