· Australia sets 295,000 cap for international students in 2026, up by 25,000 from 2025.
· Public universities can gain more places by aligning with Southeast Asia and offering student housing.
· Students from schools, TAFEs, and pathway programs to be exempt from the 2026 cap.
The Australian Government has released an additional national planning level of 295,000 international student spots for 2026, a 25,000 increase on 2025. The existing active international education providers will have at least their present allocations in the following year.
While this is an improvement, the new number is still 8% short of the post-COVID high. That said, public universities will be eligible for more student spots in 2026 if they have a priority with government. These are deepened engagement with Southeast Asia, consistent with the Invested: Southeast Asia Economic Strategy to 2040, and concrete steps in providing safe, secure student accommodation for local and international students.
Ministerial Direction 111, which currently governs student visa processing, will be revised to accommodate the 2026 policy change. Pacific and Timor-Leste nationals, and Australian Government scholarship recipients, will still be given priority visa processing.
In addition, students moving from Australian high schools, TAFEs, or pathway providers into public universities will be exempted from the 2026 cap.
In the future, from 2027, the Australian Tertiary Education Commission subject to legislation will manage the planned expansion of higher education in Australia. In the international VET market, future expansion will be shaped by continuing visa integrity changes and policy revisions.
The government representatives indicate that the revised framework strikes a balance between growth and accountability so that Australia can continue to uphold its international reputation in international education and protect the integrity and sustainability of the system.
International Education Association of Australia (IEAA) CEO Phil Honeywood praised the overall rise but was concerned with the gap in growth between institutions:
"IEAA welcomes the lift to 295,000 international student places by 2026. But independent higher education providers grew just 3%, whereas public universities were given 9%.".
Although the Government has not sanctioned providers who overshot their 2025 allocations, we anticipate more stringent controls next year.
Positively, public universities are able to apply for extra allocations from a new pool if they provide more accommodation and increase student intake from Southeast Asia.
Other developments include ongoing consideration of reducing student visa fees for ELICOS and non-award courses, and addressing double-counting problems for pathway colleges.
In an additional statement, Universities Australia CEO Luke Sheehy welcomed the Government's leadership:
- "The Government has heeded our call for stable, sustainable growth in this important sector.
- International students deliver $52 billion to the Australian economy every year and make a crucial contribution to our labour market, research, and society.
- This new framework not just buttresses the financials of universities but also deepens cultural connections and addresses skill shortages.".
We are delighted with the chance to expand even more by joining important national priorities and will persist in working alongside the Government to maintain the integrity of the sector."
