Australia will increase its cap on international students by 9% in 2026, bringing the total to 295,000, the government announced Monday. The move includes a specific focus on welcoming more students from Southeast Asia as part of broader efforts to balance migration and national interest.
The current limit, set at 270,000 for 2025, was introduced last year to manage record migration levels that contributed to housing shortages and rising prices. The additional 25,000 spots for 2026 come as the government says its reforms are successfully reducing unsustainable student visa growth.
“This is about ensuring international education grows in a way that benefits students, institutions, and the country,” said Education Minister Jason Clare.
In the 2023 fiscal year, nearly 600,000 student visas were granted, with the largest groups coming from China and India. As demand rebounded post-COVID, the government introduced a series of controls, including doubling student visa fees in 2024 and closing loopholes that allowed continuous visa extensions.
Assistant Minister for International Education Julian Hill said the reforms were “bearing fruit,” enabling the modest expansion. “The numbers were growing out of control,” he said in an interview with ABC. “Tough decisions have brought them to a more sustainable level.”
Under the updated allocation, two-thirds of the slots will go to universities and one-third to the vocational training sector. Larger public universities will be required to ensure students have access to safe housing and must boost enrollment from Southeast Asia to qualify for additional spots.
“It’s important for Australia’s soft power to attract the best and brightest from our Southeast Asian neighbours—students who will carry a piece of Australia with them for life,” Hill added.
The emphasis on Southeast Asia aligns with Prime Minister Anthony Albanese’s strategy to deepen regional ties and reduce reliance on China.
Universities Australia welcomed the announcement. “This is a sensible and strategic step,” said CEO Luke Sheehy. “The government has responded to our calls to grow this critical sector.”
International education is Australia’s top services export, contributing over A$51 billion (US$33 billion) to the economy in 2024.
Reuters/s.s