Australia recently announced plans to limit the number of international students allowed to study in the country starting from January 1, 2025. The initiative, known as the "National Planning Level" (NPL), will cap the number of new overseas student commencements (NOSC) at 270,000. This plan is still pending parliamentary approval and aims to manage high migration rates that have significantly impacted housing costs and infrastructure.

The cap on international students will be distributed among various education sectors in Australia. Publicly funded universities will be permitted to enroll around 145,000 new international students in 2025, maintaining the intake levels seen in 2023. The Vocational Education and Training (VET) sector will admit about 95,000 new students. Institutions that heavily rely on international students will receive a lower allocation to promote diversification, while other universities and non-university providers will have their intake capped at 30,000. This marks a significant decrease from the 561,000 international students who commenced studies in 2023, making it the lowest intake in the past five years.

The introduction of the cap has sparked strong objections from various Australian universities and education stakeholders. According to the Draft International Education and Skills Strategic Framework released in May, there are concerns that the new cap could negatively affect the job market and might lead to the closure of up to 300 independent colleges. Universities have also criticized the imposition of individual provider limits, suggesting that an overall cap would be a fairer approach. Despite these objections, the government insists that the cap is designed to promote the sustainable growth of the education sector.