Australia Keeps International Student Cap at 295,000 for 2027
Australia will hold its target for new international student commencements at 295,000 for 2027, unchanged from the previous year, despite a continued decline in visa applications under stricter migration policies. The decision, announced by the Australian government, aims to provide stability for the education sector while managing migration levels.
Public universities will continue to receive the largest share of commencements, while allocations for vocational education and training, private higher education providers, and other institutions will remain broadly in line with 2026 levels. The government confirmed that all active international education providers will receive at least the same student allocation in 2027 as they did in 2026, preserving higher quotas granted to regional universities last year.
Why Did Australia Keep the Cap Unchanged?
In a joint press release, Minister for Education Jason Clare, Minister for Skills and Training Andrew Giles, and Assistant Minister for International Education Julian Hill said maintaining the National Planning Level would provide stability and certainty while ensuring Australia's international education sector remained resilient, high quality, and globally competitive.
Clare stated: 'International education is an incredibly important export industry for Australia, but we need to manage it sustainably. This is about making sure international education supports students, universities and the national interest.'
What Groups Are Exempt from the Cap?
Under the government's TAFE at the Heart policy, Technical and Further Education students will continue to be excluded from the cap. Other priority groups, including students from Pacific island countries, Timor-Leste, and recipients of Australian government scholarships, will also remain exempt and receive priority visa processing.
How Have Visa Policies Affected Applications?
The decision comes as student visa applications and commencements continue to soften following a series of migration reforms. The government has tightened visa assessment rules, increased financial requirements for applicants, and stepped up scrutiny of education providers to reduce net overseas migration. Current tracking indicates international student commencements are on track to be below the cap for both 2026 and 2027, with commencements in 2026 down 8% compared to the same period in 2025, and 13% lower than 2019.
Officials expect actual student commencements in 2027 to remain below the planning level, with existing providers not expected to receive lower allocations than this year.
What Are the New Visa Fees?
The announcement follows a 25% increase in student and temporary graduate visa fees, which raised the Subclass 500 student visa application fee to A$2,500 (US$1,734), the highest among the Big Four study destinations. The changes also introduced a separate A$2,050 fee for standalone English Language Intensive Courses for Overseas Students, reduced fees for applicants from ASEAN countries and non-award courses, while retaining lower fees for students from Pacific nations and Timor-Leste.
Assistant Minister Hill said: 'The Government will not back off from managing the size and the shape of the onshore international student market and ongoing moderation in student numbers towards a more sustainable sector.'
How Does This Affect Australia's Competitiveness?
International education remains one of Australia's largest export industries, contributing tens of billions of dollars annually. However, universities have warned that stricter visa policies and rising costs could erode Australia's competitiveness against rival destinations such as Canada and the United Kingdom. Universities Australia Chief Executive Officer Luke Sheehy said: 'If the government keeps making Australia more expensive and more difficult for genuine students to choose, we're going to fall short. That's bad for our sector and Australia. It means fewer skilled workers, weaker productivity and a $55 billion export sector supporting 250,000 jobs put at risk.'
For Eswatini students considering study abroad, these changes underscore the importance of careful planning and understanding of destination country policies. Australia remains a popular choice, but rising costs and stricter rules may prompt some to explore other options.
