Australia has put a cap on overseas student enrolments at 270,000 for 2025 in an effort to control record migration levels and mitigate the soaring cost of rental housing. The government is making this step as part of larger attempts to handle the population rise brought on by international students, which has had a major influence on the housing market.
Reversing Pandemic-Era Concessions
Australia has been progressively withdrawing the exceptional privileges offered to international workers and students during the Covid-19 pandemic since last year. Originally, when tight border restrictions were in place and foreign workers were prohibited from entering the nation, these concessions were implemented to assist local businesses in filling employment openings. In order to guarantee long-term sustainability, the administration is concentrating on system reform now that borders have opened.
Education Minister’s Vision for a Fairer System
In a recent news conference, Jason Clare, the minister of education, underlined the necessity of these reforms. “There’s 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,” Clare said. He emphasised that the modifications are intended to establish a more equitable and well-rounded foreign student market, laying the groundwork for future expansion without straining the nation’s infrastructure.
International Education – A Boon and a Challenge
Australia’s international education sector remains a crucial part of the economy, contributing A$36.4 billion ($24.7 billion) in the financial year 2022-2023. However, the influx of foreign students has raised concerns among voters about its impact on the housing market. The growing population of international students, particularly from India, China, and the Philippines, has increased the demand for housing, driving up rental prices and making affordable housing more scarce.
Immigration – A Key Election Issue
The immigration debate and its impact on the property market are expected to be major topics of discussion in the forthcoming election, which is expected to take place within the next year, given that net immigration reached a record high of 548,800 in the year ending September 30, 2023. In response to these worries, the government doubled the cost of visas for foreign students and closed the doors that let them stay permanently. These policies aim to balance the demands of the housing market and the education sector while managing the migrant wave.
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