Keystone logo

Australia to Introduce New Regulations for International Enrollments

Learn about Australia's new education rules to cap international enrollments and how it may affect you.

Oct 21, 2024
  • News
Australia to Introduce New Regulations for International Enrollments

πŸ“Œ Key takeaways


Australia is introducing new reforms to improve the integrity of its international education sector, including a cap on student enrollments starting in 2025, but there are mixed reactions regarding potential job losses and timing concerns.

Australia is set to introduce major reforms aimed at the size, quality, and transparency of its international education sector. The Education and Employment Legislation Committee released a report on the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 that proposes stricter regulations for education providers and agents, addressing integrity issues that have affected international students in recent years.

These reforms cap the number of international enrollments but also protect students from unethical practices, ensure they receive the education they expect, and reinforce Australia's reputation as a top destination for education.

Curious to learn more about Australia?

Check out our guide on every step of studying in Australia!

A cap on international student enrollments

A significant change proposed by the bill is the introduction of a cap on international student enrollments, most likely starting in 2025. The enrollment limit is set at 270,000 students, distributed across higher education and vocational education (VET).

This cap is designed to manage the increasing number of students while ensuring that essential resources such as accommodation and student support services remain sustainable:

"The Committee recognizes that the international education sector must be managed in a way that allows it to grow sustainably over time, delivers the greatest benefit to Australia, and maintains its social license from the Australian people."

For reference, in the year-to-date July 2024, there were 943,977 international student enrollments in Australia, according to the Australian Department of Education report.

Of the 270,000 places, 145,000 will be allocated to public universities, 30,000 to private institutions and non-university providers, and 95,000 to VET providers. However, the Senate Committee recommended removing course-level caps for public institutions, giving them more flexibility while still adhering to institutional-wide caps.

Mixed reactions from students and universities

While the cap on international student enrollments is designed to manage growth and protect resources, it has sparked mixed reactions.

Supporters view it as necessary for maintaining quality. For example, the UTS Students' Association pointed out that by implementing enrolment limits, universities could "better allocate resources, maintain high standards of teaching, and ensure that students can complete their studies as planned". Similarly, Turner English College strongly supported the idea of setting enrolment limits to "create sustainable and stable education providers".

However, concerns have been raised about unintended consequences, such as potential job losses and damaging Australia's reputation. The University of Sydney commissioned preliminary economic modeling to demonstrate the impacts of a 30% reduction in international students from 2025 to 2023:

  • $4.1 billion in lost GDP to the Australian economy and 21,922 jobs (full-time equivalent (FTE), including direct and indirect flow-on jobs)
  • $1.1 billion in lost GSP to the New South Wales economy and 5,612 jobs
  • The impact per 1 percentage point cut in students would be a loss of $138 million in GDP and 731 jobs
  • The impact per 1,000 students would be a loss of $65 million in GDP and 344 jobs

Many universities are worried that the timing of the cap's implementation in 2025 may disrupt current processes, as some institutions are already making offers for that year. Further consultations are expected to address these concerns.

More oversight for education agents

Education agents, who assist over 70% of international students with their visa and enrollment processes, will face greater scrutiny under the new regulations. The bill introduces more transparency in how agents operate, requiring education providers to report detailed data on agent commissions and student transfers.

This increased oversight will help protect students from misleading practices and ensure that agents act in their client's best interests.

Ministerial powers to improve course quality

The bill also grants the Minister for Education authority to suspend or cancel courses that don't meet Australia's high standards or align with its future skills needs. This reform is a safeguard to ensure that international students are enrolled in high-quality programs that provide real value.

Courses found to offer little value or that consistently fail to meet regulatory requirements could be suspended, protecting students from subpar education.

What's next?


While these changes are slated to take effect in 2025, the timeline is still tentative as the bill undergoes further consultations and potential amendments. Education providers may require additional time to adapt to the new rules, and adjustments might still be made based on sector feedback.

For international students, these reforms represent a step toward ensuring a safer, more transparent education system in Australia, although the spots will be limited.

While the specifics of the reforms are still being finalized, Australia is clearly committed to managing and safeguarding its international education sector and maintaining its global reputation for academic excellence.

Tetiana Sokolova

Author

With a Bachelor's degree in System Analysis and Applied Statistics, Tetiana brings a strong analytical foundation to her role as a Content Editor at Keystone Education Group. She is dedicated to researching, producing, and refining content to support students worldwide in their education journey, applying her technical expertise and analytical skills to ensure accuracy and relevance.