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The Australian government has announced a planned increase in the cap for international student enrolments, raising the national planning level from 2.70 lakh to 2.95 lakh in 2026. While this marks an uptick compared to 2025, it still falls about 8 per cent short of the immediate post-Covid peak”, the Australian government noted.
This increase aligns with the government’s policy of “managed growth” for the international education sector. Notably, from next year, international students transitioning from Australian high schools to public universities, or moving from recognised pathway providers or TAFE institutions, will be exempt from the national cap — a move welcomed by school sector leaders. This policy change ensures such students aren’t disadvantaged due to delayed access to university placements after their school results are declared.
Currently, the system sets enrolment limits as follows: public universities can admit up to 1.45 lakh new international students, vocational education and training (VET) providers up to 95,000, and private universities up to 30,000. Each institution has also been allocated a separate quota.
Education Minister Jason Clare reiterated that international education remains a vital export industry for Australia. He emphasised that the objective is not only to derive economic benefit but also to foster international goodwill. “This is about ensuring the sector grows in a way that benefits students, institutions, and aligns with national interests,” he said.
The government assured institutions that they will retain their current allocation in 2026. Additionally, public universities can apply for increased quotas if they can demonstrate enhanced ties with Southeast Asia and adequate student housing infrastructure for both local and international learners.
For universities that rely heavily on income from overseas enrolments, this forward clarity is crucial. Stakeholders like Brett Lovegrove, Pro Vice Chancellor for Global Partnerships at the University of Queensland, highlighted the importance of knowing future enrolment allocations to make informed infrastructure and investment decisions. Long-term planning often involves hundreds of millions of dollars, and uncertainty could hinder such commitments.
The renewed regional focus complements Australia’s long-term strategy to strengthen economic relations with Southeast Asia through investments in education, agriculture, and resource development.
In parallel, priority visa processing will continue for students from key regions like the Pacific and Timor-Leste, as well as for recipients of Australian government scholarships.
The government plans to update Ministerial Direction 111, which has so far guided visa processing fairness, to align with the revised planning levels. A new regulatory body, the Australian Tertiary Education Commission, is expected to oversee this new managed growth framework, subject to Senate approval.
For the VET sector, reforms in visa processing and integrity measures are expected to continue shaping its future from 2027. Skills and Training Minister Andrew Giles stated that the goal is to ensure the sector evolves sustainably and supports both domestic and regional skill demands.
Assistant Minister Julian Hill, addressing a recent education conference, reaffirmed Australia’s commitment to providing high-quality education and a welcoming experience to international students, particularly from Southeast Asia. He also stressed that future growth must be supported by adequate housing.
The national planning level system effectively assigns institution-specific international student enrolment caps to ensure that the expansion of Australia’s international education sector remains balanced and sustainable.
