(Web Desk Monitoring) — The Australian government has announced a cap on international student enrollments, limiting them to 270,000 for the year 2025. This decision is intended to address record levels of migration, which have driven up home rental prices.

This move is part of a broader strategy to phase out COVID-19-era concessions for foreign students and workers. These concessions had allowed businesses to hire local staff while border restrictions prevented overseas workers from entering the country.

Education Minister Jason Clare noted that international student numbers in Australian universities are currently about 10% higher than pre-pandemic levels, with a 50% increase in private vocational and training institutions. The reforms aim to create a more sustainable and equitable international student sector.

International education is a significant export for Australia, contributing A$36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year. However, public concern about the impact of large numbers of foreign students and workers on the housing market has intensified, making immigration a key issue in the upcoming election.

In response to the migration surge, the government has also more than doubled the visa fee for foreign students and committed to closing loopholes that previously allowed for extended stays.

Recent data shows net immigration hit a record high of 548,800 for the year ending September 30, 2023, a 60% increase from the previous year. While this rise in migration has helped address labor shortages and eased wage pressures, it has also worsened the housing market crisis.