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Australia Lifts Foreign Student Cap to 295,000 and Prioritises Southeast Asia

AUSTRALIA, AUG 4 – The 2026 cap raises international student places by 9% to 295,000, prioritizing South-east Asian applicants and requiring universities to ensure safe student housing, officials said.

  • Australia will raise its foreign student cap by 9 percent to 295,000 in 2025, prioritising applicants from Southeast Asia.
  • This decision follows government efforts over the last 12 months to curb out‑of‑control international student numbers through visa fee hikes and policy limits.
  • The government allocated roughly two-thirds of places to universities and one-third to vocational training, requiring universities to ensure safe housing and increased Southeast Asian recruitment.
  • The international student sector contributed over AUD51 billion to Australia’s economy in 2024, with nearly 600,000 visas granted in the 2023 financial year.
  • The cap increase reflects the government's goal to support sustainable sector growth while strengthening relations with Southeast Asia and universities’ calls for expansion.
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thekoalanews.com broke the news in on Monday, August 4, 2025.
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