How will Labor’s ‘soft caps’ on international students work?

Student visas will likely be slashed further under Albanese’s plan to ‘set limits on enrolments’ for higher education providers to promote ‘sustainable growth’ in the embattled sector.

The overall target number of international student enrolments has not been revealed. Picture: News Corp

The number of international students granted a visa to come to Australia could be further slashed under a Albanese government plan to introduce caps on overseas student enrolments for universities and colleges.

Labor will introduce legislation later this week that will allow the government to “set limits on enrolments” for higher education providers to promote “sustainable growth” in the embattled sector.

The overall target number of international student enrolments has not been revealed, but a draft framework released by the government on Saturday in the first step of its consultation process indicates caps could also be allocated based on the course and location.

The 41-page document outlining the government’s starting point for how caps could be imposed on the $47bn industry which includes 1400 universities, private colleges and vocational education and training providers is light on details and poses many questions.

The draft document also flagged the government could choose to increase a higher education providers’ allocation if they constructed purpose-built accommodation or enrolled students in study areas where there is a skills shortage.

“Government will establish a process to set international student profiles with individual universities that limit how many international students can be enrolled over a set time period, supported by changes to the (Education Services for Overseas Students) Act,” the framework said.

“A range of considerations will influence the profiles allocated to universities, including the university’s supply of purpose-built student accommodation, and the contribution of enrolments to meeting Australia’s skills needs.”

The draft International Education and Skills Strategic Framework acknowledged the potential impact of caps on students from Australia’s biggest markets China and India, making several references to the need to increase “diversity” across the sector. The caps will be set for each institution through agreements or “mission-based compacts” made between universities and the Australian government.

Home Affairs Minister Clare O’Neil changed the way student visas are processed to prioritise applications for universities with a strong track record of recruiting ‘genuine students’. Picture: NCA NewsWire / Martin Ollman

Higher education providers have been smashed by a flurry of changes to visa requirements and processing aimed at cutting the number of international students arriving in the country, as the government seeks to halve its net migration to about 250,000.

International student numbers soared in the wake of the covid pandemic as the government sought to plug crippling workforce shortages and stimulate the economy, leading to a record 577,295 study visas being granted in 2022-23.

However, in response to mounting political pressure to curb net migration from its peak of 510,000 last year the government has sought to wind back overseas arrivals, amid accusations international students were placing additional stress on the housing market.

Concerns have also emerged about the prevalence of “dodgy” tertiary providers especially in the VET sector exploiting international students and promoting the use of the visa category to work in low-skill jobs rather than study.

“In recent years, and most acutely since the post-pandemic return of international students, un-managed growth in international education has seen a rise in integrity issues and threatened the sector’s social licence and Australia’s reputation,” the framework said.

Home Affairs Minister Clare O’Neil changed the way student visas are processed to prioritise applications for universities with a strong track record of recruiting “genuine students”, meaning students whose primary focus is to study.

The English requirements have also been increased, a new genuine student requirement targeted at weeding out “non-genuine” applicants introduced and the overseas students will be required to have $29,710 in the bank when they arrive from May.

The announcement comes amid a global push to cut student numbers with Canada introducing “hard caps” on international students designed to cut overseas student numbers by 35 per cent and the UK axing student visas for partners and family members.