Australia plans higher cap on international students, prioritizing Southeast Asia

Australia will allow up to 295,000 international students in 2026, a 9% increase from the 270,000 cap set for 2025, the federal government announced on Aug 4.

The move comes as part of a broader strategy to stabilize migration levels while supporting the growth of the international education sector.

The revised cap includes an additional 25,000 student places and is expected to benefit applicants from Southeast Asian countries, which the government is prioritizing in its updated admissions framework.

“This is about making sure international education grows in a way that supports students, universities, and the national interest,” Education Minister Jason Clare said in a statement.

The government had first introduced limits on international student numbers last year in response to record migration levels that were contributing to a sharp rise in housing prices.

Despite the restrictions, Australia granted nearly 600,000 student visas during the 2023 financial year as foreign students returned in large numbers following the pandemic.

Assistant Minister for International Education Julian Hill said the measures introduced over the past year were helping curb excessive growth in student migration.

“The numbers were growing out of control,” he said. “The government has taken tough decisions over the last 12 months, not always loved by the sector, to get the numbers down and get them to a more sustainable footing.”

Alongside the cap, the government has also tightened visa regulations and more than doubled the application fee for foreign students in 2024.

These changes are part of a broader plan to close loopholes that allowed students to remain in the country indefinitely by repeatedly extending their stay.

According to the new policy, around two-thirds of student places will go to the university sector and the remaining one-third to vocational training programs.

Larger public universities seeking to expand their allocations must demonstrate they can provide safe and secure housing for both domestic and international students and recruit more applicants from Southeast Asia.

“It was important for Australia’s future soft power that we continue to bring the best and brightest from our (Southeast Asian) neighbors to have a bit of Australia with them for the rest of their life,” Hill said.

The push to deepen ties with Southeast Asia is part of Prime Minister Anthony Albanese’s broader foreign policy agenda aimed at reducing the country’s reliance on China, which remains a major source of international students alongside India.

Universities Australia, the peak body representing the higher education sector, welcomed the government’s move.

“Universities have called for growth in this critically important sector, and the government has honored this,” said CEO Luke Sheehy, calling the revised cap a “sensible” step forward.

International education is one of Australia’s largest export sectors, contributing more than A$51 billion ($33.05 billion) to the economy in 2024.

The country also continues to have one of the highest proportions of foreign students in its higher education system globally.