Australia “open for business” – but integrity comes first, says Hill

Hill’s address at the 2025 Australia International Education Conference (AIEC) comes one day after public universities received their new overseas student commencements (NOSC) for 2026 under the government’s National Planning Level (NPL).

The NPL limits how many international students institutions can enroll as the government moves to manage growth in the sector.

Following the increase in the NPL from 270,000 to 295,000 student places, all universities have received their 2026 allocations at least equal to 2025 levels, with most seeing an increase.

“Australia is open for business, we welcome students – genuine students – but also for providers to plan their operations,” said Hill.

“Growth has moderated with student visa lodgements down by over 26% last year, and commencements down on last year by 16%. This has allowed the 9% increase to the National Planning Level, which remains well below the post-COVID peak,” explained Hill.

Despite this progress toward the government’s goal of sustainable growth, the assistant minister said more work is needed to improve the “composition, distribution and integrity” of the overall student cohort.

He noted that five universities chose not to apply for growth, while 32 requested increases in allocations, which were determined based on each institution’s performance against government priorities – new housing, engagement with Southeast Asia, and market diversification.

“Regional universities have secured strong growth, consistent with the government’s policies to share the benefits of international education. Charles Sturt, Federation, Newcastle and Charles Darwin universities have secured the largest proportional growth in their allocations,” said Hill.

“31 of the 32 institutions that sought growth have been successful. One institution received no growth at this time pending further discussions about realistic plans for market diversification, genuine commitment to south-east Asian engagement and evidence of appropriate investment in new housing.”

Hill also revealed he has written to several institutions, raising concerns about aspects of their policy settings.

“Please understand, the government is serious about ensuring Australia’s international education sector operates sustainably and in Australia’s national interest,” the assistant minister urged the Canberra audience.

Please understand, the government is serious about ensuring Australia’s international education sector operates sustainably and in Australia’s national interest
_{Julian Hill, assistant minister for international education}

Hill flagged a new ministerial direction relating to visa processing, set to take effect in mid-November, with details still to be finalised and published.

Under the current ministerial direction 111, departmental officials prioritise processing student visas for each provider until they reach 80% of their NOSC allocation. The “key principles” of MD 111 are expected to continue to underpin the new ministerial directive, a Home Affairs representative later suggested.

Elsewhere, Hill said that one natural outcome of managed onshore growth is an increased incentive for universities to expand offshore. “This is welcome, as transnational delivery and partnerships can help fulfil Australia’s policy goals, supporting our neighbours while boosting national wealth and soft power.”

He noted that Australian branch campuses in Southeast Asia already educate over 35,000 students, and that last year saw the highest number of new branch campuses established in a single year since the first was opened more than three decades ago.

“Our partnerships with China continue, and there are enormous opportunities in India. Over 1 million Indians turn 18 every month.”

Hill also pointed to recent legislation tabled by the Albanese government, with significant reforms relating to education agents, among other changes. If passed, the bill will change the definition of an education agent and also ban onshore agent commissions.

“Unfortunately, we have reached a situation where commissions for onshore transfers have corrupted the market and action is needed. Agents will continue to have their place, and the government has committed to further considering the need for agent regulation.”

The sector also awaits the government’s strategic framework, which it said will provide a “forward-looking roadmap” – establishing national priorities and actions to signal where government seeks to work with the sector and to guide collaboration.

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