Ahead of the May 3 federal election, the Coalition has announced a plan to cap new international student enrolments in Australia at 240,000 per year. The proposed figure is 30,000 lower than Labor’s earlier cap and is part of a broader effort to manage migration and ease pressure on housing markets in major cities.
Under the plan, public universities would be allowed to enrol no more than 115,000 international students annually. Private and non-university higher education providers could enrol up to 125,000. Additionally, the Coalition aims to limit the share of overseas students at public universities to 25% of their total enrolment, starting next year. These measures would not apply to private universities or vocational training institutes.
Speaking at a housing development in Melbourne, Opposition Leader Peter Dutton said the proposal was aimed at increasing housing access for Australians. “I want to make sure that we can get young Australians into houses. That’s really our main priority here,” he said.
If elected, the Coalition also plans to introduce higher visa fees. International students applying to Group of Eight universities — including the University of Sydney, University of Melbourne, and Australian National University — would be charged a $5,000 application fee. Other students would pay $2,500. A further $2,500 fee would apply to students requesting to change their education provider.
“The focus of our lower cap is to address housing availability and affordability, particularly in Melbourne and Sydney,” said Shadow Education Minister Sarah Henderson. “That’s where the excessive numbers of students are, and that is where we are focused.”
Universities Australia, which represents 39 public universities, criticised the policy. Chief Executive Luke Sheehy told Australia's ABC News that the move could damage one of the country’s major economic sectors.
“International students contribute over $50 billion to the economy and support more than 250,000 jobs across the country. Every dollar from international students is reinvested into the university system. Reducing that income stream will mean less support for Australian students, fewer research breakthroughs and fewer opportunities to grow the skills our economy needs.”
Government figures show that around 315,000 international students started courses in higher education and vocational training in 2024. Last year, the Coalition opposed Labor’s attempt to legislate enrolment caps, joining with the Greens to block the bill.
The Coalition’s proposal is expected to impact large metropolitan universities the most — particularly those in the Group of Eight — where international students currently make up more than 25% of the student population.
Critics argue that the policy links international student numbers to the housing crisis without evidence. A University of South Australia study found no direct connection between student numbers and rental costs.
Labor has responded by defending its current regulatory approach. Ministerial Direction 111 — introduced in December — allocates student visa processing priority based on institutional quotas. Previously, Direction 107 favoured applications from students attending lower-risk universities.
Foreign Minister Penny Wong said, “We have put in place policies that seek to manage better the number of foreign students coming into Australia. He [Mr Dutton] opposed that.”
Education Minister Jason Clare added, “Last year, Peter Dutton’s reckless arrogance killed international student caps and in the process he killed his credibility. This isn’t an international student cap, it’s a con.”
With both parties committed to bringing migration back to pre-pandemic levels, international education remains a key focus in the national debate on population, housing, and economic priorities.
Under the plan, public universities would be allowed to enrol no more than 115,000 international students annually. Private and non-university higher education providers could enrol up to 125,000. Additionally, the Coalition aims to limit the share of overseas students at public universities to 25% of their total enrolment, starting next year. These measures would not apply to private universities or vocational training institutes.
Speaking at a housing development in Melbourne, Opposition Leader Peter Dutton said the proposal was aimed at increasing housing access for Australians. “I want to make sure that we can get young Australians into houses. That’s really our main priority here,” he said.
If elected, the Coalition also plans to introduce higher visa fees. International students applying to Group of Eight universities — including the University of Sydney, University of Melbourne, and Australian National University — would be charged a $5,000 application fee. Other students would pay $2,500. A further $2,500 fee would apply to students requesting to change their education provider.
“The focus of our lower cap is to address housing availability and affordability, particularly in Melbourne and Sydney,” said Shadow Education Minister Sarah Henderson. “That’s where the excessive numbers of students are, and that is where we are focused.”
Universities Australia, which represents 39 public universities, criticised the policy. Chief Executive Luke Sheehy told Australia's ABC News that the move could damage one of the country’s major economic sectors.
“International students contribute over $50 billion to the economy and support more than 250,000 jobs across the country. Every dollar from international students is reinvested into the university system. Reducing that income stream will mean less support for Australian students, fewer research breakthroughs and fewer opportunities to grow the skills our economy needs.”
Government figures show that around 315,000 international students started courses in higher education and vocational training in 2024. Last year, the Coalition opposed Labor’s attempt to legislate enrolment caps, joining with the Greens to block the bill.
The Coalition’s proposal is expected to impact large metropolitan universities the most — particularly those in the Group of Eight — where international students currently make up more than 25% of the student population.
Critics argue that the policy links international student numbers to the housing crisis without evidence. A University of South Australia study found no direct connection between student numbers and rental costs.
Labor has responded by defending its current regulatory approach. Ministerial Direction 111 — introduced in December — allocates student visa processing priority based on institutional quotas. Previously, Direction 107 favoured applications from students attending lower-risk universities.
Foreign Minister Penny Wong said, “We have put in place policies that seek to manage better the number of foreign students coming into Australia. He [Mr Dutton] opposed that.”
Education Minister Jason Clare added, “Last year, Peter Dutton’s reckless arrogance killed international student caps and in the process he killed his credibility. This isn’t an international student cap, it’s a con.”
With both parties committed to bringing migration back to pre-pandemic levels, international education remains a key focus in the national debate on population, housing, and economic priorities.
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