Australia International Students Cap Stays at 295,000 for 2027
Table of Content
Key Points
- Australia has retained its National Planning Level (NPL) of 295,000 new international students for 2027.
- The target remains unchanged from 2026 despite falling visa applications and student commencements.
- The government says the policy supports sustainable growth across Australian universities and the VET sector.
- Student commencements in 2026 are tracking 8% lower than the same period in 2025.
- Higher Australia student visa fees and stricter visa approvals continue to discourage applicants.
- Visa application fees now stand at AU$2,500 for student visas and AU$5,750 for post-study work visas.
- Chinese student applications are declining, while visa refusal rates remain high for applicants from India, Bangladesh and Nepal.
- Universities Australia has warned current policies could make it harder to achieve the government's enrolment targets.
Australia International Students Target Frozen at 295,000 for 2027 as Visa Demand Falls
Australia will maintain its intake target of 295,000 Australia international students in 2027, keeping the National Planning Level (NPL) unchanged for a second consecutive year despite a continued decline in visa applications and overseas student commencements.
The Australian government said the existing framework has helped bring Australia international students numbers back to more sustainable levels after rapid post-pandemic growth. The National Planning Level applies to both Australian universities and private higher education providers, while allocating separate places for the vocational education and training (VET) sector.
Under the NPL, education providers can have student visa applications processed at standard speed until they reach 80% of their allocated places. Once that threshold is crossed, Australia student visa processing slows, discouraging institutions from recruiting beyond their allocation.
Student Demand Continues to Weaken
While the government has retained the 295,000 target, official data indicates enrolments are unlikely to reach that figure. According to ministers, international student commencements in 2026 are currently tracking 8% below the same period last year and 13% below 2019 levels.
The decline reflects a broader slowdown in demand to study in Australia, driven by higher visa costs, stricter immigration policies and increased visa refusal rates.
Australia has also significantly increased the cost of applying for a student visa. The Australia student visa application fee now stands at AU$2,500, while post-study work visa applications cost AU$5,750, making them among the most expensive globally. These fees are non-refundable even if an application is rejected.
Government Says Policy Supports Sustainable Growth
Education Minister Jason Clare said international education remains one of Australia's most valuable export industries but must be managed responsibly.
Assistant Minister for International Education Julian Hill added that the government remains committed to reshaping the sector by limiting unsustainable growth while continuing to welcome genuine students who want to study in Australia.
Skills Minister Andrew Giles said maintaining stable allocations would provide certainty for the VET sector and help providers continue delivering workforce-focused training.
Universities Warn Policies Are Limiting Growth
Despite the unchanged target, Universities Australia argued that current immigration settings are making it increasingly difficult for institutions to attract overseas students.
Chief Executive Luke Sheehy said many Australian universities, particularly those in regional and outer suburban areas, have the capacity to enrol more students but are struggling because Australia has become more expensive and difficult for genuine applicants.
He warned that if the current policy settings remain in place, the government risks missing its own enrolment target, potentially affecting a sector worth AU$55 billion annually and supporting around 250,000 jobs.
Several Student Categories Remain Exempt
The National Planning Level does not apply to several groups of students, including those enrolled in schools, standalone English language (ELICOS) programmes, higher degree research, exchange programmes, TAFE, certain VET courses at dual-sector public universities, scholarship recipients, students from Pacific nations and Timor-Leste, and students transferring after provider closures.
The government also confirmed that no education provider covered by the National Planning Level will receive a lower allocation in 2027 than it did in 2026.
Although Australia has maintained its intake target, the combination of rising costs and stricter visa settings suggests fewer Australia international students may choose to study in Australia, raising fresh questions about whether the country's higher education sector can achieve the government's long-term enrolment goals.