Australia is set to increase its National Planning Level (NPL) for international student commencements from 270,000 in 2025 to 295,000 in 2026, representing a 9 % rise but remaining 8 % below the post-COVID peak.

Under the new rules, two-thirds of places are reserved for universities, and one-third allocated to vocational education and training (VET) providers. Public universities can qualify for extra slots by demonstrating stronger engagement with Southeast Asia or expanding student housing infrastructure.

Students transitioning from Australian secondary schools, pathway colleges, or TAFE into publicly funded universities are exempt from the cap, streamlining educational progression for domestic pathways. Policy makers frame this calibrated increase as a balance between economic benefit and infrastructural strain. International education contributes ~US $33–50 billion annually to Australia’s economy and supports 250,000 jobs but the government seeks sustainable growth amid housing shortages.

While the increase has been welcomed for restoring sector stability, independent colleges have raised concerns over slower growth and inequitable allocation between providers. Critics warn that enduring uncertainty could risk Australia’s competitive edge amid choices from students considering Canada, the UK, or New Zealand.