Labor quietly reverses course on international student numbers

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Last year, the Albanese government increased its 2026 international student planning level by 25,000, to 295,000.

However, it was a loose cap only, with Ministerial Direction (MD) 115 allowing institutions to exceed their caps by 15% before the Department of Home Affairs would deprioritise visa processing for new applicants linked to that institution.

MD 115

For example, if a university’s allocation is 10,000 places, it could recruit up to 11,500 students without penalty. If universities exceed 11,500, the Department of Home Affairs would slow down 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.