Australia’s international student policy is facing a major overhaul as political leaders from both major parties vow to cut the number of foreign students entering the country. With a looming housing crisis, the changes are set to impact both the nation’s education system and its economy.
The push for limiting international students comes amid rising housing prices and growing concerns over the availability of rental homes. According to reports, both Prime Minister Anthony Albanese and opposition leader Peter Dutton have pledged to cap the number of international students entering Australia.
The initiative, aimed at curbing demand for housing, may signal a stark shift in the country’s approach to education, which has long been one of its largest export sectors.
International Education: A Vital Economic Pillar
For years, international students have been a crucial source of income for Australia’s universities. These students contribute significantly to the economy, paying higher tuition fees than domestic students and often investing in local communities.
Ali Bajwa, a Pakistani-born academic who has lived in Australia for a decade, emphasises that international students offer far more than they take. “We gain a lot more than we lose to international students,” says Bajwa, now a professor at La Trobe University in Melbourne.
He believes the issue of housing affordability is best addressed through more selective immigration policies, rather than blanket restrictions on students.
Despite the economic importance of international education, there is growing public concern over the effects on the housing market. According to Professor Andrew Norton from Monash Business School, the influx of international students, particularly in recent years following the pandemic, has contributed to rising housing demand.
However, he cautions that the surge is partly an anomaly due to delayed arrivals and should not prompt drastic policy changes. Critics argue that limiting student visas will only serve as a short-term solution to a deeper, more complex housing crisis.
The Housing Crisis: Blame on Students or Broader Issues?
The housing crisis in Australia has reached new heights, with home prices soaring by 45% since 2020. Cities like Sydney have become among the most unaffordable in the world. Local residents, including some concerned voters, view international students as the primary culprits driving up prices.
However, experts argue that the housing shortage is due to a combination of factors, including labor shortages, rising construction costs, and regulatory hurdles, not just the arrival of foreign students.
Local residents have voiced their frustrations, questioning whether Australia is prioritising its own citizens over international newcomers.
“When is one of our governments going to turn up and say, Australia belongs to Australians?” asked one concerned voter. Yet, as Professor Peter Hurley from Victoria University explains, international students have long been treated as an export industry, vital to the country’s economic prosperity, much like Australia’s mining sector.
