Opposition Leader Peter Dutton has unveiled a sweeping plan to slash the number of international students in Australia by 80,000, claiming the move will ease the housing crisis and restore the dream of home ownership for young Australians.
Dutton posted on X, “ANNOUNCED: We will cap international student numbers and reduce permanent migration by 25 percent – freeing up nearly 40,000 homes in the first year.”
This was a major policy announcement in the marginal Melbourne seat of McEwen, as Dutton promised to introduce a hard cap on student visas and triple visa fees for some university applicants. The proposed cap will limit new overseas student commencements at public universities to 115,000 per year and to 125,000 across private and vocational education sectors.
The Coalition leader singled out Australia’s elite Group of Eight universities, including Sydney and Melbourne Universities, for admitting “excessive numbers” of foreign students, and revealed visa fees for these institutions will jump from $1,600 to $5,000. Other students will face a hike to $2,500, and an additional $2,500 will be charged for switching education providers.
“My absolute priority is to get this housing mess sorted out,” Dutton said.
“Over the last three years, Anthony Albanese’s government hasn’t delivered a single additional new home under its failed housing policies.”
Dutton criticised the Government’s migration targets, warning the arrival of 1.8 million new migrants over five years was worsening the housing shortage, especially in capital cities. Since the last election, he said, the number of international students in Australia had surged by 65 per cent—from 520,000 to more than 850,000—while national median rents have jumped 25 per cent.
“In some courses, up to 80 per cent of students are international. It’s unsustainable,” he argued.
“When you’ve got 42 international students to every new dwelling being built, it doesn’t stack up.”
Under the Coalition plan, the cap would reduce international student intake by 30,000 annually compared to Labor’s current policies.
Dutton also pledged a $5 billion infrastructure fund to unlock 500,000 homes and support stalled housing projects. Additionally, first home buyers would be able to access up to $50,000 of their superannuation for a home deposit.
However, critics argue international students have been unfairly scapegoated. Research from the University of South Australia found no significant link between international student numbers and rental prices, based on data from 2017 to 2024.
The Department of Education also notes only 50 per cent of international students rely on the private rental market, with the remainder living with family, in student accommodation, or homestays.
Universities and education bodies are likely to oppose the policy, with international education contributing over $51 billion to the Australian economy in 2023–24.
Dutton acknowledged the economic value of the sector but insisted,
“This is about priorities. We need to make sure young Australians can afford a home.”
The Coalition also plans to review the Temporary Graduate Visa (subclass 485), which they claim is being used as a backdoor to permanent residency and employment in Australia.
While the proposed cap is expected to hit metropolitan universities hardest, Dutton said the Coalition would support regional universities and tailor policy settings to ensure balanced growth across the sector.
The policy is a centrepiece of the Coalition’s housing strategy heading into the May 3 election, with Dutton presenting migration reform as essential to solving Australia’s housing and rental pressures.
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