August 12, 2025 By

One Year into Australia’s International Student Reforms

We have prepared an overview of Australia’s international student landscape over the past year, and it may be deeply concerning.

Visa Grants & Enrollment Trends

Between October 2023 and August 2024, Australia issued just 298,000 study visas, a 38% drop from the same period the previous year.
Nonetheless, the total international student population continued to grow, reaching 853,045 in 2024, largely due to existing visa holders and commencements.
On June 30, 2024, there were 608,262 international student visa holders residing in Australia, a 7% increase from the year prior.

Visa Approval Rates & Policy Shifts

Approval rates have dropped sharply. In the second half of 2023 (to December), only 80.9% of student visa applications were granted, the lowest since 2005‑06.
Key reforms introduced in between 2024 and 2025 included a visa fee increase (to $2,000), tighter English test and financial requirements, and new age limitations for Temporary Graduate visas.
Ministerial directions have also prioritised applications based on “risk”, contributing to refusal rates climbing from around 5% (higher ed) to over 40% for VET and ELICOS.

Impact on Providers and Students

The caps and rising visa scrutiny have had tangible consequences: some training providers reported enrolment cuts of up to 60%, leading to layoffs. Several key providers closed their doors.

Looking Ahead to 2026 and Beyond

The Albanese government has increased the international student cap to 295,000 new placements in 2025, up from around 270,000 in 2024, with a stated focus on sustainable growth and a stronger intake from South-east Asian markets.
At the same time, a significant cohort of temporary visa holders, including more than 100,000 COVID visa and Working Holiday visa holders, is expected to depart by the end of 2025.
In the VET and ELICOS sectors, enrolments have fallen by as much as 49%, eroding the traditional pathway into higher education courses and impacting long-term student pipelines.

What This Means for Stakeholders?

More Competition, Higher Stakes: With stricter criteria and caps, the pathway to studying in Australia has become more competitive.
Strategy Is Everything: Timing, application strength, English scores, and financial proof, these elements now determine success more than ever.
Stay Agile: Keep abreast of changing caps, fee structures, and policy shifts; these may affect planning, especially for alternative or regional pathways.

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