The introduction of a new ministerial directive by the Australian government has significantly revived international enrolment caps. This action follows the unsuccessful passage of the contentious ESOS amendment bill, which called for institutional and national limits on overseas enrollment.
The old Ministerial Direction 107 (MD107), which was heavily criticized for its faulty methodology and preferential treatment of “low-risk” institutions, has been replaced by the current directive, Ministerial Direction 111 (MD111). Visa denial rates significantly increased as a result of MD107, especially for providers deemed to be at higher risk.
Applications for offshore student visas from institutions that have not yet met their prioritization level will receive priority processing under MD111. Visa processing will resume at regular priority after this threshold is met. In actuality, this means that up to 80% of the indicative caps set by the ESOS amendment bill will be processed for visa applications.
Additionally, a national cap of 270,000 student visas for 2025 is introduced by the new regulation. The national information system PRISMS will be used to administer the indicative caps that will apply to institutions. An institution’s visa applications will be given a lesser priority after it hits the 80% threshold, which will essentially slow down the processing of additional applications.
The replacement of MD107, which was viewed as a fatally flawed process, has been warmly received by Australia’s overseas education sector. It is anticipated that the new guideline would give students and institutions greater clarity and confidence. The indicated caps’ implementation and possible effects on visa processing timelines and rejection rates, however, remain rather unclear.
Phil Honeywood, the CEO of the International Education Association of Australia, responded to the new order by saying that the government had consulted stakeholders, which was “the right thing” to do. He went on to say that the new order would lessen the effects of MD107 ² and treat all providers more fairly. An important shift in Australia’s foreign education strategy has been brought about with the implementation of MD111. The new rule offers greater clarity and predictability, but in the upcoming months, its implementation and effects on the industry will be closely monitored.
