Australia Proposes Cap on International Students and Higher Visa Fees for 2025

Australia's Opposition has proposed major reforms to limit international student numbers, raise visa fees, and restrict post-study work rights. The plan includes a 240,000 student cap and a $5,000 visa fee for top universities.

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Breaking News for Aspiring Students: In a move that could reshape Australia’s international education landscape, Opposition Leader Peter Dutton has unveiled a bold proposal to impose a cap on international students, significantly limiting the number of foreign entrants into the country.

The Coalition’s policy is aimed at addressing housing shortages, sparking debate and raising questions for those considering studying Down Under.

Key Proposal: Lower Caps, Higher Fees

Under the Coalition’s plan, a strict cap of 240,000 international students per year would be enforced, down from the current Labor government’s cap of 270,000 set for 2025. This would mark a notable reduction from the record-high student numbers expected to hit over 850,000 this year.

Key changes proposed include:

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  • Student Enrolment Cap: Public universities would be allowed to enrol international students in only 25% of their total student body.
  • Commencements Limit: A ceiling of 115,000 new international students annually at public universities.
  • Private and VET Sectors: Up to 125,000 students allowed in private institutions and vocational education and training (VET) courses.

Visa Fee Hikes for Elite Universities

One of the most controversial measures involves raising student visa application fees, especially for top-tier institutions:

  • $5,000 for Group of Eight universities, including institutions like the University of Melbourne and the University of Sydney.
  • $2,500 for all other international student applicants.

The Coalition argues that these changes will prevent universities from over-relying on foreign enrolments for funding and help manage domestic housing demand.

Reforms to Graduate Visas Under Review

The Coalition also plans a major review of the Temporary Graduate Visa, which allows international students to remain in Australia after completing their studies. Officials argue that many international students use the visa as a backdoor to access the Australian labour market and gain permanent residency.

The review aims to:

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  • Curbing visa misuse
  • Re-align graduate visas with genuine skills shortages
  • Restrict long-term pathways to permanent residency

A Pushback from the Education Sector

Leaders in Australia’s higher education sector have pushed back strongly. Many universities and education bodies have labelled the proposal “Trump-like”, criticizing it as politically driven and harmful to Australia’s global reputation in international education.

The education industry is concerned about:

  • Reduced diversity on campuses
  • Financial losses from fewer enrolments
  • Damage to Australia’s standing as a preferred study destination

Why the Coalition Wants to Cut Numbers

Peter Dutton says the crackdown aims to address housing affordability and relieve pressure on infrastructure. As more migrants and students enter Australia, competition for housing has surged, especially in major cities like Sydney and Melbourne.

The Coalition argues that cutting back on international student numbers would ease the pressure on rental markets and improve home ownership prospects for young Australians.

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What’s Next?

With the federal election set for May 3, the Coalition has promised to release more detailed immigration policy plans soon. Until then, international students and education providers remain in limbo.

Prospective students are advised to:

  • Apply early before any policy changes take effect
  • Consider alternative destinations or Australian institutions with lower caps
  • Stay informed through official immigration and university channels

Conclusion

Australia’s opposition is proposing a hard reset on the country’s international student policy. With stricter caps, soaring visa fees, and post-study visa restrictions on the horizon, students planning to study in Australia in 2025 and beyond should prepare for significant changes. Stay updated as more details emerge ahead of the federal election.


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Manish Khandelwal
Manish Khandelwal

Manish Khandelwal, a travel-tech enthusiast with over a decade of experience in the travel industry. Founder and Editor-in-Chief of Travelobiz.com, he's passionate about writing.

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