Australia drops proposal to cap international student enrolments

The change comes as part of a new education reform bill announced last week by Education Minister Jason Clare.

The Education Legislation Amendment (Integrity and Other Measures) Bill 2025 largely mirrors last year’s version but removes the limit on international student enrolments.

Last August, the government had proposed limiting international student numbers to 270,000 in 2025, citing concerns that rising immigration was contributing to higher rental prices.

Under that plan, universities would have been capped at 145,000 commencements, the skills training sector at 95,000, and other universities and non-university providers at around 30,000. The proposal was ultimately rejected by Parliament in December.

Although the cap has been dropped, the new bill introduces measures to strengthen the integrity of Australia’s education system, as posted on the website of the Ministers' Media Center.

It bans education agents from receiving commissions for helping students transfer between institutions to remain in the country illegally, and prevents schools from shutting down and reopening under new names to avoid penalties.

Institutions with poor quality standards can have their right to offer courses revoked, while schools are required to train domestic students for at least two years before enrolling international students. Furthermore, institutions offering courses leading to overseas qualifications must be licensed by the Tertiary Education Quality and Standards Agency (TEQSA).

Authorized providers must also notify TEQSA of any new or changed offshore delivery arrangements and report annually on their activities, giving regulators the information they need to monitor quality and address risks early.

"International education is an important national asset. It brings tens of billions of dollars into the economy each year and builds friendships and long-term connections around the world. But it is also a target for unscrupulous individuals trying to make a quick buck," Minister Clare told Parliament on Oct. 9, according to the Ministers' Media Center.

Julian Hill, Assistant Minister for International Education, told The PIE News: "Australia's future success requires a focus on quality, integrity, and a strong student experience. The amendments are designed to crack down on exploitation, increase transparency, and safeguard the reputation of the sector."

Australia hosted 791,146 international students from January to July 2025, with Chinese students accounting for the largest group at 23%, followed by India at 17%, Nepal at 8%, and Vietnam and the Philippines at 4% each.

Since late 2023, Australia has tightened student visa regulations to better manage immigration. These measures include shortening post-graduation stay durations, raising English-language proficiency standards, prohibiting conversions from tourist visas to student visas, and increasing financial proof requirements by about 20%, now set at approximately AUD$29,710 (US$19,820).

The government last December introduced a new visa rule to manage international student numbers by slowing down visa processing once universities reach a predetermined target.

The Ministerial Direction 111 (MD111), effective on Dec. 19, establishes two categories for student visa processing: "high priority" and "standard priority."

Universities will receive expedited visa approvals until 80% of their allocated international student target is reached. After this threshold, visa processing times will be slowed.