Good news for Indian students! Australia to raise foreign student cap by 9% to 295,000
The move comes after last year’s decision to cap places at 270,000 in 2025 to manage what officials called “out of control” migration, which had driven up housing prices and strained infrastructure
- Aug 6, 2025,
- Updated Aug 6, 2025 2:35 PM IST
Australia will raise its cap on international student arrivals by 9% to 295,000 in 2026, the Albanese government announced Monday, signalling a calibrated return to growth after a year of tough immigration curbs.
The move comes after last year’s decision to cap places at 270,000 in 2025 to manage what officials called “out of control” migration, which had driven up housing prices and strained infrastructure. With signs that those curbs are working, the government is allowing a modest increase of 25,000 spots.
“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 additional intake will come with tighter rules. Public universities will have to prove that both domestic and international students have access to “safe and secure housing,” and will be incentivised to recruit more students from Southeast Asia.
International Education Assistant Minister Julian Hill said, “The numbers were growing out of control,” adding that the government had taken “tough decisions over the last 12 months, not always loved by the sector,” to rein in unsustainable growth.
Of the new 295,000 limit, two-thirds of places will go to universities and one-third to vocational skills training.
Australia granted nearly 600,000 student visas in the 2023 financial year, a post-COVID record driven largely by students from China and India. However, in 2024, the visa fee for international students was more than doubled, and the government began closing loopholes that allowed long-term stays via repeated extensions.
Universities Australia welcomed the expansion. “Universities have called for growth in this critically important sector, and the government has honoured this,” said CEO Luke Sheehy, calling the move “sensible.”
The Australian government also emphasised the importance of Southeast Asia in its new strategy. “It’s important for Australia’s future soft power that we continue to bring the best and brightest from our neighbours to have a bit of Australia with them for the rest of their life,” Hill told the ABC.
"Globally, countries are recalibrating. The UK saw a 10% drop in study visas, Canada introduced a national cap, and the US reported a 12% decline in student visas early this year. Amidst this, Australia is choosing sustainable growth, welcoming more students where infrastructure and opportunities exist. International students contribute A$51.5 billion annually to the economy and help fill key skill gaps. By tying growth to real-world capacity, Australia offers more than just a degree it offers clarity, opportunity, and long-term value. It’s preparing not just to welcome students, but to support their success," Mayank Maheshwari, Co-Founder & COO, University Living.
International education remains Australia’s largest services export, contributing more than A$51 billion ($33 billion) to the economy in 2024. The new increase aims to balance that economic value with housing and integration concerns, while shifting dependence away from China and strengthening ties with Southeast Asia.
(With Reuters inputs)
Australia will raise its cap on international student arrivals by 9% to 295,000 in 2026, the Albanese government announced Monday, signalling a calibrated return to growth after a year of tough immigration curbs.
The move comes after last year’s decision to cap places at 270,000 in 2025 to manage what officials called “out of control” migration, which had driven up housing prices and strained infrastructure. With signs that those curbs are working, the government is allowing a modest increase of 25,000 spots.
“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 additional intake will come with tighter rules. Public universities will have to prove that both domestic and international students have access to “safe and secure housing,” and will be incentivised to recruit more students from Southeast Asia.
International Education Assistant Minister Julian Hill said, “The numbers were growing out of control,” adding that the government had taken “tough decisions over the last 12 months, not always loved by the sector,” to rein in unsustainable growth.
Of the new 295,000 limit, two-thirds of places will go to universities and one-third to vocational skills training.
Australia granted nearly 600,000 student visas in the 2023 financial year, a post-COVID record driven largely by students from China and India. However, in 2024, the visa fee for international students was more than doubled, and the government began closing loopholes that allowed long-term stays via repeated extensions.
Universities Australia welcomed the expansion. “Universities have called for growth in this critically important sector, and the government has honoured this,” said CEO Luke Sheehy, calling the move “sensible.”
The Australian government also emphasised the importance of Southeast Asia in its new strategy. “It’s important for Australia’s future soft power that we continue to bring the best and brightest from our neighbours to have a bit of Australia with them for the rest of their life,” Hill told the ABC.
"Globally, countries are recalibrating. The UK saw a 10% drop in study visas, Canada introduced a national cap, and the US reported a 12% decline in student visas early this year. Amidst this, Australia is choosing sustainable growth, welcoming more students where infrastructure and opportunities exist. International students contribute A$51.5 billion annually to the economy and help fill key skill gaps. By tying growth to real-world capacity, Australia offers more than just a degree it offers clarity, opportunity, and long-term value. It’s preparing not just to welcome students, but to support their success," Mayank Maheshwari, Co-Founder & COO, University Living.
International education remains Australia’s largest services export, contributing more than A$51 billion ($33 billion) to the economy in 2024. The new increase aims to balance that economic value with housing and integration concerns, while shifting dependence away from China and strengthening ties with Southeast Asia.
(With Reuters inputs)