Australia to Increase Foreign Student Cap to 295,000 in 2026, Prioritising South-east Asian Applicants

SYDNEY, Aug 4 — Australia will increase its cap on foreign student admissions by 9 per cent to 295,000 in 2026, with a focus on applicants from South-east Asia, the government announced today.

The cap, introduced last year to help curb record migration and its impact on housing prices, had previously been set at 270,000 for 2025. The additional 25,000 places for 2026 come as the government says its measures to manage “out of control” student numbers are proving effective.

“This is about ensuring international education grows in a way that supports students, universities, and the national interest,” Education Minister Jason Clare said in a statement.

Nearly 600,000 student visas were granted in the 2023 financial year, reflecting a strong rebound in international enrolments following the Covid-19 pandemic. China and India remain the top source countries for Australia’s international students.

In addition to the cap, the government has taken steps to tighten student visa rules, including more than doubling the visa application fee in 2024 and closing loopholes that allowed students to repeatedly extend their stay.

“The numbers were growing out of control,” Hill told ABC. “The government has made tough decisions over the past year, not always popular within the sector, to stabilise growth to a more sustainable level.”

Under the revised policy, roughly two-thirds of student places will be allocated to universities, with the remaining one-third going to vocational training providers.

Larger public universities will be required to prove that both domestic and international students have access to safe and secure housing. Institutions that increase recruitment from South-east Asia may also receive additional allocation.

Hill stressed the strategic importance of strengthening ties with South-east Asia, noting the long-term benefits of cultural exchange.

“It’s vital for Australia’s future soft power that we continue attracting the brightest minds from our South-east Asian neighbours—ensuring they carry a piece of Australia with them for life,” he said.

Fostering closer relations with South-east Asia has been a key priority for Prime Minister Anthony Albanese’s Labor government, which aims to reduce economic reliance on China.

Universities Australia welcomed the move, calling the increase “sensible.”

“Universities have been calling for growth in this critically important sector, and the government has delivered,” said CEO Luke Sheehy.

International education remains a vital part of Australia's economy, contributing over AUD51 billion (USD$33.05 billion) in 2024, making it the country's top services export. — Reuters