The Australian government has set the National Planning Level (NPL) at 295,000 new international student spaces for both 2026 and 2027. The NPL regulates the number of foreign students admitted to universities and vocational education and training (VET) providers across the country.
Visa Processing and Fee Adjustments Control Student Intake
Under the NPL system, visa applications for an institution are processed at normal speed until 80% of its allocated new student spaces are filled. Beyond this threshold, visa processing slows to prevent over-enrollment. This approach aims to manage growth sustainably. In addition to this visa processing cap, the government has adjusted student visa fees to further regulate demand.
International Student Commencements Decline
Despite the NPL being set at 295,000, international student commencements are running below this limit. For 2026, commencements are 8% lower compared to 2025 and 13% below 2019 levels, indicating a continuing decline in new enrolments. This trend reflects a drop in visa applications, partly due to higher fees and visa rejections.
Government and Universities Respond to Enrollment Challenges
Minister of Education Jason Clare, Assistant Minister for International Education Julian Hill, and Skills Minister Andrew Giles jointly stated that the freeze of the NPL at 295,000 is accompanied by visa fee adjustments. They acknowledged that commencements are tracking below the NPL for both 2026 and 2027.
Luke
Sheehy, CEO of Universities Australia, said, “Sustainability and integrity matter, and universities support both. Keeping new overseas commencements steady gives the sector something to plan around, but it is a long way from the sustainable, managed growth the government promised two years ago.” He warned that current policies making Australia more expensive and difficult for genuine students risk causing the sector to fall short of targets, endangering a $55 billion export sector that supports 250,000 jobs.
Sheehy added, “Many universities, particularly in regional and outer suburban Australia, are ready, willing and able to welcome more international students. A big number
on paper means little if the policies behind it make it harder to deliver in practice. Unless the broader settings change, the 2027 allocation risks being just another number – not a plan that delivers the skills, jobs and growth Australia needs.”
Impact of Policy on Institutions and the Education Sector
Institutions face difficulty meeting their allocated new student places due to declining application volumes. Visa processing slows for universities exceeding 80% of their targets, limiting their ability to increase intake. Higher student visa fees and increased rejection rates contribute to waning international demand. These constraints have led to concerns about the future growth of Australia’s international education sector
and its contributions to the economy and workforce development.
