The Coalition has announced it will block the Albanese Government’s proposal to cap international student enrolments at 270,000 next year. The controversial bill, which aimed to address housing and migration pressures by lowering the number of international students in Australia, now faces defeat, leaving Australia’s international education sector in unchartered territory.
The Coalition says the government’s plan will harm Australia’s education sector without solving the housing crisis or reducing migration pressures. In a joint statement, the Opposition Shadow Ministers Sarah Henderson, James Paterson, and Dan Tehan said, “The government’s chaotic approach to international education and migration has caused this crisis. Only a Coalition government can provide the decisive action needed to reduce migration and relieve pressure on housing and infrastructure.”
This decision puts the Coalition at odds with Labor and adds uncertainty for education providers, students, and the wider sector, who are continuing to face the realities of Ministerial Direction 107, which prioritises student visa processing based on risk to institutions and country of citizenship. This system has hurt smaller and regional institutions, which are struggling to enrol international students.
Education Minister Jason Clare has defended the proposal, accusing the Coalition of being inconsistent. “You can’t talk tough on immigration and then vote against a plan to limit migration numbers,” Clare said.
The proposed cap has already caused significant challenges for institutions. Some have paused international student applications for 2025, while others are working with waitlists. The uncertainty has disrupted budget planning and created widespread frustration within the sector, which has on full display during a series of Senate Hearings over the past few months.
The international education industry contributes $51 billion annually to Australia’s economy and supports thousands of jobs. University leaders say the cap risks damaging Australia’s global reputation as a top destination for students.
“Blaming international students for housing and migration problems is wrong,” said Luke Sheehy, Chief Executive of Universities Australia. “These students are a vital part of our economy and education system.”
The Greens also oppose the plan, calling it “a migration policy disguised as education policy.”
Where to from here?
With the Coalition and Greens blocking the bill and only a few weeks left before the January 1 start date, the future of Australia’s international education sector is uncertain. If the bill fails, existing visa rules will remain in place, and universities will continue to face challenges in managing student numbers and budgets.
This decision will have long-term implications for Australia’s international education industry, which is one of the largest in the world.
