The Australian government plans to limit the number of new international students to 270,000 by 2025, a reduction of 53,000 students or 16 percent compared to 2023.

Federal Education Minister Jason Clare announced this decision as part of a yet-to-be legislated National Planning Level (NPL), aiming to create a more sustainable education system.

These new restrictions are intended to alleviate pressure from record migration levels affecting housing and infrastructure in Australia.

Victorian Treasurer Tim Pallas criticized the cap, calling it a 'fundamentally destructive decision' that will negatively impact the state's economy.

Minister Clare noted that the reforms would help reduce exploitation in the international education sector by unethical providers.

Analyses suggest that the cap could result in nearly 35,000 fewer places in higher education and around 97,000 fewer in vocational education training.

Economic modeling predicts that the proposed enrolment cuts could cost the Australian economy $4.1 billion and lead to approximately 22,000 job losses in 2025.

The National Tertiary Education Union has urged the government to prevent job cuts in universities as a result of these changes.

Incentives for universities to create more housing for international students are also part of the policy, aiming to address accommodation issues.

While some universities will see reductions in international student numbers, regional universities will have the ability to enroll more foreign students than last year.

Higher education providers argue that the sector is being unfairly blamed for broader housing and migration challenges, fearing the cap could devastate the industry.

Melbourne University, which has a significant number of international students, opposes the cap, citing a lack of consultation with the government.