Australia Holds Student Cap Amid Visa Fee Hikes

The Australian Government has confirmed that it will maintain its National Planning Level (NPL) for international student commencements at 295,000 in 2027, signalling a continued focus on managing the country's international education sector while ensuring long-term stability.

The announcement was made by Education Minister Jason Clare, Skills Minister Andrew Giles, and Assistant Minister for International Education Julian Hill as part of the Government's 2027 International Education Settings.

The 2027 cap remains unchanged from 2026 and sits 8% below the immediate post-pandemic peak in international student commencements.

Government data suggests enrolments are already tracking below the cap. International student commencements in 2026 are currently 8% lower than the same period in 2025 and 13% below 2019 levels, indicating that current demand remains well within the planning framework.

"International education is an incredibly important export industry for Australia, but we need to manage it sustainably," Education Minister Jason Clare said. "This is about making sure international education supports students, universities and the national interest."

Regional Universities to Retain Strong Allocations

Under the 2027 settings, all active international education providers will receive at least their current allocation of international student places. The Government said the policy preserves the stronger allocations granted to regional universities during last year's distribution process, helping spread the economic and educational benefits of international education across the country.

Beginning in 2027, responsibility for allocating international student places among higher education providers will shift to the Australian Tertiary Education Commission (ATEC), while the Government will continue to determine the overall National Planning Level.

ATEC has been operating in an interim capacity since July 2025. During the previous allocation round, the commission prioritized programs aligned with Australia's workforce shortages—including nursing and information technology—while tightening allocations for high-demand courses such as business degrees at the country's Group of Eight universities.

Beyond student allocations, ATEC is also tasked with coordinating support for regional institutions, overseeing tuition fee settings, and aligning education policy with Australia's broader migration and skills agenda.

Student Visa Fees Increase for the Third Time Since 2024

The release of the 2027 international education framework comes alongside another increase in Australia's student visa application charges.

Last week, the Government announced a 25% increase in fees for Student and Temporary Graduate visas, raising the application charge for the Subclass 500 Student Visa to AUD 2,500.

The changes also introduce a separate AUD 2,050 application fee for standalone English Language Intensive Courses for Overseas Students (ELICOS). Lower visa fees will apply to applicants from ASEAN member states and those undertaking non-award courses, while existing concessions for students from Pacific Island nations and Timor-Leste will remain in place.

The latest increase marks the third rise in Australia's student visa application charge since 2024.

The sector has expressed growing concern over the cumulative impact of higher visa costs. According to English Australia, the national peak body representing Australia's English-language education sector, the increase in the student visa application charge from AUD 710 to AUD 1,600 in July 2024 led to a 38% decline in visa applications for independent ELICOS providers.

A second increase—to AUD 2,000 in July 2025—was followed by another 25% drop in applications. Combined with historically low student visa approval rates for independent ELICOS providers, the sector recorded its lowest application numbers on record in 2025–26, with volumes 24% below those recorded in 2005–06.

The Government argues that the latest policy settings provide greater certainty for education providers while ensuring international education continues to support Australia's economic and workforce priorities.

However, the combination of enrolment controls, higher visa costs, and tighter visa settings is expected to continue weighing on international student demand. Industry observers warn that these measures could make it increasingly challenging for Australia to maintain its competitive position in the global international education market, particularly as other major study destinations seek to attract a larger share of globally mobile students.