In a strategic move to attract more students from Southeast Asia, the Australian government has announced an increase in the cap on higher education and vocational training enrolments for international students for the 2025-26 academic year. The National Planning Level (NPL) for new enrolments has been raised from 270,000 to 295,000 an addition of 25,000.
Assistant Minister for International Education Julian Hill said the move reflects the government's balanced approach to managing the international student market while encouraging sustainable growth.
"This Government remains committed to sensibly managing the size and shape of the on-shore student market and supporting sustainable growth, especially to welcome more students from Southeast Asia and where accompanied by new housing," Mr Hill said.
"We want students to see Australia as a premium destination where they can access high-quality education and a great student experience."
Sectoral Allocation For 2025-26
Under the revised cap, higher education institutions, both public and private, will share 196,750 student places, while vocational training providers will be allocated 98,250 spots.
The Department of Education's guidelines state that public universities will be allowed to increase their NPL intake by up to 9 per cent, while for-profit private universities will be limited to a 3 per cent increase. All institutions will retain at least the same number of student places as allocated in 2024-25.
Public universities and private not-for-profit providers may also apply for additional seats by demonstrating progress in two key areas:
Stronger engagement with Southeast Asia, aligning with Australia's 2040 regional strategy; and
Development of safe and affordable housing for students.
Notably, international students progressing to publicly funded universities from Australian secondary schools, pathway providers, or TAFEs will be exempt from the NPL restrictions.
Addressing shortfalls in vocational education and training (VET) sector
The revised NPL comes amid signs of underutilisation in certain sectors. According to Department of Home Affairs data, only 234,040 student visas were granted to offshore applicants in 2024-25-well below the 270,000 cap. This figure includes exemptions such as students in ELICOS (English Language Intensive Courses for Overseas Students) and K-12 schooling.
The government has indicated that a new directive will soon replace MD111 to align visa policy with the updated NPL for 2025-26.
