Australia Is Limiting Foreign Students' Intake. How Will It Impact Indians?

Last Updated:November 01, 2025, 20:11 IST

Australia Education Minister Jason Clare has said that Australian students must constitute more than 50% of total enrolments across institutions.

The ceiling, which was first announced in August 2024, imposes an annual restriction of 270,000 new international student enrolments for 2025. (Representational)

The Anthony Albanese-led Australian government has directed its universities to ensure domestic students remain the majority, in a bid to rebalance enrolments amid rising international admissions. Education Minister Jason Clare has said that Australian students must constitute more than 50% of total enrolments across institutions.

While speaking to Sky News, the Education Minister asserted that Australians should make up more than 50% of total enrollments in HEIs.

He said that while international students are significant to the country’s economy, HEIs must prioritise the locals. “There’s nothing more important for Australian universities than educating Australians," Clare said.

His statement came amid concerns that international students have exceeded the 50% threshold at leading Australian universities, including the University of Sydney, Murdoch University, and RMIT. The move is expected to impact global student mobility, particularly for Indians who form one of the largest groups seeking higher education in Australia.

According to the THE report, international students at the University of Sydney were recorded at 51% in 2024 (up from 49% in 2023 and 43% before COVID-19). Murdoch University reported a higher percentage at 57%, while RMIT University’s enrollment reached above 50% last year.

In August 2024, the government announced a cap of 270,000 new international student commencements for 2025 to address migration, housing, and quality concerns. According to a BBC report, the Australian government set a limit for each university or higher education institution on how many international students they can enroll.

Clare explained that the measure was necessary “to manage population growth, housing affordability and integrity in the student visa system."

Saurabh Arora, Founder and CEO of University Living, said the decision marks “a moment of reckoning" for the country’s higher education sector.

“With around 800,000 international students in 2024, Australia wants universities to maintain quality and capacity. Indian students will continue to find strong opportunities in IT, engineering, business, and healthcare, sectors still facing skill shortages," he said as quoted by the news outlet.

According to insights from the University Living Australia Report 2024, India accounts for nearly 17 percent of the 80,000 international students studying in Australia.

These students significantly contribute to priority sectors such as engineering, IT, business, and healthcare, which continue to face skill shortages. International education generated approximately A$51.5 billion in 2023-24, including A$21.7 billion from tuition and A$29.6 billion from goods and services.

Australian universities’ reliance on international students began a decade ago due to financial setbacks from the government. As they started looking for alternative pathways to generate revenue, enrollment of international students in major universities continued to rise.

For Indian aspirants, this could mean tighter competition and more strategic planning.

The Australian Department of Education (2025) confirmed that India remains the second-largest source of students, but slower visa processing and university-specific caps may delay new admissions.

Arora argued that controlling enrolments alone will not solve longstanding issues around student housing and infrastructure. He emphasised the need for long-term capacity planning, more purpose-built accommodation, and policy stability to protect both domestic access and Australia’s global standing as a top study destination.

With several countries tightening rules, some Indian students are exploring alternatives. “Destinations like Germany, France, Ireland, and New Zealand are becoming increasingly attractive," Arora said.

Data from the ICEF Monitor (March 2025) showed a 12% decline in Indian enrolments in Australia from the previous year.

Shobhit Gupta

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben...Read More

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben...

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