Australia is set to welcome 295,000 international students in 2026—a 9% increase from the previous cap—following Education Minister Jason Clare’s announcement of a new National Planning Level. The move adds 25,000 placements and replaces the restrictive Ministerial Direction 111, which had slowed visa processing and imposed quotas.

To qualify for additional student allocations, universities must meet two key criteria:
- Provide secure student housing for both domestic and international students
- Strengthen engagement with Southeast Asian nations, such as Indonesia and Thailand

While the sector has welcomed the increase, concerns remain over housing delays and visa processing backlogs. Industry leaders say Australia can benefit from global uncertainty in competing markets like the U.S., UK, and Canada, positioning itself as a more stable destination for international education.

The changes aim to balance growth with sustainability and will be overseen by the forthcoming Australian Tertiary Education Commission, expected to bring long-term stability from 2027.