Australia

Australia Increases International Student Cap Despite Migration Concerns

During this year’s election campaign, both major parties pledged to cap new overseas student commencements at 270,000. However, on August 4th the Albanese Government reversed course, announcing an additional 25,000 student places for 2026.

Published

8 months ago

August 21, 2025

Heath Clark

polish passports and travel documents on a table

When campaigning for this year’s national election, both Labor and Liberal leaders expressed intentions to cap

their intake of New Overseas Student Commencements at 270,000 in hopes of reducing migration. The Albanese Government, however, have since revoked this promise, announcing on August 4^th an increase of 25,000 places in 2026. In the recent media release, Minister for Education of Australia Jason Clare detailed the department’s goal to strengthen Australia’s international relationships and accommodate their increase of students sustainably to “ maintain the integrity of the migration system.” (Ministers’ Media Centre, 2025).

The intended plan allows Australia’s publicly funded universities to accept a greater number of international students under requirements of “increased engagement with Southeast Asia” and “provision of student accommodation” for international and domestic students (Clarke, 2025). This housing requirement has triggered discourse surrounding Australia’s rental crisis, with many arguing the increase, regardless of its obligations, will enhance the high demand within the nation’s private rental sector, raising the already climbing cost of living and therefore heighten the difficulty for Australian citizens to find a place to live.

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In an interview with Sky News, Home Affairs Minister Tony Burke countered this claim, expressing international education’s obligation “to be able to help with student housing” (“Pull Your Weight on Housing”: International Student Visa Cap Puts Strain on Housing Market, 2025). Burke emphasised the plan’s hope to incentivise public universities to support and produce a rise in student accommodation.

The Property Council of Australia have also indicated their agreement with the plan’s student housing criterion, with Student Accommodation Council Executive Director Torie Brown claiming it “recognises the critical role student accommodation plays in supporting the growth and integrity of international education” (Property Australia, 2025). Demanding public universities to demonstrate the provision of student housing will allow other Australians a greater opportunity to access suitably priced living quarters within the private rental sector.