Despite a contentious law losing momentum this week, Australia’s continuing battle over regulating the number of foreign students continues. The measure, which was a component of the government’s larger migration reduction strategy, suggested capping new enrollments at 270,000 in 2025—a substantial decrease from 2024 figures. Universities fiercely opposed the government’s argument that the cap was required to reduce housing strains and ensure sustainability in the higher education sector, arguing that it would negatively impact the industry’s reputation internationally.

In a shocking change of events, Peter Dutton, the head of Australia’s opposition, declared that his coalition will vote against the bill because it did not adequately handle migration issues. The uncertainty surrounding the business, which is valued at over A$50 billion to the economy, has increased, despite the fact that some colleges voiced relief over the bill’s apparent failure. Universities Australia’s head, Luke Sheehy, stressed that the bill’s rejection puts the industry in a state of uncertainty and provides no comfort. He took issue with the continued use of foreign students as a political pawn in discussions over migration. International students were reportedly considering studying abroad because of the uncertainty, and some universities had already begun to reduce staff and reject applications in preparation for the new laws.

Without the backing of the Greens and opposition, the bill, which is presently in the Senate, is unlikely to succeed. As the 2025 school year draws near, universities face uncertain problems due to the unsettled situation.