19 November 2024 Update: Cap on International Students Faces Strong Opposition
Since the Australian government announced its proposed cap of 270,000 new international student enrolments for 2025, the plan has faced growing criticism. Recent developments suggest the cap may not proceed as planned.
Political Roadblocks
The Coalition and the Greens have declared their intent to oppose the bill, citing concerns about its impact on the education sector and the economy. This opposition significantly reduces the likelihood of the cap being implemented by its proposed start date of 1 January 2025.
The Government’s Position
Education Minister Jason Clare continues to advocate for the cap despite the pushback. He argues that it is essential for controlling migration, addressing housing shortages, and tackling issues with low-quality education providers. Without the cap, the government fears these challenges will persist.
What Happens Next?
If the bill fails, Ministerial Direction 107—designed to tighten visa requirements for students from specific providers—will remain in effect. This directive has already led to a notable drop in granted student visas, down from over 577,000 in 2022-23 to about 376,000 in 2023-24.
Key Takeaway
The future of international student enrolments in Australia remains uncertain. While the government is committed to reform, opposition from major political groups suggests the proposed cap may not go ahead. Stakeholders should stay informed as this issue continues to evolve.
JUST IN: Department of Education Announces Proposed Cap on International Students
The Australian government has announced a proposed 270,000 cap on international students in 2025, bringing numbers back to pre-pandemic levels. The new National Planning Level (NPL) aims to redistribute international enrolments across the higher education landscape and create a system that benefits education providers equally.
Education Minister Jason Clare stated that the proposed cap on international students would be made up of approximately 145,000 new starters for publicly funded universities and 95,000 for vocational institutions in 2025. VET providers with historically higher proportions of international students will have reduced enrolment allocations, encouraging them to diversify their student bodies.
The cap is limited to ‘new international student commencements’, referring to students starting their first course at a particular provider. Once a student takes another course with the same provider, they are no longer considered a new student. The following are exemptions to the cap:
- School students
- Postgraduate research students
- Students enrolled in standalone English language courses
- Scholars sponsored by the Australian government or key partner foreign governments
- Students under twinning arrangements where courses are partly completed offshore
- Students from the Pacific and Timor-Leste
For more information, you can read Education Minister Jason Clare’s full media release here.
What These Proposed Rules for International Students in Australia Mean for CRICOS RTOs
In light of recent student migration policy changes, the rumour mill had gone into overdrive with speculations of a 40% cap on international students, derived from 2019 (which was 225,375 according to NCVER). Education Minister Jason Clare refuted the cap, but the confirmed limit (95,000) is not far off from initial speculation (40% of 225,375 enrolments in 2019 is 90,150).
While these changes create a challenge for CRICOS RTOs, they also present an opportunity to diversify student bodies with local Australian students, emphasise the quality and value of course offerings, and build strong, reputable programs that draw international interest. In this article, we go into more detail on how CRICOS RTOs can manage the effects of these policy changes.
Understanding Student Migration Policy Changes
This year, the Albanese government has introduced several significant changes to Australia’s student migration policies, which are important for CRICOS RTOs to consider. These changes include increases in student visa fees, stricter financial requirements for visa applicants, and the shortening of the Temporary Graduate Visa, all aimed at managing the influx of international students in Australia while addressing broader immigration and housing concerns.
From July 2024, the cost of international student visas more than doubled, reflecting the government’s intention to ensure that only genuinely committed students apply. Additionally, the requirement for higher financial proof before gaining a student visa was introduced, intended to ensure that students can support themselves during their studies without straining national resources.
Another notable change is the prohibition of transitioning from a visitor visa to a student visa while onshore in Australia. This move aims to curb instances where individuals enter the country on short-term visas and then shift to student visas, thereby tightening immigration controls.
What CRICOS RTOs Can Do Moving Forward
Diversify Student Demographics
With a cap on international students on the horizon, CRICOS RTOs should aim to attract more domestic students. This will balance the student population and reduce the impact of the cap. Strategies may include offering scholarships, tailored marketing campaigns, and partnerships with local industries to enhance the appeal of vocational education to local students.
Enhance Program Quality and Relevance
To stay competitive, CRICOS RTOs need to focus on course quality and relevance. Your organisation can do this by regularly updating course content to match industry needs, using emerging technologies in training, and obtaining relevant accreditations. Focusing on employability outcomes and building industry partnerships will also position your RTO as a domestic and international leader in vocational education.
Develop Niche Programs
CRICOS RTOs can stand out by developing niche programs that address specific industry needs or skill shortages. By offering specialised courses that are not widely available elsewhere, your RTO can attract students looking for specialised qualifications. Niche programs can also help you build a strong reputation and brand, making your RTO a preferred choice for students with specific career goals.
You can offer high-demand units as stand-alone courses. ASQA has confirmed that this can be done using your existing scope without needing new applications. This blog over at eSkilled shows you some single unit courses your RTO can offer for maximum impact.
Strengthen Global Partnerships
Expanding and strengthening global partnerships can help CRICOS RTOs maintain their international appeal despite the cap. Collaborations with overseas educational institutions, industry bodies, and government agencies can create pathways for student exchange programs, joint degrees, and offshore delivery of courses. These partnerships can also help RTOs access new markets and reduce reliance on traditional source countries.
Invest in Online and Blended Learning
The shift towards online and blended learning models has accelerated in recent years, and CRICOS RTOs can leverage this trend to reach a broader audience. By offering flexible learning options that combine online and face-to-face components, RTOs can cater to the needs of students who may not be able to study full-time on campus. This approach can also appeal to domestic students and working professionals looking to upskill or reskill.
Emphasise Student Support Services
Providing exceptional student support services is key to attracting and retaining students in a competitive market. CRICOS RTOs should invest in comprehensive support systems that cater to the academic, emotional, and financial needs of their students. This includes career counselling, mental health services, and financial aid options. A strong support system can enhance the student experience and lead to higher satisfaction and retention rates.
Adapt Marketing and Recruitment Strategies
In light of the cap, CRICOS RTOs will need to reassess and adapt their marketing and recruitment strategies. This may involve targeting new geographic regions, focusing on digital marketing channels, and highlighting the unique value propositions of their courses. It is also essential to communicate transparently with prospective students about the changes and how the RTO is positioned to offer a high-quality education experience despite the cap.
Engage with Policy and Advocacy
Finally, CRICOS RTOs should actively engage with policy discussions and advocacy efforts to ensure their interests are represented in future regulatory decisions. By participating in industry associations, providing feedback to government consultations, and staying informed about policy developments, RTOs can influence the direction of vocational education in Australia and advocate for fair and supportive policies.
The Path Forward
Subject to the passage of the bill, the Department of Education will be informing providers of their international student allocations for 2025 along with further details about the distribution methodology.
Looking ahead, the Australian government’s stance provides a clear path for growth in the vocational education sector. CRICOS RTOs should leverage this opportunity to enhance their programs, expand their reach, and further integrate into the global education market.
