REFORMS FIRST | Govt Raises Int’l Student Enrolment Cap to 295,000

Simple Vishwakarma Mumbai

The federal government has approved a 9% increase in the overseas student enrolment cap for 2026, a move that is anticipated to change the country's international education scene. The existing cap of 270,000 overseas students will be raised to 295,000 in 2026.

The choice is a component of Australia's larger reevaluation of its migration policy, which attempts to strike a balance between the expansion of its profitable education sector and the growing demands on housing, infrastructure, and student welfare.

The increase, according to Education Minister Jason Clare, shows a more measured approach to controlling the number of overseas students while yet encouraging the growth of the industry. “This is about making sure international education grows in a way that supports students, universities, and the national interest,” Clare noted in a statement released Monday.

Rohit Mehra who is planning to pursue Master of Data Science from University of Melbourne said, “The increase to 295,000 seats in 2026 feels like a small win for students like me. I’ve been preparing for the University of Melbourne’s Data Science program for over a year, and the earlier uncertainty around the cap was stressing me out. Now, I just hope visa processing doesn’t slow down and that housing near campus becomes more affordable.”

Focus on Southeast Asia

A key shift in the revised policy is the Australian government’s decision to prioritise students from Southeast Asian nations. Officials say this is part of a larger diplomatic effort to deepen regional ties and diversify student source countries—especially in light of Australia’s continued efforts to reduce its reliance on China.

Julian Hill, the Assistant Minister for Education, stressed the necessity of a more sustainable strategy. “The numbers were growing out of control,” Hill told ABC. “We’ve made some tough decisions over the past year to bring them down to a more sustainable level.” Mayank Maheshwari, Co-Founder & COO of University Living, welcomed the change as a strategic step for the global education market.

“Australia’s decision to raise its international student cap to 295,000 in 2026, a 9% increase from the 2025 cap of 270,000, is a clear and positive step toward sustainable growth in global education. At a time when many countries are tightening entry routes, Australia is signaling openness, stability, and long-term planning by aligning intake with infrastructure, housing, and student support systems.”

He noted that the policy offers much-needed clarity for Indian students and families in a shifting global education landscape. According to the University Living ANZ Report 2025, undergraduate tuition typically ranges from AUD 20,000–40,000 annually, postgraduate programs cost AUD 22,000–50,000, and specialised degrees like medicine or an MBA can reach AUD 100,000. Monthly living costs are estimated at AUD 1,400–2,200, with an additional AUD 3,000–5,000 for travel, insurance, and academic materials.

“Australia’s student housing market, valued at AUD 10 billion, continues to expand to accommodate growing demand,” Maheshwari added. “With international students contributing A$51.5 billion annually and helping bridge skill gaps in vital sectors, this decision reinforces Australia’s position as a top destination that values student success, academic excellence, and long-term opportunity.”

Visa reforms

The announcement follows a year of tighter immigration controls. In 2024, the government more than doubled student visa fees and rolled out reforms aimed at curbing the practice of continuous visa extensions. According to Hill, these measures are beginning to yield results, paving the way for a modest, controlled increase in international enrolments. About two-thirds of the 295,000 student spots scheduled for 2026 will be given to universities, with the remaining third going to providers of vocational education and training. However, institutions will need to meet new criteria to benefit from the increased intake. Larger public universities, in particular, must now demonstrate they provide safe and secure housing for both international and domestic students.

As it changes its approach to international education, the 2026 student cap raise demonstrates a renewed, albeit cautious, commitment to maintaining Australia's position as a top study destination worldwide, while maintaining national infrastructure and student welfare as major priorities.