Government Maintains Migration Levels, Boosts International Student Intake in Australia

Australia’s federal government has announced it will hold overall migration levels steady while making significant adjustments to the international student intake in 2025. The decision highlights a balancing act between addressing domestic workforce demands and maintaining the country’s reputation as a leading global study destination.

According to the latest update, the Australian migration policy 2025 will continue to support population stability while prioritising sectors experiencing skill shortages. However, the government has also expanded the Australian international student intake 2025, reflecting the growing importance of education exports to the economy.

Key Announcements

• The Permanent Migration Program (PMP) for 2025-26 will remain at 185,000 migrants, the same as the previous year. This continues a downward trend from earlier migration caps of 190,000 in 2023-24 and 195,000 in 2022-23.
  
  
• The National Planning Level (NPL) for international student places will increase from 270,000 in 2025 to 295,000 in 2026, providing an additional 25,000 spots for students planning to study in Australia.

These measures reflect the government’s strategy to maintain a steady migration policy in 2025 while supporting universities reliant on overseas enrolments.

Why the Policy Shift?

1. Labour shortages: By keeping skilled migration at consistent levels, Australia ensures industries have access to talent where domestic supply is lacking.
   
   
2. Education sector recovery: Declining enrolments in pathway programmes and vocational training in Australia have raised alarms, prompting a stronger push to attract foreign students.
   
   
3. Public sentiment: Concerns linking migration to housing and infrastructure pressures have forced the government to avoid sharp increases in permanent migration, even while boosting the student intake.

Impact on Higher Education Sector in Australia

Recent enrolment data highlights the challenge:

• Overall, international student commencements in May 2025 dropped by 15% year-on-year.
  
  
• VET (Vocational Education and Training) commencements fell by 20%.
  
  
• School enrolments slipped 11%.
  
  
• ELICOS (English Language Intensive Courses for Overseas Students) saw a steep 43% decline.
  

To counter these losses, universities will now benefit from exemptions. For example, overseas students transitioning from Australian secondary schools or vocational pathways will not be counted within the NPL cap. Universities can also apply for more places if they meet certain conditions.

Conditions for Universities

To qualify for additional student places, institutions must:

• Increase partnerships and engagement with Southeast Asia, one of Australia’s fastest-growing student markets.
  
  
• Provide clear plans for safe and affordable student housing to accommodate both domestic and international students.

These requirements reflect government efforts to ensure the expansion of international student enrolments in Australia does not worsen housing or infrastructure pressures.

Regulatory Reform Ahead

The government has also launched a review of TEQSA (Tertiary Education Quality and Standards Agency), with consultation open until 17 October. From 2027, the planned Australian Tertiary Education Commission (ATEC) will take over long-term growth planning for higher education.

Additional reforms are also being considered for the VET sector, with a focus on tightening visa integrity and improving pathways for students entering Australia’s workforce.

Industry and Government Reactions

Employer groups and education bodies have welcomed the announcement. The Migration Institute of Australia described the decision as “balanced and sensible,” providing certainty for industries and institutions.

Education Minister Jason Clare emphasised sustainability: “We want growth in international student numbers, but on a more sustainable path.”

Student Migration Global Outlook

With the US facing visa challenges and the UK tightening its Graduate Route for international students, Australia sees this as an opportunity to strengthen its global position. By aligning its migration policy in 2025 with targeted education growth, the government aims to attract students seeking stability, high-quality education, and strong post-study opportunities.

Conclusion

As universities prepare for the study abroad 2025 intake, Australia’s decision to boost international student intake while maintaining migration caps reflects a careful balancing act between economic needs and political pressures. For students, it signals that studying in Australia in 2025 remains an attractive option, with more places available and a government committed to keeping education at the heart of its migration strategy.

The success of this plan, however, will depend on universities’ ability to expand responsibly, provide affordable housing, and maintain academic standards while competing in an increasingly globalised education market.