Australia raises international student enrolment cap to 295k

The national planning level – currently set at 270,000 as part of Ministerial Direction 111 – will go up to 295,000 in 2026. While this is an increase on this year’s numbers, it is still 8% below the “immediate post-Covid peak”, the Australian government noted.

And from next year, international students moving from Australian secondary schools to publicly funded universities or from affiliated pathway providers or TAFE institutions will not be subject to the national planning level.

The national planning level is a system where different institutions in Australia have different limits to the number of international students they are allowed to enrol each year as the Albanese government works to ensure that the international education sector remains sustainable.

Publicly funded universities are currently limited to a total 145,000 new enrolments, VET providers are capped at a total of 95,000 and private universities at 30,000 – although each different provider has been given an individual de facto cap.

Education minister Jason Clare acknowledged that international education remains “an incredibly important export industry for Australia” – but he stressed the need to manage its growth to keep it sustainable.

“International education doesn’t just make us money, it makes us friends,” he said. “This is about making sure international education grows in a way that supports students, universities and the national interest.”

“The new planning level gives the sector certainty to continue delivering a high-quality educational experience to international students, while addressing national priorities,” he said.

The government confirmed that each institution will receive at least their current allocation next year. But now, public universities will be able to apply to increase their individual enrolment allocations by showing they have increased engagement with Southeast Asia and by proving they have enough student housing to accommodate both domestic and international students.

The renewed focus on Southeast Asia reflects Invested: Australia’s Southeast Asia Economic Strategy to 2040 – a plan to deepen ties between Australia and Southeast Asia in key areas suh as education, agriculture and resources.

Meanwhile, “strategically important” international cohorts, such as students from the Pacific, Timor-Leste students or those granted scholarships from the Australian government, will continue to benefit from “high priority” visa processing, the government confirmed.

The government said that while Ministerial Direction 111 had “played a key role in ensuring fairer access to student visa processing”, it would be replaced with an updated Ministerial Direction to reflect the new national planning level.

This is about making sure international education grows in a way that supports students, universities and the national interest
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And it revealed that, subject to legislation passing through the Senate, the Australian Tertiary Education Commission will oversee managed growth arrangements for higher education. This will be another important step in providing certainty and stability for the sector.

Meanwhile, from 2027 the VET sector will continue to be subject to “visa processing and integrity reforms to shape its size and composition”.

Skills and training minister Andrew Giles said the new measures would “ensure that the international VET sector can grow sustainably to better meet skills needs, in Australia and the region”. 

He added: “From today, VET providers can plan recruitment with confidence for 2026, knowing they will continue to enjoy equitable access to student visa processing.” 

And assistant minister Julian Hill, who addressed delegates at last week’s PIE Live Asia Pacific conference via a video message, branded the international education sector as a “great Australian success story”.

“This government remains committed to sensibly managing the size and shape of the on-shore student market and supporting sustainable growth, especially to welcome more students from Southeast Asia and where accompanied by new housing. We want students to see Australia as a premium destination where they can access high quality education and a great student experience.”

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