People cross a street in the city centre following further easing of coronavirus disease (Covid-19) restrictions in Sydney, Australia, December 10, 2020. (Photo: Reuters)

Under the new policies, international students would need to secure higher ratings on English tests and there would be more scrutiny on a student's second visa application that would prolong their stay.

Prime Minister Anthony Albanese over the weekend said Australia's migration numbers needed to be wound back to a “sustainable level”, adding that "the system is broken."

The decision comes after net immigration was expected to have peaked at a record 510,000 in 2022-23.

Official data showed it was forecast to fall to about a quarter of a million in 2024-25, roughly in line with pre-COVID levels.