The Australian government has announced that it will limit the number of international student enrollments to 270,000 for the year 2025. This decision is aimed at reining in record migration levels, which have contributed to a spike in home rental prices.

The move follows a series of actions taken since last year to end COVID-19-era concessions for foreign students and workers in Australia. These concessions had helped businesses recruit staff locally while strict border controls kept overseas workers out.

Education Minister Jason Clare stated that there are currently about 10% more international students in Australian universities than before the pandemic, and around 50% more in private vocational and training providers.

The reforms are designed to make the international student sector more sustainable and fairer, according to Clare.

International education is a major export industry for Australia, worth A$36.4 billion ($24.7 billion) to the economy in the 2022-2023 financial year.

However, polls have shown that voters are concerned about large influxes of foreign students and workers putting excessive pressure on the housing market. This has made immigration a potential major battleground in the upcoming election, which is less than a year away.

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Net immigration hit a record high in the year to September 30, 2023, surging 60% to a record 548,800, higher than the 518,000 people in the year ending June 2023.

Australia had boosted its annual migration numbers in 2022 to help businesses recruit staff and fill shortages after the COVID-19 pandemic. This, coupled with the return of foreign students and workers, has expanded the labor supply and restrained wage pressures, but has also exacerbated the already tight housing market.

In an effort to contain the surge in migration, the government has more than doubled the visa fee for foreign students and pledged to close loopholes in rules that allowed them to continuously extend their stay.