Photography by Ibrahim Muan Abdulla
Australia’s international education sector—long regarded as one of the country’s most valuable exports—is now at the centre of a fierce national debate. A newly proposed policy to reduce the number of international students has sent ripples through campuses, policy circles, and student communities.
The proposal, framed as a response to the housing crisis and infrastructure strain, has implications far beyond real estate. For students—domestic and international alike—this is not just a political proposal; it’s a shift that could reshape the university experience for years to come.
The Politics of Population: Targeting International Students
In April, opposition leader Peter Dutton pledged to cap international student enrollment at 240,000 annually. A reduction of over 80,000 annual enrollments compared to 2023 and 30,000 fewer enrollments to Labor’s proposal.
In addition, Dutton announced a cap of around 25 per cent on international student enrolment at public universities—expected to impact metropolitan universities disproportionately— and an increase in the non-refundable student visa application fee to between $2500 and $5000 for students applying for Group of Eight (Go8) Universities, following Labour’s hike in Visa fees from $700 to $1600 last July.
While Dutton positions the move as a necessary intervention in Australia’s housing affordability crisis, critics argue that both parties should avoid oversimplifying a complex issue and using international students as convenient scapegoats despite making up only 4 per cent of the rental market.
The proposed cap risks deflecting attention away from long-term failures in housing policy, while punishing a group that contributes billions to the Australian economy and enriches university campuses culturally, academically and socially.
Campus Impact: Economic Consequences and Student Life
For universities, the financial impact could be devastating. International education generates more than AUD 50 billion annually, supporting thousands of jobs and funding critical research. A sudden reduction in enrolments threatens not only revenue but the diversity and vibrancy of academic life on campus. Fewer international students could mean fewer resources, larger class sizes, and potential cuts to staff and programs.
From a student’s perspective, the international student cap may potentially reshape the university experience. Domestic students could lose opportunities for cross-cultural collaboration. International students may begin to look elsewhere—Canada, the UK, or New Zealand—for more stable and welcoming study environments. Even current students are left uncertain about post-study work rights, visa renewals, and the public perception of their place in Australia.
A Sector Already Under Pressure
Importantly, the federal government had already signaled a tightening of international student numbers in 2024. Through Ministerial Direction 111, the processing of student visas slowed significantly—particularly for institutions heavily reliant on Chinese enrolments. The result: a sharp drop in visa applications by early 2025, creating concern even before Dutton’s announcement.
What’s emerging is a pattern of policy inconsistency and ambiguity. While universities are urged to support national economic recovery and international engagement, they are simultaneously constrained by unpredictable shifts in migration rules. It raises a question that students across Australia are asking: what kind of education sector does the country want to build?
A Crisis for Uni in the Western World
Harvard reminded the world of a crucial truth in its recent response to the Trump Administration: universities must not only be places of academic freedom, but also of institutional autonomy, global openness, and moral courage.
As Australia debates how many international students it should “allow in,” we should ask ourselves a deeper question—not how many students our universities can accommodate, but how free our universities are to pursue their missions without becoming pawns of short-term politics.
Universities should have the freedom to welcome talent regardless of passport. The freedom to build bridges across borders, not walls around campuses. The freedom to resist populism when it threatens the values of diversity, inclusion, and intellectual exchange.
This moment is not only about immigration numbers. It is a test of what kind of academic society we want to belong to. Do we want a higher education system driven by fear and restriction—or one defined by trust, openness, and courage?