Key Takeaways:
- The proposed legislated cap on international students did not proceed, but Australia continues to manage international education growth through planning levels and visa processing priorities.
- Government settings can affect how quickly international student applications are processed and how providers plan future commencements.
- CRICOS RTOs should monitor changes to enrolment settings, visa priorities and regulatory requirements before making growth decisions.
- New CRICOS registrations and course additions may be subject to temporary restrictions, exemptions or revised application settings.
- Providers can reduce reliance on international enrolments by strengthening domestic delivery, reviewing their course mix and exploring other sustainable growth opportunities.
July 2026 Update: Managed Growth Replaces the Proposed Cap on International Students
Australia’s international education policy has changed considerably since the original cap on international students was announced in 2024. The ESOS Amendment Bill did not proceed, so the proposed power to impose legislated provider-level enrolment limits was not introduced through that bill.
The government has instead adopted a managed-growth model. This approach combines National Planning Levels, indicative provider allocations and offshore student visa processing priorities to influence how international enrolments are distributed across higher education and VET.
The 2026 National Planning Level
The National Planning Level for 2026 was set at 295,000 new overseas student commencements. This is 25,000 higher than the 2025 planning level of 270,000 and reflects a shift from the originally proposed cap towards controlled sector growth.
The planning level applies across higher education and vocational education and training. However, it should not be interpreted as a direct legal cap applied equally to every education provider or every student visa application.
Student Visa Processing Remains Part of the System
Student visa processing priorities continue to support the managed-growth framework. These settings determine the order in which offshore applications are processed based partly on provider enrolment levels and government planning settings.
They do not change the visa criteria that students must meet. However, processing priority can still affect recruitment timelines, commencement planning and the experience of prospective international students.
ASQA Suspends Most New CRICOS Applications
A separate policy introduced in May 2026 has more immediate implications for RTOs seeking to enter or expand in the international education market. From 19 May 2026, ASQA suspended most:
- Applications for new CRICOS provider registrations
- Applications to add new courses to an existing CRICOS registration
The suspension is scheduled to remain in place until 19 May 2027. Valid applications lodged before the commencement date will continue to be assessed, while limited exemptions apply to certain providers, replacement training products and applications involving already approved courses.
What This Means for CRICOS RTOs
Existing CRICOS RTOs should base future planning on their approved courses, current allocations and student visa processing settings rather than the original 2024 proposal. Providers affected by the temporary application suspension may also need to strengthen domestic delivery, broaden their course mix or explore how to grow beyond international enrolments.
October 2025 Update: Cap Legislation Delayed Amid Changing International Education Policies
Adjusted Student Intake Limits
In August 2025, the government updated its National Planning Level (NPL) for new international student commencements, increasing the proposed limit from 270,000 to 295,000 for 2025–2026. Around 196,750 places were designated for higher education providers, while 98,250 were allocated to the vocational education and training (VET) sector. The 9% increase signalled a move toward measured expansion while maintaining a focus on managing housing and infrastructure pressures.
Falling Commencement Rates
Even with the raised cap, international student commencements in 2025 began to decline. By July 2025, the number of commencements had dropped roughly 16% compared to 2024, with enrolments in English Language Intensive Courses for Overseas Students (ELICOS) plunging by nearly 40%.
However, the Department of Education’s Progress Against 2025 Indicative Allocations report suggested that Australia remained positioned to reach—or slightly surpass—the revised quota, projecting outcomes of up to 102% of the total allocation.
Changes to Visa Policy and Application Fees
The government has since introduced Ministerial Direction 111, further aligning student visa processing with the NPL framework and new integrity measures. Alongside this, in July 2025, the student visa application fee rose to AUD 2,000, drawing widespread criticism from sector representatives such as IEAA, English Australia, and ITECA. These organisations urged the government to reconsider the increase, particularly for short-term programs like ELICOS.
Sector-Wide Implications
These policy shifts have produced mixed outcomes across the education sector. While universities and major institutions monitored allocation decisions closely, non-university providers expressed growing concern over potential limitations. The English language sector was among those most affected, with some providers forced to close following significant enrolment declines.
Although commencements slowed, the overall international student population in Australia has remained relatively strong, suggesting that the full impact of these reforms will likely emerge gradually in the years ahead.
JUST IN: Department of Education Announces Cap on International Students
The Australian government has announced a 270,000 cap on international students in 2025, bringing numbers back to pre-pandemic levels. The new National Planning Level (NPL) aims to redistribute international enrolments across the higher education landscape and create a system that benefits education providers equally.
Education Minister Jason Clare stated that the cap on international students would be made up of approximately 145,000 new starters for publicly funded universities and 95,000 for vocational institutions in 2025. VET providers with historically higher proportions of international students will have reduced enrolment allocations, encouraging them to diversify their student bodies.
The cap is limited to “new international student commencements”, referring to students starting their first course at a particular provider. Once a student takes another course with the same provider, they are no longer considered a new student. The following are exemptions to the cap:
- School students
- Postgraduate research students
- Students enrolled in standalone English language courses
- Scholars sponsored by the Australian government or key partner foreign governments
- Students under twinning arrangements where courses are partly completed offshore
- Students from the Pacific and Timor-Leste
For more information, you can read Education Minister Jason Clare’s full media release here.
What These Changes Mean for CRICOS RTOs
In light of recent student migration policy changes, the rumour mill had gone into overdrive with speculations of a 40% cap on international students, derived from 2019 (which was 225,375 according to NCVER). Education Minister Jason Clare refuted the cap, but the confirmed limit (95,000) is not far off from initial speculation (40% of 225,375 enrolments in 2019 is 90,150).
