Australia has directed its universities to ensure domestic students remain the majority on campus, as the government moves to rebalance enrolments amid rising international admissions. Education Minister Jason Clare said Australian students must constitute more than 50 percent of total enrolments across institutions.
His statement comes amid concerns that international students have exceeded the 50 percent mark at leading universities such as the University of Sydney, Murdoch University, and RMIT. The move is expected to impact global student mobility, particularly for Indian aspirants who form one of the largest groups seeking higher education in Australia.
Saurabh Arora, Founder and CEO of University Living, said the decision marks "a moment of reckoning" for the country's higher education sector. "It reminds us that universities must serve their home students first. At the same time, international students remain a major part of this ecosystem," he told University Living's Research Desk.
According to insights from the University Living Australia Report 2024, Australia hosted around 800,000 international students in 2024, with India accounting for nearly 17 percent. These students significantly contribute to priority sectors such as engineering, IT, business, and healthcare, which continue to face skill shortages. International education generated approximately A$51.5 billion in 2023-24, including A$21.7 billion from tuition and A$29.6 billion from goods and services. Their presence also supports over 250,000 jobs across housing, education, and hospitality.
The directive reflects wider cyclical shifts in Australia's international education policy, shaped by housing pressures, migration trends, and economic needs. Visa regulations and post-study work rules have undergone multiple revisions over the years, as the government attempts to strike a balance between growth and sustainability.
Arora argues that controlling enrolments alone will not solve longstanding issues around student housing and infrastructure. He emphasises the need for long-term capacity planning, more purpose-built accommodation, and policy stability to protect both domestic access and Australia's global standing as a top study destination.
Ultimately, he said, the goal should be to create an equilibrium where local opportunity is protected and international engagement continues to strengthen Australia's global position. Predictability, not restriction, is what will define the success of this phase.
