Australia Caps Foreign Students: What It Means For Indians Eyeing Global Degrees

Study Abroad Impact: The policy is likely to influence global student mobility, especially among Indian aspirants — one of the largest groups pursuing higher education opportunities in Australia.

Australia has instructed its universities to maintain a majority of domestic students on campus, as the government seeks to rebalance enrolments amid a surge in international admissions. Education Minister Jason Clare announced that Australian students must make up over 50 percent of total enrolments across all higher education institutions.

The directive follows growing concern that international students have surpassed the 50 percent mark at leading universities including the University of Sydney, Murdoch University, and RMIT. The move is expected to influence global student mobility, especially among Indian aspirants — one of the largest cohorts pursuing higher education in Australia.

Saurabh Arora, Founder and CEO of University Living, described the move as “a moment of reckoning” for the nation’s higher education system. “It reinforces that universities exist to serve their home students first, yet international learners remain an essential part of this ecosystem,” he told University Living’s Research Desk.

As per the University Living Australia Report 2024, the country hosted nearly 800,000 international students in 2024, with Indians making up around 17 percent. These students play a crucial role in sectors like engineering, IT, business, and healthcare — areas still grappling with skill shortages. International education generated about A$51.5 billion in 2023–24, including A$21.7 billion from tuition and A$29.6 billion from goods and services, while supporting over 250,000 jobs across housing, education, and hospitality.

The policy reflects a broader shift in Australia’s approach to international education, shaped by housing shortages, migration dynamics, and economic priorities. Visa policies and post-study work rules have repeatedly evolved as the government works to balance expansion with sustainability.

Arora believes enrolment caps alone won’t address deeper issues such as housing and infrastructure shortages. He calls for long-term planning, more purpose-built student accommodation, and consistent policymaking to protect domestic access while preserving Australia’s global reputation as a premier education hub.

Ultimately, he said, the goal should be to maintain a balance that safeguards local opportunity while strengthening international engagement. “Predictability, not restriction, will determine how successfully Australia navigates this next phase.”