Australia’s Universities See Record Foreign Student Revenue

Australia’s leading universities are benefitting from a sharp rise in international student numbers, generating more than $1 billion in overseas tuition. This is despite the government's crackdown on migration and plans to limit future enrolments. While this spike in revenue provides a short-term benefit, it may be challenged as new policies take full effect in 2025.

International enrolments in 2024 reached a record high. Data shows that over 1 million foreign students were studying across universities, colleges and schools, which represents a 13% increase from the previous year. As a result, Australian universities are experiencing significant growth, although they are preparing for a potential downturn due to tighter federal restrictions.

The University of New South Wales reported a 61% gain in foreign student revenue, rising from $877 million in 2023 to $1.4 billion in 2024. Monash University recorded a 42% increase while Deakin and Curtin each saw growth of around 33%. These increases helped four major universities, including Sydney and Melbourne, surpass the $1 billion mark in international earnings. This was driven by both higher enrolments and rising tuition fees.

A significant policy shift is already underway. The federal government plans to introduce a 270,000-student enrollment cap starting in 2025 and has raised visa application fees to $2,000. In 2024, international student arrivals reached 273,159, just above the cap, but down sharply from 363,931 in 2023. This drop indicates that current measures are already affecting intake.

Universities are now working to adapt their business models as revenue growth is expected to slow. Some institutions are planning to reduce international student numbers by up to 25% in 2025. At the same time, many are focusing on modest increases in total enrolments and shifting their emphasis to postgraduate programs, particularly at top-ranked universities.

Global trends add further uncertainty. Countries such as Canada and the UK are experiencing declines in international student interest due to stricter immigration laws. Australia, despite its own visa challenges, was the only major destination to see an increase in student demand in early 2025 based on data tracked by Studyportals.

Attention is now turning to the federal government, which is being called on to offer clearer direction for 2026 targets. Universities are also working to address broader community concerns including housing shortages. Many believe that coordinated planning and innovative solutions will be essential to maintaining Australia’s leadership in international education over the long term.

Source: Australian Financial Review, Department of Education, Institute of Public Affairs, The PIE News