Australia increases foreign student visa cap to 295,000 - Here's how it will benefit Indian students

The Australian government made an announcement on Monday (Aug 4), saying that they will raise the number of international students they allows into the country by 9 per cent in 2026, bringing the total to 295,000 (current cap - 270,000). The Australian government also added that they will give priority to students from Southeast Asia. This decision comes a year after Australia limited the entries of foreign students due to high migration. According to Reuters, in 2026, 25,000 more placements will be offered for the universities with applicants from Southeast Asia being prioritised.

Universities may receive more student spots if they can show that they can provide safe and secure housing and increase enrolments from Southeast Asian countries. The move is a part of Australia’s plan to strengthen ties with Southeast Asia and reduce its economic reliance on China.

Australian International Education Assistant Minister, Julian Hill, told national broadcaster ABC, that it is important for Australia to build lasting connections with its Southeast Asian neighbours by hosting their top students.

The cap does not apply to students who move from Australian high schools to public universities or TAFE (technical and further education).

Why international student numbers were limited in 2024

In 2024, the Labour government set a cap of 270,000 international students to reduce the migration levels. It also increased student visa fees to A$2,000 (around ₹1.14 lakh) and slowed down visa approvals. This was done to control the rising cost of housing, which becomes a major concern before the May 2024 elections.

Why Australian government policies are changing now

Education plays a key role in Australia as it is Australia’s fourth-largest export and it brings a significant amount of money for the government. International students pay nearly double what local students do and help to support universities financially. The education sector adds over A$50 billion to the economy each year and provides about 250,000 jobs.

Last year, Australia’s top eight universities criticized the cap on foreign students, saying they rely heavily on the fees paid by international students. At the University of Sydney, over 40 per cent of university's income comes from international students.

China and India are currently the biggest sources of international students in Australia. Australian Education Minister, Jason Clare, said that the education sector is vital to the economy, but its growth must be controlled to make it sustainable in the long term.

“International education doesn’t just make us money, it makes us friends. This is about making sure international education grows in a way that supports students, universities and the national interest," Clare said.

“The new planning level gives the sector certainty to continue delivering a high-quality educational experience to international students, while addressing national priorities,” he said, according to reports.