Australia to Raise International Student Enrolment Cap to 295,000 in 2026

Australia will allow 25,000 additional international students to enrol at its educational institutions next year, bringing the total national cap to 295,000 in 2026. However, the increased intake will come with specific conditions, Education Minister Jason Clare announced.

The current cap, set at 270,000 under Ministerial Direction 111, will be revised to support sustainable growth in the sector. While this marks an increase, it still sits 8% below the immediate post-Covid peak, according to the government.

From next year, international students progressing from Australian secondary schools to public universities, or from TAFE institutions or affiliated pathway providers, will not be counted under the national cap — offering more flexibility for those already in the country.

Institutional Caps and Conditions
Australia’s enrolment cap system allocates specific limits to different types of institutions:

• Public universities: 145,000 new enrolments
• VET providers: 95,000
• Private universities: 30,000

Each provider is also subject to its own individual cap. Minister Clare emphasized that the system aims to maintain the long-term sustainability of the sector.

• “International education doesn’t just make us money, it makes us friends,” said Clare.

“This is about ensuring growth that supports students, universities, and the national interest.”

Institutions are guaranteed at least their current allocations for 2026. However, public universities will now be able to apply for increased enrolment caps by demonstrating two key criteria:

• Greater engagement with Southeast Asia, aligning with the government's Southeast Asia Economic Strategy to 2040
• Adequate student housing to accommodate both domestic and international students

The government reaffirmed its commitment to “high-priority visa processing” for strategic cohorts, including:

• Students from the Pacific
• Timor-Leste
• Those receiving Australian government scholarships

Oversight and Future Planning
An updated Ministerial Direction will replace Direction 111 to reflect the new planning level. Additionally, the proposed Australian Tertiary Education Commission — pending Senate approval — will oversee growth and ensure stability in the higher education sector.

From 2027, the VET sector will be governed by new visa processing and integrity reforms to manage its size and demographic composition.

• “These changes ensure the VET sector grows sustainably to meet skill needs both in Australia and across the region,” said Skills and Training Minister Andrew Giles.

He added that the reforms allow VET providers to plan with confidence, knowing they will retain fair access to visa processing.

Assistant Minister Julian Hill, speaking at the PIE Live Asia Pacific conference, praised the international education sector as a "great Australian success story."

• “Our goal is to sensibly manage the student market’s size and shape. We’re committed to sustainable growth, especially for students from Southeast Asia, supported by adequate housing. We want Australia to be seen as a premium education destination.”

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