SYDNEY: Australia will increase its foreign student cap by 9% to 295,000 next year, with a focus on applicants from Southeast Asia, the government announced on Monday. The move follows last year’s introduction of limits to curb record migration, which had contributed to rising housing prices.
Initially set at 270,000 places for 2025, an additional 25,000 spots will be added in 2026 as the policy successfully reduces “out of control” international student numbers. “This is about making sure international education grows in a way that supports students, universities and the national interest,“ said Education Minister Jason Clare.
Australia issued nearly 600,000 student visas in the 2023 financial year as post-pandemic demand surged. The largest student cohorts come from China and India, but the government aims to diversify intake by prioritising Southeast Asia.
To further manage migration, Australia doubled student visa fees in 2024 and tightened rules preventing indefinite extensions. “The numbers were growing out of control,“ said International Education Assistant Minister Julian Hill. “The government has taken tough decisions to get them to a more sustainable footing.”
Universities must now ensure housing access for students and recruit more from Southeast Asia to secure additional allocations. Hill emphasised the long-term diplomatic benefits, stating, “It’s important for Australia’s future soft power that we continue to bring the best and brightest from our neighbours.”
The policy aligns with Prime Minister Anthony Albanese’s efforts to reduce economic reliance on China. Universities Australia praised the decision, calling it “sensible” and vital for the sector, which contributed over A$51 billion ($33.05 billion) to the economy in 2024. - Reuters
