Australia is relaxing its foreign student cap for 2026 by 9% — paving the way for another 25,000 people to study in the country. The policy change is likely to benefit Indians as the country makes a strategic pivot to deepen regional ties and reduce economic reliance on China. The Australian government will prioritise applicants from Southeast Asia for these additional spots and grant an exemption to students transitioning within the country.
The modest relaxation comes after two years of stringent efforts to bring down student intake numbers to a sustainable level. Australia had seen its foreign student population soar close to the one million mark ahead of the COVID-19 pandemic in 2019. The number fell during the ensuing years before rising to fresh highs in 2023 — prompting two years of strengthened regulations and a sharp increase in visa fees.
How does the expansion work?
The updated policy will allow 295,000 foreign students to take admission at various Australian institutions — up from 270,000 in 2025. The cap is divided on the basis of university type — with up to 145,000 new international pupils admitted to public universities. It allows for up to 95,000 admissions with Vocational Education and Training providers and 30,000 spots at private universities. Institutions seeking to increase their quota above 2025 allocations must demonstrate sufficient student housing and strong partnerships — especially with Southeast Asia.
The modest increase is still a far cry from the nearly 600,000 student visas granted by the country in 2023. Australia had imposed a stringent foreign student cap in 2024 and doubled student visa fees in order to curtail “out-of-control” growth in international student intake.
Indian students in Australia
Recent data suggests that India is the second-largest source country for international student enrollments in Australia — with around 1.32 lakh currently studying in the country. Approximately 122,000 to 133,000 Indian students head to Australia every year for higher studies.
Visa requirements have also become more strict in recent years — with fees rising to AUD 2,000. Candidates are also required to furnish higher English language test scores and stricter proof of funds.