As Australia is working towards reducing overall migration to pre-pandemic levels, it plans a cap on the number of new international students it accept from next year.

Introducing the policy changes, Education Minister Jason Clare said, “New international student numbers for university, higher education and vocational training will be limited to 270,000 in 2025”

“It will mean that some universities will have more students this year than next year. Others will have less,” Clare added further.

According to official figures, international students contributed over AU$42 billion (US$28 billion) to Australian universities and vocational education centers in 2023. During the fiscal year ending on June 30, 2023, Australian authorities issued more than 577,000 student visas to foreign nationals.

The education minister pointed out that it would mean that same number of international students starting a course next year as there was before the Covid-19 pandemic.

Here the breakdown for 2025

• 145,000 new foreign students for universities
• 30,000 for other higher education providers
• 95,000 for vocational education and training

The government data from early 2024 cites, Australia is currently hosting 717,500 international students

Noting that higher education was hard-hit during the pandemic when Australia sent foreign students home and introduced strict border controls, Clare said, that the number of international students at universities is now 10% higher than before Covid-19, while the number at private vocational and training providers is up 50%.

“Students are back but so are the shonks – people are seeking to exploit this industry to make a quick buck,”he added.

Prime Minister Anthony Albanese said this month the industry was “absolutely vital” for Australia.

But he said universities should not be overly reliant on overseas students, in part because of the implications for migration.

Net migration to Australia surged 26.3 percent in calendar 2023 to 547,300, official figures show, with 751,500 people immigrating while 204,200 left.

(With inputs from agencies and BBC)