The federal Government has unveiled a National Planning Level of 295,000 international student places for 2026.The new cap represents a 25,000 increase on 2025 levels with all currently active international education providers to retain at least their existing allocation next year.

Though the 2026 cap is an uplift, it still sits 8 per cent below the post-COVID peak.

Public universities will have an opportunity to increase their student allocations for 2026—if they meet key Government priorities. Institutions must demonstrate stronger engagement with Southeast Asia, aligning with Australia’s Invested: Southeast Asia Economic Strategy to 2040, and show progress in providing safe, secure student accommodation that benefits both domestic and international cohorts.

Ministerial Direction 111, which has guided visa processing, will be updated to reflect the new 2026 planning arrangements. High-priority processing will continue for key student cohorts, including Pacific and Timor-Leste nationals and Australian Government scholarship recipients.

Students transitioning from Australian secondary schools, pathway providers, or TAFE into publicly funded universities will be exempt from the national cap from 2026.

Looking ahead to 2027, the newly proposed Australian Tertiary Education Commission will assume responsibility for overseeing managed growth across higher education—pending legislation. For the international VET sector, growth will continue to be shaped by visa processing and integrity reforms.

In the words of Government officials, the new framework is designed to balance opportunity with responsibility, ensuring Australia remains a world-class destination for international students while protecting the integrity and sustainability of the system.

The Koala was quickly on the blower to Phil Honeywood, CEO of the International Education Association of Australia (IEAA), who said:

“[The] IEAA welcomes the increase in new overseas student numbers to 295,000 for 2026.

However, independent higher education providers will be clearly disappointed in only receiving a 3% increase compared to public universities’ 9%.

The Government have chosen not to punish providers who have overenrolled their 2025 allocation on this occasion. But we anticipate restrictive measures being built in to stop over enrolments in 2026.

Other welcome measures include the ability of public unis to put EOIs in to gain additional places (from a new pool) if they can show increased dedicated accommodation places and additional intake activity from SE Asia markets.

The student visa charge reduction is still being worked on for ELICOS and non-award programs.

Combined with other changes e.g to stop double-counting of NOSC for pathway colleges, this is a package that has been closely calibrated to take account of both stakeholder feedback and the political reality of not being able to increase numbers too quickly”

Universities Australia has issued a press statement with its CEO Luke Sheehy stating:

“Universities have called for growth in this critically important sector, and the Government has honoured this,” Universities Australia Chief Executive Officer Luke Sheehy said.

“This is a sensible approach and will provide the stability and certainty universities desperately need.

“International students contribute $52 billion to Australia’s economy and are a vital part of our communities, filling skills gaps in our cities and regions and strengthening our cultural fabric.

“They also directly support universities, covering domestic funding gaps and ensuring our sector can continue to deliver the pipeline of skilled workers and undertake the R&D our country needs.

“We welcome the opportunity for universities to grow their international student intake by aligning with key national priorities, including deeper engagement with Southeast Asia and the provision of safe, secure student accommodation that benefits both domestic and international students.

“We’ll continue to work constructively with the Government to strengthen the integrity of the sector, including the design of a new ministerial direction, to ensure our prized international education sector continues to deliver in the national interest.”

The joint press release from Ministers Clare, Burke, Giles and Hill can be seen here.