While these changes create a challenge for CRICOS RTOs, they also present an opportunity to diversify student bodies with local Australian students, emphasise the quality and value of course offerings, and build strong, reputable programs that draw international interest. In this article, we go into more detail on how CRICOS RTOs can manage the effects of these policy changes.
Understanding Student Migration Policy Changes
This year, the Albanese government has introduced several significant changes to Australia’s student migration policies, which are important for CRICOS RTOs to consider. These changes include increases in student visa fees, stricter financial requirements for visa applicants, and the shortening of the Temporary Graduate Visa, all aimed at managing the influx of international students in Australia while addressing broader immigration and housing concerns.
From July 2024, the cost of international student visas more than doubled, reflecting the government’s intention to ensure that only genuinely committed students apply. Additionally, the requirement for higher financial proof before gaining a student visa was introduced, intended to ensure that students can support themselves during their studies without straining national resources.
Another notable change is the prohibition of transitioning from a visitor visa to a student visa while onshore in Australia. This move aims to curb instances where individuals enter the country on short-term visas and then shift to student visas, thereby tightening immigration controls.
What CRICOS RTOs Can Do Moving Forward
Diversify Student Demographics
With a cap on international students on the horizon, CRICOS RTOs should aim to attract more domestic students. This will balance the student population and reduce the impact of the cap. Strategies may include offering scholarships, tailored marketing campaigns, and partnerships with local industries to enhance the appeal of vocational education to local students.
Enhance Program Quality and Relevance
To stay competitive, CRICOS RTOs need to focus on course quality and relevance. Your organisation can do this by regularly updating course content to match industry needs, using emerging technologies in training, and obtaining relevant accreditations. Focusing on employability outcomes and building industry partnerships will also position your RTO as a domestic and international leader in vocational education.
Develop Niche Programs
CRICOS RTOs can stand out by developing niche programs that address specific industry needs or skill shortages. By offering specialised courses that are not widely available elsewhere, your RTO can attract students looking for specialised qualifications. Niche programs can also help you build a strong reputation and brand, making your RTO a preferred choice for students with specific career goals.
You can offer high-demand units as stand-alone courses. ASQA has confirmed that this can be done using your existing scope without needing new applications. This blog over at eSkilled shows you some single unit courses your RTO can offer for maximum impact.
Strengthen Global Partnerships
Expanding and strengthening global partnerships can help CRICOS RTOs maintain their international appeal despite the cap. Collaborations with overseas educational institutions, industry bodies, and government agencies can create pathways for student exchange programs, joint degrees, and offshore delivery of courses. These partnerships can also help RTOs access new markets and reduce reliance on traditional source countries.
Invest in Online and Blended Learning
The shift towards online and blended learning models has accelerated in recent years, and CRICOS RTOs can leverage this trend to reach a broader audience. By offering flexible learning options that combine online and face-to-face components, RTOs can cater to the needs of students who may not be able to study full-time on campus. This approach can also appeal to domestic students and working professionals looking to upskill or reskill.
Emphasise Student Support Services
Providing exceptional student support services is key to attracting and retaining students in a competitive market. CRICOS RTOs should invest in comprehensive support systems that cater to the academic, emotional, and financial needs of their students. This includes career counselling, mental health services, and financial aid options. A strong support system can enhance the student experience and lead to higher satisfaction and retention rates.
Adapt Marketing and Recruitment Strategies
In light of the cap, CRICOS RTOs will need to reassess and adapt their marketing and recruitment strategies. This may involve targeting new geographic regions, focusing on digital marketing channels, and highlighting the unique value propositions of their courses. It is also essential to communicate transparently with prospective students about the changes and how the RTO is positioned to offer a high-quality education experience despite the cap.
Engage with Policy and Advocacy
Finally, CRICOS RTOs should actively engage with policy discussions and advocacy efforts to ensure their interests are represented in future regulatory decisions. By participating in industry associations, providing feedback to government consultations, and staying informed about policy developments, RTOs can influence the direction of vocational education in Australia and advocate for fair and supportive policies.
Frequently Asked Questions
How might the international student cap affect Australia’s overall education system?
The cap encourages a more sustainable approach to student intake, reducing pressure on housing and infrastructure while preserving education quality. It also compels providers to focus on long-term sector stability over rapid enrolment growth.
What does the student cap mean for international students planning to study in Australia?
Students may face more competition for limited places, especially in popular VET and higher education courses. Applying early and demonstrating strong financial capacity will be increasingly important for visa approval.
Are all international students affected by the cap?
No. Exemptions include school students, postgraduate researchers, government-sponsored scholars, and students under offshore or twinning arrangements. ELICOS students are temporarily affected due to separate visa integrity reforms.
How can CRICOS RTOs remain competitive under the new cap?
RTOs can strengthen resilience by diversifying their enrolment base, improving domestic student engagement, and offering high-demand or industry-specific training pathways that meet workforce needs.
What are the long-term implications of the cap for Australia’s VET sector?
The policy may lead to more balanced growth, encouraging RTOs to focus on employability outcomes, compliance excellence, and high-quality education delivery—enhancing Australia’s reputation for vocational training worldwide.
The Path Forward
Subject to the passage of the bill, the Department of Education will be informing providers of their international student allocations for 2025 along with further details about the distribution methodology.
Looking ahead, the Australian government’s stance provides a clear path for growth in the vocational education sector. CRICOS RTOs should leverage this opportunity to enhance their programs, expand their reach, and further integrate into the global education market.
