New Growth Strategy Balances Expansion and Regulation

81

The Australian government has announced a planned increase to its cap on international student arrivals, allowing up to 295,000 students by 2026—a 9% rise from the 2025 cap of 270,000. The decision marks a cautious return to growth in the international education sector after a year of restrictive immigration policies designed to curb surging student visa numbers that had placed significant pressure on housing and public infrastructure.

Authorities introduced the initial cap last year following concerns over unsustainable migration trends, particularly a post-pandemic surge in student arrivals. The Education Minister indicated that this new target is part of a strategic approach to ensure that international education benefits not only the students and universities but also aligns with broader national interests.

Housing Requirements and Regional Focus

The 25,000-place increase will come with stricter regulations. Public universities will now be required to demonstrate that both domestic and international students have access to safe and secure housing options. Additionally, institutions will be encouraged to broaden their recruitment strategies, with a focus on attracting more students from Southeast Asia as part of Australia’s evolving international education strategy.

Officials noted that past growth had been unsustainable, prompting difficult policy decisions over the previous year. These included a significant hike in visa fees and the closure of pathways that allowed students to prolong their stay in Australia through repeated visa extensions.

Under the revised framework, two-thirds of the available places will be allocated to university-level education, while the remaining third will support vocational education and training.

In the 2023 financial year, Australia issued close to 600,000 student visas—primarily to students from China and India—setting a post-COVID record. However, the government has since taken measures to manage the scale of incoming students more effectively.

Peak education bodies have responded positively to the cap increase, viewing it as a balanced and forward-looking decision. The government has also highlighted the long-term benefits of fostering ties with Southeast Asia, noting its value for Australia’s diplomatic and cultural influence in the region.