Australia has announced it will increase the cap on new international student commencements to 295,000 for the upcoming academic year, an approximately 9% rise over the previous limit. This decision, made official on August 5, 2025, comes as part of a broader strategy to support the sustainability and growth of the international education sector while addressing housing pressures and migration concerns.
Education Minister Jason Clare emphasized that the expanded cap recognizes the sector’s role as one of Australia’s top exports-one that generates billions in revenue and sustains 250,000 jobs-and aims to ensure its growth aligns with national priorities. He stressed that “international education doesn’t just make us money, it makes us friends.”
The cap adjustment comes after the previous National Planning Level (NPL) cap of 270,000 new student commencements was imposed starting in 2025. That cap had allocated 145,000 places to public universities, 30,000 to private and non-university higher education providers, and 95,000 to vocational education and training (VET) institutions
Australia’s government also announced that institutions able to demonstrate adequate student accommodation and stronger engagement with Southeast Asian markets would receive priority in receiving enrolment increases under the new higher cap. This approach aligns with Australia’s broader Southeast Asia Economic Strategy to 2040.
While public universities are poised to benefit from roughly a 9% increase in their intake, private and non-university providers are expected to see only modest gains of around 3%, prompting concern among industry groups about equity and transparency in allocation.
University leaders have welcomed the policy. They highlighted the importance of the policy in ensuring Australia can continue attracting top-tier international students in fields such as engineering and STEM, despite ongoing debates over its distribution.
However, critics warn that the cap structure especially its heavier focus on public over private providers could undermine private institutions and regional providers that rely more heavily on international student revenue. In previous debates surrounding the 270,000 cap, university representatives described it as a “handbrake” on growth and warned of potential economic consequences including job losses and reduced research investment. The new target of 295,000 placements signals a recalibration: balancing the imperatives of sustainability, accommodation capacity, and regional engagement without throttling the $50‑$52 billion international education industry.
