A Senate inquiry this week will examine the Australian government’s controversial decision to cap international student numbers starting next year. University research predicts that these caps will lead to significant revenue and job losses, affecting the broader economy. My report for ANU’s Migration Hub argues that the caps are problematic, especially given recent migration policy changes already reducing student arrivals. The Albanese government initially supported international education recovery, clearing visa backlogs and extending post-graduation work rights. However, rising rents and reduced accommodation led to a policy shift, culminating in the cap announcement before the May budget.