The Albanese government plans to boost the number of international students studying in Australia by at least 9 percent.
Labor will increase international student places by 25,000 to 295,000 students in 2026, up from 270,000 in 2025.
Priority will be given to students from Southeast Asia and universities that can provide new housing.
“The 2026 National Planning Level manages growth in international education in a sustainable way, with 25,000 additional places compared to 2025.”
International students transitioning from school or TAFE to university will also now be exempt from the national planning level cap on numbers.
Changes to Visa Processing
In terms of student visa processing, a new ministerial direction will be put in place to reflect the 2026 caps.The government said Pacific and Timor-Leste students and Australian government scholarship holders would receive priority for student visa processing.
Home Affairs Minister Tony Burke said the Albanese government was 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,” he said.
“This is about backing providers who do the right things and giving them the certainty they need to grow sustainably.”
The Labor government argued that while the new cap was an increase on 2025 levels, it was still 8 percent below the post-COVID peak.
Assistant Minister for International Education Julian Hill said international education was a $50 billion export sector supporting 250,000 Australian jobs.
“It’s the biggest export we don’t dig or drill out of the ground,” he said.
Hill highlighted the government’s focus on Southeast Asia and the provision of housing for students.
“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,” he said.
“We want students to see Australia as a premium destination where they can access high-quality education and a great student experience.”
“The settings that 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,” Minister for Skills and Training Andrew Giles said.
Questions About New Target
The Coalition is taking a cautious approach towards international student numbers, promising to work with the tertiary sector.
Former Opposition leader Peter Dutton had promised to cap international students ahead of the May 2025 election.
Shadow Education Minister Jonno Duniam said the Coalition valued international students and their contributions but sought further explanation from the government about the latest development.
“It is up to the Albanese Government to explain how this new target—of 295,000 new enrolments—is sustainable given that we had over one million course enrolments for international students in 2024 alone,” he said.
“The Albanese Government is continuing to operate an opaque planning system for international education and needs to give all tertiary providers clarity on how it arrived at these numbers while ensuring that there are no losers.”
Shadow Immigration Minister Paul Scarr said the Coalition would consult widely to get the balance right.
“We recognise the importance of the international education sector for our economy and in building people-to-people relationships,” he said.“In setting the number of new student visa places, consultation with the education sector is vital.”
