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Last year, the Albanese government increased its 2026 international student planning level by 25,000, bringing it to 295,000.
However, it was a flexible cap, with Ministerial Direction (MD) 115 permitting universities to exceed their caps by 15% before the Department of Home Affairs deprioritised visa processing for new applicants associated with that institution.
For example, if a university’s allotment is 10,000 spots, it may admit up to 11,500 students without penalty. If universities reach 11,500, the Department of Home Affairs will slow visa applications for their students.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.