‘Absolute priority’: Peter Dutton to slash number of international students under housing crisis plan

Peter Dutton has vowed to slash the number of international students in Australia by 80,000 in a move designed to ease the housing crisis.

Peter Dutton has vowed to slash the number of international students in Australia by 80,000 people in a move designed to ease the housing crisis.

Vowing to place a new cap on the number of overseas students in Australia, Mr Dutton is set to argue that rising numbers of overseas students is contributing to the housing crisis.

He will also triple the cost of the student visa application charge to $5000 for Group of Eight universities including, Sydney University and Melbourne University.

It will increase from $1600 to $2500 for remaining international students.

A new charge of $2500 will be introduced for students who wish to change education providers.

Mr Dutton will tell voters today that while Anthony Albanese plans to bring in 1.8 million new migrants over five years, Labor’s housing policies are yet to deliver a single additional new home.

He warned the number of international students studying in Australia had soared by 65 per cent, from nearly 520,000 international students in the year to the last election, to more than 850,000 today.

In some courses at Australian universities, up to 80 per cent of students are international students – with the Coalition planning a new cap.

The cap is not finalised but is likely to fall at around 25 per cent of the student population.

“My absolute priority is to get this housing mess sorted out,” Mr Dutton said.

Peter Dutton has vowed to slash the number of international students in Australia by 80,000

“I don’t want young Australians locked out of the property market – or having to rely on the bank of mum and dad. I want to see more Australians in homes.

“Over the last three years, Anthony Albanese’s government hasn’t delivered a single new additional new home built under its failed housing policies. Under Labor, migration has, and will continue to put pressure on housing, infrastructure and services.

“A Coalition government will restore the dream of home ownership by cutting migration and starting a house building boom.”

A new cap of 25 per cent would have a huge impact at some universities.

At Sydney University, around half of all students are now from overseas.

Peter Dutton wants to slash the number of new international students commencing at public universities by at least 30,000 per year compared with Labor.

Under the plan, there will be at most 115,000 overseas student commencements each year at publicly-funded universities and at most, 125,000 in the VET, private university and non-university higher education sectors.

Around half of all Sydney University students are now from overseas. Picture: NCA NewsWire/Jeremy Piper

Based on 2023 enrolment data, this is expected to overwhelmingly affect metropolitan rather than regional universities.

The reduction will particularly affect the Group of Eight universities, “which have admitted excessive numbers of international students”.

Mr Dutton will also conduct a rapid review of Temporary Graduate Visas (subclass 485) to address the misuse of post-study work arrangements as a way to gain access to the Australian labour market and as a pathway to permanent migration.

Since the last election, the national median rent has surged by 25 per cent, jumping from $512 per week in May 2022 to a $638 today.

But opinion is divided over whether international students are really to blame.

The Department of Education estimates around 50 per cent of all international students reside in the private rental market, 25 per cent live with parents or relatives, only 20 per cent are in student accommodation, and a further three per cent use homestay arrangements.

Some researchers argue overseas students have been “thrown under the bus” and unfairly blamed for the rental crisis.

Prime Minister Anthony Albanese plans to bring in 1.8 million new migrants over five years. Picture: Jason Edwards/NewsWire

Researchers at the University of South Australia examined longitudinal data from government departments and the Australian Bureau of Statistics at 76 time points between 2017 and 2024.

They found no link between international student numbers and the cost of rent.

“Post Covid, throughout Australia, and in all the capital cities we researched, there was no statistically significant correlation between international student numbers and the rental costs,” lead researcher Michael Mu said.

Housing and migration

Slashing the migration program is the centrepiece of Mr Dutton’s new plan to tackle the housing crisis – along with allowing workers to cash in their superannuation for a $50,000 deposit top-up.

“I don’t want young Australians locked out of the property market – or having to rely on the bank of mum and dad,” Mr Dutton said.

“I want to see fewer Australians homeless and more Australians in homes.

“Under Labor, migration will continue to put pressure on housing, infrastructure, and services.

“But under the Coalition, we will cut the migration intake to free up housing and restore the great Australian dream of home ownership.

Peter Dutton says tackling the housing crisis is his top priority. Picture: iStock

“We will cut the permanent migration program by 25 per cent. We will ban foreign investors and temporary residents from purchasing existing Australian homes for two years.

“We will set stricter caps on foreign students to relieve stress on rental markets.”

Mr Dutton said a Liberal Government would also invest $5 billion in essential infrastructure to get stalled housing projects off the ground and unlock 500,000 homes.

“And we will allow first home buyers to access up to $50,000 of their super for a home deposit,’’ he said.