Australia’s foreign student cap debate continues after setback in parliament 

Australia’s government faces ongoing debate over a proposed cap on foreign student numbers after a controversial bill lost support in Parliament.

The bill, part of the government’s plan to reduce migration, was opposed by universities, which argue it could harm the higher education sector.

Despite the setback, the debate is expected to continue, with uncertainty still surrounding the future of the policy.

According to BBC News, the bill, which aimed to limit international student numbers to 270,000 in 2025, faced strong opposition from most universities. These institutions argued that the cap would harm the higher education sector and Australia’s global reputation as a study destination.

Opposition to the bill from universities 

Reports inform that the government proposed the cap as a way to ensure the sustainability of the international student industry while also addressing housing pressures in the country. It was initially expected to pass easily with the support of the opposition. However, a surprise move by Peter Dutton, leader of the opposition, saw his party oppose the bill, claiming it did not go far enough.

Luke Sheehy, head of Universities Australia, expressed concern that the debate surrounding international students would continue, even if the bill failed to pass. He told BBC News, “I just knew that we would be looking at international students [used] as cannon fodder in a phony war on migration right through to the election now.”

The impact on universities and the industry 

According to BBC, the bill proposed a significant cut to the number of new international student enrolments, which would have been in effect by 2025. The measure, which would have reduced enrolments by around 70,000 compared to 2024, led some universities to preemptively make job cuts and reject student applications. As a result, foreign students began choosing to study in other countries due to growing uncertainty in the sector.

Despite some universities’ apparent relief at the bill’s current setback, Sheehy noted that it had not provided the clarity the sector needed. He emphasized that the uncertainty regarding international student numbers remains a major concern, especially since the industry contributes around A$50 billion to the Australian economy.

Political reactions and the future of the bill 

BBC reports that the proposed legislation, currently under review by the Senate, has not been formally withdrawn. However, without support from the opposition Liberal-National coalition or the Greens, it cannot pass. Peter Dutton criticized the bill, calling it “a dog’s breakfast” and vowed to introduce “deeper cuts” if his coalition wins the upcoming election.

• The Greens party also opposed the bill, with leader Adam Bandt accusing the government of using international students as scapegoats for the housing crisis. “It was dog whistling that shamefully scapegoated international students for the housing crisis they did not cause,” he said.
• In response, the government criticized Dutton for his stance, calling it hypocritical given his previous calls for stricter immigration controls.

With the bill’s future uncertain, the government’s current visa policy, which has been criticized for funneling most international students to a small group of city-based universities, remains in place.

Uncertainty for the higher education sector 

While some parts of the higher education sector welcomed the pause on the bill, reports inform that the overall uncertainty has left universities scrambling as the 2025 academic year approaches. Observers predict that certain institutions, particularly those in regional areas, could face financial strain due to the lack of clarity around student enrolments.

“The most devastating part of this discussion is that we still don’t have a resolution,” Sheehy said. “We’re nowhere closer to providing the certainty, stability and growth the government promised us all those many months ago when they proposed caps.”

As the situation remains unresolved, the future of Australia’s international student sector and its role in the country’s economy is still uncertain.