Australia Raises Foreign Student Cap to 295,000 in 2026

Australia will increase its cap on foreign students by 9% to 295,000 places in 2026, prioritising applicants from Southeast Asia, the government announced on Monday.

The cap was introduced last year to control record migration that contributed to soaring housing prices, with 270,000 spots allocated for 2025. An additional 25,000 places will be added in 2026 as the policy successfully curbed uncontrolled international student growth.

“This approach ensures international education grows sustainably to support students, universities, and national interests,” said Education Minister Jason Clare.

In the 2023 financial year, Australia issued nearly 600,000 student visas, with China and India remaining the largest source countries.

Alongside the cap, the government more than doubled visa fees for foreign students in 2024 and vowed to close loopholes that allowed repeated visa extensions.

International Education Assistant Minister Julian Hill said these tough measures are bearing fruit and enabling a modest increase in the student cap. “The numbers were growing out of control,” Hill told the ABC.

Approximately two-thirds of student places will go to universities and one-third to vocational training. Public universities must demonstrate access to safe, secure housing and increase recruitment from Southeast Asia to receive higher allocations.

Hill emphasised the importance of attracting students from Southeast Asia to build Australia’s future influence and strengthen regional ties, a key focus of Prime Minister Anthony Albanese’s government amid efforts to reduce economic reliance on China.

Universities Australia welcomed the measured increase. CEO Luke Sheehy said, “Universities have called for growth in this critically important sector, and the government has honoured this.”

International education is one of Australia’s top services exports, contributing over A$51 billion ($33 billion) to the economy in 2024.