Australia Sets Cap on International Student Enrolments for 2025

Australia’s government has announced a new policy limiting international student enrolments for 2025. The National Planning Level (NPL) will restrict new commencements to 270,000 across higher education and vocational education sectors, excluding schools and standalone English-language providers.

The NPL aims to bring international student numbers back to pre-pandemic levels, with the government asserting that it will restore industry balance and manage growth effectively. However, leaders in the higher education sector have strongly criticized the move. They warn that the cap, along with recent changes to immigration rules, will damage the industry and the broader Australian economy for years to come.

Under the new policy, public universities will receive approximately 145,000 of the capped student places, reflecting enrolment levels similar to those in 2023. Universities with high international student numbers or rapid growth may face stricter caps, while institutions with lower international ratios might benefit from increased allocations. The vocational education sector will receive about 95,000 places, with a significant reduction from current levels.

The NPL excludes higher degree research programmes, standalone English-language providers, and certain scholarship students. It replaces the previous Ministerial Directive 107, which had categorized universities by risk and affected visa processing times. Directive 107 led to a decline in visa approvals and negatively impacted many educational institutions.

Professor Andrew Norton of Australian National University explains that the new caps will limit growth for universities with high international enrolments to 50% of pre-2023 increases. This is expected to impact prestigious institutions like the University of Melbourne and the University of Sydney, which may have to cut their student intake despite high demand.

The higher education sector is a major contributor to Australia’s economy, generating nearly AUD$50 billion and supporting around 250,000 jobs. Critics argue that the NPL will worsen funding gaps and negatively affect other sectors reliant on international students. Despite government assurances, many view the cap as a detrimental move that could undermine Australia’s global reputation and economic stability.