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The Australian government has announced Student Visa caps commencing 2025. The Australian government in a release yesterday stated “Subject to the passage of legislation before the Parliament, [the government] will set a National Planning Level (NPL) for new international student commencements of 270,000 for calendar year 2025.”

The new cap has been referred to as the National Planning Level and will affect all higher education and VET providers. Higher degree by research programs, standalone language training centers and schools will, however, be exempt from the cap.

The cap will be distributed across the higher education and VET sector with the aim to limit entry into Australia to pre-pandemic levels an d manage growth in the future better.

How the cap will be distributed:

145,000 international commencements will be distributed among all public universities in 2025. This, the Australian government says, is roughly equivalent to the international student entries in 2023. Each institution will receive an individual cap in an International Student Profile (ISP). Universities with higher levels of international students will receive a lower cap and universities with lower international student concentrations will receive a higher cap.

30,000 international commencements other universities and non-university providers. This includes university colleges, standalone colleges and pathway programs. The rest of the seats, 95,000 in total, will go to the VET sector.

Risk Levels Replaced by NPL

The National Planning Level will replace Ministerial Directive 107. Ministerial directive classified Australian Universities into 3 risk levels with preferential treatment reserved for ‘low-risk’ universities. Minister of Education Jason Clare stated that this would be beneficial for many universities because universities at level 2 and level 3 in the risk assessment levels experienced longer visa wait times which will not be the case in 2025.

Higher Education Institutions React with Outrage

Universities across Australia are united in their condemnation of the cap. Universities Australia Chair Professor David Lloyd says “Even without legislated powers to limit international student numbers, the Government has already taken a sledgehammer to the international education sector.” This is understandable in light of the fact that the money paid by international students goes a long way in sustaining the Australian higher education sector.

Group of Eight (Go8) Chief Executive Vicki Thomson stated “Today the Federal Government announced that it intends recklessly to proceed with international student caps – introducing cuts to Go8 members who do the heavy lifting in research, education as well as underpinning Australia’s global reputation as a high-quality international education provider”.

The government has an ambitious target of doubling New Zealand’s total export earnings in the next ten years and education is slated to play an important part in this endeavor. The estimated economic contribution of the New Zealand education sector was NZ$ 2.2 Billion in 2023 and the government wants to increase it by 100% by 2027 to NZ$ 4.4 Billion by 2027.

Education New Zealand Chief Executive Dr. Linda Sissons talked about the strategy to do so and highlighted the role of key markets like India, Vietnam, the Philippines, Thailand and Japan in achieving this target. “We need to start now to grow awareness of New Zealand in these markets if we are to achieve our growth targets,” said Dr Sissons. “Moving forward, we will continue to seek growth through diversifying markets while maintaining our strength in traditional markets such as China and India.”

All this occurred at the New Zealand International Education Conference (NZIEC) in Wellington this week, as officials began to lay out a plan for a new strategy to enhance New Zealand’s profile in the international education ecosystem. ENZ Director, Marketing and Brand Adrian Hirst said “In a sea of [several international destinations], it’s increasingly difficult to stand out for students and for student families, How do we differentiate ourselves? If we don’t differentiate ourselves, we run the risk of being totally ignored. We need something to hang our hat on. We need something that resonates with the core needs and motivations of our audience, and we need to look at differentiating in a way that adds quality and value to our industry.”

This announcement is sure to generate a positive buzz in the international education sector because, though small, higher education in New Zealand is world class and they are global leaders in education for renewable energy, agriculture and aerospace.

The Federal Ministry of Education and Research in Germany has announced an increase in proof of funds for international students for the 2024/2025 Academic year. For the last academic year (2023/2024) the requirement had been € 11,208 and for the new academic year 2024/2025 the requirement will be € 11,904. This represents an increase of 6% over last year’s requirement.

This follows announcements by Canada and Australia that the proof of funds required was doubled and increased by 20% respectively by the two countries. In contrast, the increase announced by Germany is marginal and will not generate the backlash that Australia and Canada are already experiencing. Enrollment in German institutions is increasing and the announced increase should have little effect on enrollment numbers.

Recently appointed Secretary of State for Education Bridget Phillipson, has said that international students are always welcome to the UK and has affirmed that the graduate route shall continue. Appointed by the newly-elected UK government under Keith Starmer, Secretary Phillipson said “Be in no doubt: international students are welcome in the UK. This new government values their contribution – to our universities, to our communities, to our country.”

She also added: “Under this new government, opportunity is for everyone. And our international partnerships are central to this drive to spread opportunity far and wide. The more we work together, the more progress we will see in the world – partners in the push for better.”

There was another positive takeaway for international students with regard to the graduate route. Secretary Phillipson reaffirmed that the graduate route is here to stay- for now. “These people are brave. They move to a new culture, far away from their homes and their families.  They take a leap of faith, hoping to develop new skills and chase new horizons. And I am enormously proud that so many want to take that leap here in the UK. And we will do everything we can to help them succeed. That’s why we offer the opportunity to remain in the UK on a graduate visa for two years after their studies end – or three for PhDs – to work, to live, and to contribute”.

These pronouncements were made at the Education Embassy Conference in London on Tuesday 23 July and have sent a positive message to both prospective international students and the international community at large.  The UK has always been a popular study destination for international students and, in light of the announcements by the newly-elected Secretary, shall remain so at least for the time being.