The Albanese Government today set Australia’s 2026 National Planning Level (NPL) for international students at 295,000 places, an increase of 25,000 over the 2025 cap.
The announcement—welcomed by universities, vocational providers, and education sector stakeholders—aims to balance sector recovery from COVID-19 disruptions with long-term sustainability and quality.
Minister for Education Jason Clare said, “International education is an incredibly important export industry for Australia but we need to manage its growth so it’s sustainable.”
“International education doesn’t just make us money, it makes us friends. This is about making sure international education grows in a way that supports students, universities and the national interest.”
Clare stressed that all active international education providers will retain at least their current allocations in 2026.
Public universities may apply for additional higher-education places by demonstrating two key government priorities: deeper engagement with Southeast Asia in line with the Invested: Australia’s Southeast Asia Economic Strategy to 2040, and expanded student accommodation to guarantee safe, secure housing for both domestic and international learners.
The 295,000-place cap remains 8 per cent below the sector’s immediate post-pandemic peak, reflecting a cautious approach as the industry rebuilds. Last year’s reforms—centred on visa integrity and student welfare—have helped set enrolments on a more measured trajectory, Clare noted, providing certainty for planning and investment.
“The new planning level gives the sector certainty to continue delivering a high-quality educational experience to international students, while addressing national priorities,”
Clare added.
Visa Processing and Integrity
Home Affairs Minister Tony Burke affirmed that visa reforms will continue underpinning sustainable growth.
He said, “The Albanese Government is supporting a strong international education sector, while maintaining the integrity of the migration system.”
“We are making sure student visa processing supports genuine education outcomes and our strategic priorities – including increasing provision of student accommodation.”
Ministerial Direction 111, which has streamlined student visa processing, will be updated to reflect the 2026 arrangements. Critically, strategically important cohorts—Pacific and Timor-Leste students, along with Australian government scholarship holders—will receive priority processing throughout 2026.
VET Sector Confidence
For the vocational education and training (VET) sector, Minister for Skills and Training Andrew Giles pledged that the new settings will bolster sustainable expansion:
Minister Giles said, “The diverse nationalities of international VET students present an opportunity to strengthen our international partnerships.”
“The settings that the Government has put in place for 2026 will ensure that the international VET sector can grow sustainably to better meet skills needs, in Australia and the region.”
From 2026, students transitioning from onshore secondary-school programs, affiliated pathway providers, or TAFE institutes into publicly funded universities will be exempt from the NPL—further smoothing progression routes and supporting domestic pathways.
Planning for the Future
Assistant Minister for International Education Julian Hill highlighted the economic importance of the decision:
“International education is a great Australian success story,” said Minister Hill.
“Australians can rightly be proud of this now over $50 billion export sector, which supports over 250,000 Australian jobs. It’s the biggest export we don’t dig or drill out of the ground.”
Hill noted that from 2027, subject to legislation, the Australian Tertiary Education Commission will oversee managed growth for higher education, while the VET sector will rely on visa processing and integrity reforms to shape its future size and composition.
“This Government remains committed to sensibly managing the size and shape of the on-shore student market and supporting sustainable growth, especially to welcome more students from Southeast Asia and where accompanied by new housing,” Hill said.
“We want students to see Australia as a premium destination where they can access high-quality education and a great student experience.”
Together, these measures aim to ensure Australia’s international education sector remains resilient, globally competitive, and aligned with national strategic priorities—strengthening both Australia’s economy and its diplomatic ties across the Indo-Pacific.
Support our Journalism
No-nonsense journalism. No paywalls. Whether you’re in Australia, the UK, Canada, the USA, or India, you can support The Australia Today by taking a paid subscription via Patreon or donating via PayPal — and help keep honest, fearless journalism alive.
