Sector urges policy stability as Australia looks to rebuild trust in 2026
As Australia enters a period of change, stakeholders across the international education sector spoke to The PIE News about their priorities and predictions for the year ahead.
For Melanie Macfarlane, migration specialist and CEO and principal of MMMigration, the most important opportunity to seize as the sector enters a new year is the regaining and retaining of trust Australia’s international education visa system.
“We need consistent government policy that does not keep chopping and changing in order to create this trust and stability,” she told The PIE.
“International students need to be left out of any ongoing dialogue about immigration and instead applauded for all they contribute to the economy and the soft diplomacy they create in their home countries.”
International education was worth AUD $51.0 billion to the Australian economy in the financial year 2023-24, with $30.2bn paid as goods and services and $20.6bn paid as tuition fees.
Following a period of policy turmoil in 2024 which saw international education make headlines as the Albanese government sought and failed to introduce a hard cap on the number of international students the country allows, the sector has been enjoying a period of relatively stability in recent months.
Stakeholders are adapting to the enrolment targets handed down to providers – also known as new overseas student commencements or NOSCS – introduced under the government’s National Planning Level.
However, a suite of reforms is on the cards for Australia’s international education sector under the Education Legislation Amendment (Integrity and Other Measures) Bill 2025, which proposes changes across several key education laws, including the Education Services for Overseas Students (ESOS) Act.
The measures are designed to strengthen quality, integrity and long-term sustainability across the sector, and include changes to the broader legal definition of an education agent, alongside expanded ministerial powers.
In addition to this, at the end of 2025, a new visa processing directive – Ministerial Direction 115 – was introduced, replacing Ministerial Direction 111. The new settings under Ministerial Direction 115 largely mirror its predecessor, with a handful of key changes – including the introduction of a third priority category for providers that exceed their NOSC allocations by more than 15%.
“The sector needs to get to grips with the new environment and act accordingly and education agents need to have some sort of self-regulation with education providers kept equally accountable,” said Macfarlane.
Elsewhere, Macfarlane is urging the government to look at the visa fees for the ELICOS sector and “bring these down to a sensible level, given these students are likely to then go onto higher education studies in Australia or go home, having enjoyed a great experience in Australia”.
Australia’s student visa fee sits at AUD $2,000, following an increase in June 2025, making it the most expensive in the world. Since then, stakeholders have been vocal about the impact on Australia’s competitive standing and the financial impact on the ELICOS sector with lobbying continuing to decrease the fee for certain short-term programs.
Macfarlane said a personal priority for 2026 is to continue to highlight success stories of migrants in Australia including those of international students and what they bring to the country and to continue to advocate for and develop an accredited system for education agents to be self-regulated – “one that can be replicated worldwide”.
The PIE spoke to Jane Li, regional operations director for Australasia at IDP about some of the trends shaping Australia’s international education sector in the year ahead. For Li, the most exciting opportunity ahead is the expansion of ‘Study with Australia’, as offshore and hybrid delivery models reshape how — and where — students connect with Australian education.
“With more students considering alternative destinations or blended pathways, offshore and hybrid models are giving providers a way to engage with students earlier and keep that connection throughout their decision-making journeys,” said Li.
IDP’s latest Emerging Futures survey showed just how significant this shift has become, with 85% of prospective students seriously considering two or more study destinations, and nearly 60% weighing three or more, explained Li.
“This means competition is no longer limited to a single preferred country – students are making pretty broad comparisons based on value, outcomes and flexibility.”
Li urges institutions to draw on the education giant’s primary-source data to better understand what is driving students to consider alternative pathways – and which cohorts are most likely to change destinations.
“With that insight, providers can assess where transnational education, offshore campuses or online pathways might meet demand, and also ensure their onshore offering is competitive.”
As emerging destinations gather pace, maintaining competitiveness has become a defining challenge for the sector.
Policy fluctuation and mixed messaging has eroded trust in a number of key markets, so predictability and clarity has to be the priority in 2026
Jane Li, IDP
“I think next year, Australia’s competitiveness is going to rely heavily on keeping policy stable enough to signals confidence to high-quality students. Policy fluctuation and mixed messaging has eroded trust in a number of key markets, so predictability and clarity has to be the priority in 2026,” said Li.
Li also pointed to a growing focus among students on return on investment, with many increasingly willing to switch destinations to maximise it.
“Emerging Futures data tells us that students are more than happy to switch countries for guaranteed internships or work-integrated learning during their studies (69%), or for post-study work or stay-back rights (67%). These expectations are central to how students make decisions about value.
“While quality and integrity must remain at the heart of international education policy, Australia really needs to ensure its post-study pathways are attractive and accessible. Aligning quality assurance with clear, practical post-study options will help the sector appeal to students who are evaluating the degree itself, but the longer-term outcomes too.”
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