New National Planning Level for International Students in 2025/26
The Australian government confirmed its National Planning Level (NPL) for international students for the 2025/26 fiscal year on 4 August 2025 and announced that the new NPL will be 295,000 student places.
This represents an increase of 25,000 places compared with the 270,000 allocation for 2024/25. However, it remains 8% below the immediate post-COVID peak, highlighting the government’s cautious approach to international education growth.
Assistant Minister for International Education Julian Hill noted that the government aims to balance growth with sustainability:
“We want students to see Australia as a premium destination where they can access high quality education and a great student experience. This government remains committed to sensibly managing the size and shape of the on-shore student market, with a particular focus on welcoming more students from Southeast Asia and supporting providers who deliver safe and affordable student housing.”
Private providers will at least retain their 2024/25 allocations. Public universities and private not-for-profits may apply for additional places by showing alignment with two national priorities:
- Greater engagement with Southeast Asia (aligned with Australia’s 2040 regional strategy).
- Provision of safe and affordable student housing.
Another change exempts students transitioning into public universities from Australian secondary schools, pathway colleges, or TAFE from NPL limits.
A new ministerial direction is expected to replace MD111 shortly, reflecting the updated 2025/26 allocations. However, the recent data from the Department of Home Affairs suggests mixed outcomes:
- In 2024/25, only 234,040 offshore visas were granted, which is well below the 270,000 NPL.
- Higher education performed relatively well, with ~170,000 visas granted (close to its 176,000 allocation).
- VET lagged dramatically, with only 11,572 visas granted against an allocation of 94,000. Of these, just 8,887 went to new students, far below the pre-pandemic level of 25,727 in 2018/19 and the 2022/23 peak of 38,415.
- Independent ELICOS also struggled: only 15,020 visas were granted in 2024/25, compared with 60,299 in 2022/23.
- The additional 25,000 new overseas student places are very much allocated to the public universities.
In short, higher education has remained resilient, maintaining enrolment well above pre-pandemic levels. However, rising visa fees, higher rejection rates, and processing delays have severely impacted VET and ELICOS.
A plunge in the issuance of student visas has largely bypassed Australian higher education, with overseas demand for university degrees remaining well above pre-pandemic levels while collapsing in other sectors.
The 2025/26 NPL offers modest growth and stability for higher education but does little to address the ongoing struggles of the VET and ELICOS sectors. While universities are positioned to benefit, private providers face stricter limits, and the broader international education ecosystem continues to feel the pressure of Australia’s more restrictive visa and policy settings.
In conclusion, the Australia’s private VET and English language providers are facing an uphill battle to keep their doors open.
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