The Australian government has announced a proposed cap of 270,000 international students for 2025, a move to rebalance the higher education sector to pre-pandemic norms. This National Planning Level (NPL) is designed to ensure a fairer distribution of international student enrolments across various educational providers, and the bill is currently pending passage.
Cap on International Students: Key Details
Education Minister Jason Clare revealed that this proposed cap includes approximately 145,000 new starters for publicly funded universities and 95,000 for vocational institutions. For CRICOS RTOs with historically high proportions of international students, this policy aims to encourage demographic diversification.
The cap applies specifically to “new international student commencements,” meaning students starting their first course at a particular provider. Exemptions to this cap include school students, postgraduate research students, those in standalone English language courses, scholars sponsored by the Australian or key partner foreign governments, students under twinning arrangements completing courses offshore, and students from the Pacific and Timor-Leste.
International Student Numbers: Implications for CRICOS RTOs
Recent changes to student migration policies have sparked discussions, with rumours suggesting a 40% cap on international students based on 2019 figures. The proposed limit of 95,000 is close to these speculations.
While this poses challenges for CRICOS RTOs, it also presents opportunities to diversify student populations with local Australian students, improve course offerings, and build strong, reputable programs to attract international interest.
Adapting to Policy Changes
Several significant changes to Australia’s student migration policies, introduced by the Albanese government, are crucial for CRICOS RTOs to note. These include increased student visa fees, stricter financial requirements, and a shorter duration for the Temporary Graduate Visa, aimed at managing 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 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 the prohibition of transitioning 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. In this blog post, we delve deeper into strategies for CRICOS RTOs to effectively navigate the impacts of these policy changes
Strategic Actions for CRICOS RTOs
Diversify Student Demographics
Given the looming 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.
Develop Niche Programs
CRICOS RTOs can stand out by offering niche programs that address specific industry needs or skill shortages. Specialised courses can attract students seeking unique qualifications, helping to build a strong reputation and brand.
You can also provide high-demand units as stand-alone courses. ASQA has confirmed that this can be done using your existing scope without requiring new applications.
Invest in Online and Blended Learning
The rising trend towards online and blended learning models offers CRICOS RTOs the opportunity 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 remain competitive, CRICOS RTOs must prioritise the quality and relevance of their courses. Regularly updating course content to align with 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.
Strengthen Global Partnerships
Expanding and strengthening global partnerships can help CRICOS RTOs maintain international appeal despite a 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 crucial for 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 robust support system can enhance the 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 markets, focusing on digital marketing, and highlighting the unique value 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 participate 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 notify 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 seize this opportunity to enhance their programs, expand their reach, and further integrate into the global education market.
