The Australian Government has confirmed that it will not increase the National Planning Level (NPL) for international student commencements in 2027, keeping the limit unchanged from 2026 at 295,000 places.
The decision, announced by Education Minister Jason Clare, Skills and Training Minister Andrew Giles, and Assistant Minister for International Education Julian Hill, aims to provide stability for universities, vocational education providers, and international students while maintaining tighter management of sector growth.
According to the government, the 2027 planning level remains around 8 per cent below the immediate post-COVID peak. Current trends indicate that international student commencements are expected to remain below the NPL in both 2026 and 2027, with commencements in 2026 tracking 8 per cent lower than the same period in 2025 and 13 per cent below 2019 levels.
A shift towards managed growth
The decision reflects Australia’s broader policy shift towards a more controlled international education model following rapid growth after borders reopened.
“International education is an incredibly important export industry for Australia, but we need to manage it sustainably,” Minister Clare said.
“This is about making sure international education supports students, universities and the national interest.”
International education has long been one of Australia’s largest export sectors, contributing significantly to university revenues, research capacity, and local economies. However, rapid post-pandemic growth has increased pressure on housing, migration systems, and regulatory oversight, prompting the government to introduce stronger controls.
Visa fee changes and priority groups
The unchanged planning level comes alongside adjustments to student visa charges. Student and temporary graduate visa fees will increase by 25 per cent, although lower fee arrangements will continue for students from the Pacific region and Timor-Leste.
The government will also introduce reduced visa charges for selected groups, including:
- students from ASEAN countries;
- standalone English Language Intensive Courses for Overseas Students (ELICOS);
- non-award courses.
Strategically important groups, including Pacific and Timor-Leste students and Australian Government scholarship recipients, will continue to receive priority visa processing in 2027.
Universities and regional providers receive stability
Under the 2027 arrangements, all active international education providers will receive at least their current allocation, giving institutions greater certainty for recruitment and planning.
The government said this approach would preserve the stronger allocations provided to regional universities in the previous process, supporting the distribution of international education benefits beyond major metropolitan areas.
From 2027, the Australian Tertiary Education Commission will oversee international student allocations for higher education providers, while the federal government will continue setting the overall planning level.
Continued focus on quality and integrity
The government has also emphasised ongoing reforms designed to strengthen integrity across the sector, particularly within areas considered vulnerable to poor practices.
For international vocational education and training (VET), visa processing measures and regulatory reforms will continue to influence sector size and composition.
Minister for Skills and Training Andrew Giles said international VET remains important for both students and Australia’s workforce.
“International VET strengthens outcomes for students and supports our workforce, while deepening valuable global partnerships,” Giles said.
Assistant Minister Julian Hill said the government would continue managing both the size and composition of international enrolments while welcoming genuine students seeking a high-quality Australian education.
Balancing growth and sustainability
The announcement highlights Australia’s attempt to balance competing priorities: maintaining its position as a leading global study destination while responding to concerns about migration pressure, education quality, and long-term sustainability.
For universities and education providers, the unchanged 2027 planning level offers short-term certainty. However, it also confirms that Australia’s international education sector is entering a new era where future growth will increasingly depend on strategic priorities, institutional quality, and government-managed capacity rather than unrestricted expansion.
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