Australia Plans Big Cuts to Foreign Student Numbers to Tackle Housing Crisis

For many years, Australia welcomed international students Australia students from all over the world. It was one of the top choices for higher education to invite students globally. The high-ranking universities offer cutting-edge research and a friendly environment. International education was even called “the biggest export we don’t dig out of the ground.”

But now, things are changing.

Both of Australia’s major political parties are planning big cuts to the number of foreign students allowed into the country. They believe this will help ease the severe housing crisis ahead of next month’s national election. With home prices soaring and rental homes hard to find, politicians say fewer international students Australia will mean less pressure on housing.

A student, originally from Pakistan, knows what it used to be like. He moved to Australia a decade ago to study agricultural science. After earning his doctorate, he stayed, worked for the state government, and became a citizen. Today, he teaches at La Trobe University in Melbourne and owns a home.

He believes students like him bring more good than harm to Australia. “There should be more focus on improving the selection process rather than putting a cap on numbers,” he said.

Tougher Rules Ahead

Last year, Prime Minister Anthony Albanese’s government tried to limit international student numbers but couldn’t pass the law. Instead, they raised visa fees and slowed down the visa process, which already led to fewer new students arriving.

Now, Peter Dutton, leader of the opposition Liberal Party, wants even tougher limits. He plans to cut 30,000 spots from the annual student intake, bringing the cap to 240,000 students. He also promises to raise visa fees as high as 5,000 Australian dollars (around USD 3,200).

A Big Shift in Policy

During COVID-19, Australia’s strict border controls kept many international students out. After the pandemic, the government worked hard to bring them back by offering fee rebates and removing work limits. That led to a record number of arrivals in 2023 and 2024, with more than one million international students enrolled last year — the highest ever.

However, the sudden rise in students came alongside a sharp rise in home prices. Since 2020, Australian home values have jumped by about 45%. Sydney is now the world’s second least-affordable city, behind Hong Kong.

While many things, like labor shortages, high building costs, and tough construction rules, are causing the housing shortage, international students have become an easy target for politicians. They don’t vote, making it easier for leaders to blame them without losing support.

At a recent election debate, a 74-year-old woman expressed what many are feeling: “When will our government say, Australia belongs to Australians?” she asked, worried about her children’s chances of ever owning a home.

A Bigger Picture

Experts say the problem is more complicated. Andrew Norton, a professor at Monash Business School, said international students do add to housing demand, but this recent spike is unusual, caused by pandemic-related delays. He believes that simply capping student numbers won’t fix the deeper issues in Australia’s migration and housing policies.

Many critics also point out that students mainly rent apartments near universities, not the suburban homes that first-time buyers want.

Students Still See Australia as a Land of Opportunity

For students from Indonesia, Australia is still a land of hope. Clifford is studying law and commerce at the University of Sydney, where almost half the students are from overseas. Tuition fees make up about 80% of the university’s revenue.

He believes international students give more to Australia than they take. “Most students either want to stay and work here or go back home and strengthen ties with Australia,” he said. “That can only be good for Australia.”

Looking Ahead

Australia has always been a nation built by immigrants. Around 30% of its people were born overseas, and almost half have at least one parent born abroad.

But today, the conversation has shifted. Like the United States, Britain, and Canada, Australia is now rethinking how many students from overseas it wants to welcome — and what role they should play in the future. Stay tuned with Asif Consulting for the latest information.