History is dotted with occasions that have changed the way people live and behave. The latest episode is that of the COVID pandemic, which has not only changed the way we work but has also changed the way we immigrate. The lockdown brought the global economy to a standstill, but when the floodgates were raised, countries rushed to catch up with the lost time and money. Education exports by major global economies like the UK, Canada, and Australia were seen as a quick fix to their standing economy. In a rush, these countries called many more international students than they could contain and support.

As these major economies started to regain their pre-COVID momentum, they began to realise the error they had made in regaining this momentum. One after another, these countries started to reduce the number of yearly student intake. Looking from the other side of the spectrum, international students and those in immigration felt that the increased student intake would stay forever. However, they soon realised that this was only an illusion.

In a recent development, the Australian government introduced legislation, called the National Planning Level (NPL), to enable new caps on the number of international students enrolled by educational institutions in Australia. These include private colleges, TAFE (technical and further education), and universities. Education providers are clearly instructed that they must have sufficient funds and associated facilities if they want to enrol students beyond the allocated limit. 

What does the National Planning Level Propose

Enrollment of new students in Australia for next year has been limited to 270,000. The enrolment of publicly funded universities will be set at 145,000, which matches the level of 2023. This indicates that enrolment in some universities will increase but reduce in others. The government proposes to strengthen the integrity and sustainability of the international education system by bringing such reforms.

Non-university higher education providers can take around 30,000 international students in 2025, and for vocational and educational training annual intake has been set to 95,000. The salient feature of this allocation is that all the universities will have even allocation and the ratio between international and onshore students will also be taken into account.

Australia and Canada Facing Similar Situation

Canada came up with annual student capping a few months ago, the major decision by Australia to limit student enrolment is similar to that of Canada. The situation faced by the two countries was the same and they have come out with similar solutions. During the COVID lockdown, education exports were reduced to almost zero. When the lockdown was removed, every country opened the gates to fill the shortage of international students. 

The flow of students to Canada which was otherwise at a normal level year after year, increased unexpectedly as there was a backlog of two years. This annual intake which hovered around 300,000 students before COVID, suddenly increased to 500,000 students. The sudden flow of students resulted in increased demand for basic living requirements, including housing, placing undue pressure on them. These caps from different countries, including Australia and Canada are an effort to bring the flow of international students to the pre-COVID level.

The national cap placed by Canada is based on the number of study permits that expire in a year. This means the students coming to Canada in a year should match the number of study permits that are expiring in a year. For 2024, Canada has set this target at 364,000 approved study permits, after deducting the number of extensions that are applied in a year. 

Why Australia Came to This Conclusion

Over the past four decades, successive Australian governments have worked towards developing the international education system. This includes creating favourable visa conditions, regulating international education providers, and conducting national branding campaigns. These initiatives have worked in everyone’s favour and Australia has long been one of the most preferred destinations for international students. Know more about studying in Australia by talking to overseas education consultants in Chandigarh.

International students in Australia have contributed immensely to the economic development. Nearly 250,000 jobs were supported by this fourth-largest export from Australia funding a significant number of the universities’ research. However, post-COVID there has been a rapid increase in student numbers which has led the government to worry about the shortage of rental accommodation in big cities and the increase of unscrupulous education providers.

Australia is not the first to have made such changes. Post-COVID, Canada and the UK also experienced rapid growth in new students and these countries had to find new ways quickly to bring the numbers to a sustainable level. The UK limited the option of bringing dependent family members and Canada introduced an international student cap along with limiting the post-study work visas. 

Another factor that contributed to bringing this measure is the extensive reporting of ghost colleges that have been exploiting the education system and international students. Some private colleges are tarnishing the reputation of the entire sector and the move aims to sustain the quality of education provided.

How are Australian Universities Taking the Intake Cap

Even though universities acknowledge the government’s move to control immigration numbers, they wonder as to why only one sector has been targeted. The international education sector is AUD 40 billion and curtailing its growth is risking the delivery of national priorities. Funds that come from international students are used in government funding for research, teaching and campus infrastructure.

The Ministerial Direction 107 introduced by the government was good enough to slow down visa processing and reduce yearly student intake. There is already a 23% reduction in yearly student intake as a result of Ministerial Direction hitting the Australian economy with nearly AUD 4 billion. Placing a limit on yearly student intake will be a bit too much to reduce the number too soon. 

Expectations from Placing Cap on International Student Intake

Intake caps will help countries to maintain the quality of education for which they are known.

Students from across the globe converge here for the exceptional education offered. Countries like Canada and Australia, where many students move, also want to make sure that their offers remain the best and provide the maximum dollar value.

Capping will also help the infrastructure of these countries to catch up with the demands placed by international students. Increased intake puts pressure on the economy to provide the standard of living for which these countries are known. Since housing and other developments are not able to match the rapid rise in international student numbers, it raises the need to place an intake cap.

Matters of immigration are much more complex than just matching the numbers. Increased international student intake also affects the perception of the local public towards immigration. The price of commodities will increase because of an increase in demand due to immigration. Ultimately it will affect the way immigration will be seen by the local public. 

The Future

We are quite hopeful that in a year or two, the immigration system will level out and we will not see so many ups and downs. The wave of uncertainty that was started by the pandemic is taking its time to settle down. In the meantime, all those aspiring to study in Australia as international students need to tread carefully and only with proper guidance and planning.