Overview of Changes to the International Education Industry in 2025
The international education industry in Australia underwent significant transformations in 2024 and 2025, driven by regulatory updates, shifting student expectations, and technological advancements.
We have prepared a list of key changes:
Key Changes Introduced in 2024 and 2025
- Changes to Student visa processing
Ministerial Direction 111 (MD111), which took effect on 19 December 2024, replacing the previous MD107. This direction applies to on-hand and new offshore Student visa applications (Subclass 500) and establishes a priority system for processing these applications.
Under Ministerial Direction No. 111, the Australian Government has introduced priority levels for assessing student visa applications lodged from offshore:
- Priority 1 – High: Faster processing
- Priority 2 – Standard: Regular processing
Your processing priority level does not affect the outcome of your visa application—only how quickly it’s processed.
Priority 1 Includes:
- School sector students and short-term exchange participants
- Standalone ELICOS students
- TAFE students (including select CDU programs)
- Students in recognised pilot training
- PhD and postgraduate research students
- DFAT, Defence, and government scholarship holders
- Students in transnational education programs
- Applicants from Pacific & Timor-Leste
- Applicants with a child under 18 as a dependent
Priority 2 Includes:
- Higher Ed and VET students whose providers have reached their prioritisation cap
- All other applicants who don’t meet the Priority 1 criteria, including subsequent entrants without a minor dependent
- Enhanced Genuine Temporary Entrant (GTE) Requirements
- In response to concerns about visa misuse, the Genuine Student (GS) criteria were revised to include stricter assessments of applicants’ intentions and ties to their home countries.
- Education providers and agents were required to adopt more rigorous pre-screening processes to ensure applicants align with the new guidelines.
- Applicants must submit a comprehensive GS letter explaining their reasons for studying in Australia, and how the course help them in the future – justify their expense associated with study and travel to Australia
- Updates to Post-Study Work Rights
- Graduate certificates are no longer considered degrees.
- Graduate diplomas only count if an applicant completes them right after a related bachelor’s, master’s, or PhD program.
- Example: If the applicant finishes a Bachelor of Business and immediately starts a Graduate Diploma in Marketing, the diploma will count.
- No more Australian Study Requirement (ASR):
- Before, applicants had to meet the Australian Study Requirement (ASR). Now, that requirement has been removed. This makes it easier for graduates to apply.
- New academic rules:
- Clause 485.231 explains that only a specific degree at a recognised institution meets the visa requirements.
- Focus on regional areas:
- Applicants for a second or third Subclass 485 visa in the PHEW stream, must live, work, or study in designated regional areas.
- Example of regional areas: Cities like Adelaide, Darwin, and regions in regional New South Wales or Victoria.
- The cost to apply for a Subclass 485 visa went up from 1 July 2025 to $2,300
- Changes to Overseas Worker Sponsorship Program from 7 December 2024
CSOL will apply to the Core Skills stream of the new Skills in Demand visa, which will replace the Temporary Skill Shortage (subclass 482) visa. The CSOL will also be relevant to the Direct Entry stream of the permanent Employer Nomination Scheme (subclass 186) visa.
Starting 1 July 2025, the TSMIT has increased from $73,150 to $76,515 per annum, as announced by the Department of Home Affairs (Home Affairs Update, 2024). This change reflects adjustments for inflation and wage growth and aims to maintain integrity in the employer-sponsored program.
- Changes in English Language Testing
Temporary Graduate visa (TGV)
- The minimum score required for a TGV from IELTS test score increases from 6.0 to 6.5 (or equivalent), with a minimum score of 5.5 for each component of the test (reading, writing, speaking and listening).
- The test validity window for a TGV decreases from 3 years to 1 year. TGV applicants now need to provide evidence that they have completed an English Language test within 1 year immediately before the date of the visa application.
Student visa
- The minimum score required for a Student visa from an IELTS test score increases from 5.5 to 6 (or its equivalent).
- The minimum score required to undertake a packaged ELICOS from IELTS increases from 4.5 to 5.0.
- For students studying English only through ELICOS, there will be no change.
- The test score required for students undertaking university foundation or pathway programs that deliver reputable English language training will be IELTS 5.5 (or equivalent).
- Student visa – Increase in financial capacity requirement – 10 May 2024
The amount of money that Student and Student Guardian visa applicants need to have to be eligible for the visa increased to $29,710 for an individual student. This represents 75 per cent of the minimum wage, which is set annually by the Fair Work Commission.
Summary of new funding evidence requirements for student visa applications from 10 May 2024:
- Primary applicant: AUD29,710
- Spouse: AUD10,394 (35%)
- Child: AUD4,449 (15%)
- Annual School fees AUD13,502
- Course fees for the first 12 months, less any fees already paid
- Travel expenses
7. Student and Student Guardian Visa Application Charge (VAC) increase – 1 July 2025
Starting 1 July 2025, the Student Visa (subclass 500) and Guardian Visa (Sc 590) application fee increased to AUD $2,000. Secondary applicants (e.g. spouses, children) will pay $1,225 or $400 respectively.
8. Restricting onshore Student visa hopping – 1 July 2024
Temporary Graduate, Visitor and Maritime Crew visa holders are no longer able to apply for a Student visa while in Australia. Temporary Graduate Visa holders should depart Australia, or find skilled jobs and/or other visa pathways, including those that may lead to becoming permanent residents of Australia. Visitor visa applicants who intend to study will be required to apply for their Student visa from offshore. Student visa applicants genuinely intending to pursue studies in Australia can apply outside Australia. Those who meet the criteria will be granted a Student visa.
Holders of these visas will no longer be allowed to apply from within Australia:
- Temporary Graduate (subclass 485)
- Visitor (subclass 600)
- Electronic Travel Authority (subclass 601)
- Medical Treatment (subclass 602)
- eVisitor (subclass 651)
- Maritime Crew (subclass 988)
9. Onshore applicants must provide COE
Onshore applicants must provide a Confirmation of Enrolment (CoE) at the time of application, as reported by the Department of Home Affairs will implement a significant change for individuals applying for a Student visa from within Australia.
This change applies to visa applications lodged on or after 1 January 2025. Applications submitted before this date using a Letter of Offer will not be affected.
Conclusion
The changes implemented in 2024 and 2025 brought about significant challenges, and in some cases, severe consequences for education providers, agents, and international students. By bypassing the standard process raises serious concerns regarding transparency, legal compliance, and the equitable treatment of international students under Australia’s immigration policies.
Education Providers must invest in robust compliance systems and enhance student support services to meet the updated regulatory requirements. Additionally, embracing digital transformation is essential for maintaining competitiveness in a rapidly evolving sector.
Education Agents now face increased scrutiny and are required to align their recruitment practices with higher ethical standards. Expanded training and certification programs have been introduced to help agents meet these expectations and ensure quality service delivery.
International Students need to carefully consider their choice of course, the timing of their applications, and the preparation of comprehensive supporting documents to strengthen their visa applications and align with the new regulatory landscape.
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