Australia Raises Student Cap, Shifts to Southeast Asia

Australia will increase its international student intake cap from 270,000 in 2025 to 295,000 in 2026, representing a 9% rise after a period of tighter migration controls. The policy includes exemptions for students progressing from Australian schools or recognized pathways and requires public universities seeking larger quotas to prove adequate student housing and regional engagement. Prioritization will be given to students from Southeast Asia to diversify sources and reduce reliance on China. The cap will operate as a 'soft cap,' with slower visa processing for institutions nearing their allocation, and stricter visa requirements and higher fees remain in place. Despite the higher cap, actual enrolments may not reach the limit due to other deterrents. International education continues to be a key economic sector, contributing over A$51 billion annually, as Australia positions itself as a more open destination compared to the US, UK, and Canada.