The Australian government has set a new cap on international students at 270,000 for 2025, aiming to rebalance the higher education landscape to pre-pandemic levels. This National Planning Level (NPL) aims to ensure a more equitable distribution of international enrolments across educational providers.
Education Minister Jason Clare revealed that the cap would consist of around 145,000 new starters for publicly funded universities and 95,000 for vocational institutions. For vocational education and training (VET) providers with historically high proportions of international students, this means a push to diversify their student demographics.
The cap is specifically for “new international student commencements,” meaning students starting their first course at a particular provider. Once a student continues with another course at the same provider, they are not considered new. There are, however, several exemptions to this cap:
- School students
- Postgraduate research students
- Students in standalone English language courses
- Scholars sponsored by the Australian or key partner foreign governments
- Students under twinning arrangements completing courses partially offshore
- Students from the Pacific and Timor-Leste
For full details, read Education Minister Jason Clare’s media release.
Implications for CRICOS RTOs
Recent changes to student migration policies have stirred up discussions, with rumours suggesting a 40% cap on international students based on 2019 figures. However, the confirmed limit of 95,000 is not far off from this speculation.
While this poses challenges for CRICOS RTOs, it also offers opportunities to diversify student populations with local Australian students, improve course offerings, and build strong, reputable programs to attract international interest. This article explores strategies CRICOS RTOs can adopt to manage these policy changes.
Navigating Student Migration Policy Changes
Several significant changes to Australia’s student migration policies have been introduced by the Albanese government, crucial for CRICOS RTOs to note. These include increased student visa fees, stricter financial requirements, and a shorter duration for the Temporary Graduate Visa, aiming to manage the influx of international students while addressing broader immigration and housing issues.
From July 2024, the cost of international student visas more than doubled, ensuring that only genuinely committed students apply. Higher financial proof requirements have been introduced to ensure students can support themselves during their studies without straining national resources.
Another key change is prohibiting the transition from a visitor visa to a student visa while onshore in Australia. This aims to curb the practice of individuals entering on short-term visas and then switching to student visas, thus tightening immigration controls.
Strategic Actions for CRICOS RTOs
Diversify Student Demographics
With the cap on international students, CRICOS RTOs should focus on attracting more domestic students. This can be achieved through scholarships, targeted marketing campaigns, and partnerships with local industries to make vocational education more appealing to local students.
Invest in Online and Blended Learning
The shift towards online and blended learning models has accelerated, and CRICOS RTOs can leverage this trend to reach a broader audience. Offering flexible learning options that combine online and face-to-face components can cater to students who cannot study full-time on campus, including domestic students and working professionals.
Enhance Program Quality and Relevance
To stay competitive, CRICOS RTOs must focus on the quality and relevance of their courses. Regularly updating course content to match industry needs, integrating emerging technologies, and obtaining relevant accreditations are essential. Focusing on employability outcomes and building industry partnerships will position your RTO as a leader in vocational education.
Develop Niche Programs
CRICOS RTOs can differentiate themselves by offering niche programs that address specific industry needs or skill shortages. Such specialised courses can attract students seeking unique qualifications, helping to build a strong reputation and brand.
Strengthen Global Partnerships
Expanding and strengthening global partnerships can help CRICOS RTOs maintain international appeal despite the cap. Collaborations with overseas educational institutions, industry bodies, and government agencies can create pathways for student exchange programs, joint degrees, and offshore course delivery. These partnerships can also help access new markets, reducing reliance on traditional source countries.
Enhance Student Support Services
Providing exceptional student support services is key to attracting and retaining students in a competitive market. CRICOS RTOs should invest in comprehensive support systems that cater to academic, emotional, and financial needs, including career counselling, mental health services, and financial aid options. A strong support system can enhance student experience and lead to higher satisfaction and retention rates.
Adapt Marketing and Recruitment Strategies
In light of the cap, CRICOS RTOs need to reassess their marketing and recruitment strategies. This may involve targeting new geographic regions, focusing on digital marketing, and highlighting the unique value propositions of their courses. Transparent communication with prospective students about the changes and the quality of education offered despite the cap is essential.
Engage with Policy and Advocacy
CRICOS RTOs should actively engage in policy discussions and advocacy to represent their interests in future regulatory decisions. Participation in industry associations, providing feedback to government consultations, and staying informed about policy developments can influence the direction of vocational education in Australia.
Moving Forward
Pending the passage of the bill, the Department of Education will inform providers of their international student allocations for 2025, along with details about the distribution methodology.
Looking ahead, the Australian government’s stance provides a clear path for growth in the vocational education sector. CRICOS RTOs should leverage this opportunity to enhance their programs including their RTO learning materials, expand their reach, and further integrate into the global education market.
