The Australian government has introduced a new education reform bill that removes a previously proposed cap on international student numbers. Instead, the legislation focuses on strengthening the integrity of the education sector with new rules for institutions and education agents.
Key Takeaways
- The Australian government has abandoned its plan to cap international student enrolments at 270,000 for 2025.
- A new bill, the Education Legislation Amendment (Integrity and Other Measures) Bill 2025, has been introduced to Parliament.
- The new legislation focuses on preventing exploitation by banning agent commissions for in-country transfers and stopping fraudulent school re-openings.
- Recent visa rule changes, including higher financial proof and English standards, remain in effect to manage immigration levels.
Details of the New Education Legislation
Education Minister Jason Clare introduced the Education Legislation Amendment (Integrity and Other Measures) Bill 2025, which marks a significant shift from a previous proposal. Last year, the government suggested limiting international student commencements to 270,000 in 2025, a plan that was ultimately rejected by Parliament in December.
The new bill drops this numerical limit. Instead, it aims to address systemic issues within the international education sector. According to the Ministers' Media Center, the legislation is designed to protect both students and the reputation of Australia's education system.
Background on the Dropped Cap
The original proposal in August 2024 aimed to cap university commencements at 145,000, the skills training sector at 95,000, and other providers at 30,000. The government cited concerns that rising immigration was contributing to pressure on the rental market as a key reason for the proposed limit.
Strengthening System Integrity
The core of the new bill is a series of measures intended to curb exploitative practices. One of the most significant changes is a ban on education agents receiving commissions for helping international students transfer between institutions within Australia. This practice has been linked to schemes aimed at illegally extending a student's stay in the country rather than for genuine educational purposes.
Key Integrity Measures
The legislation introduces several new rules for educational institutions:
- Preventing 'Ghost Schools': The bill will stop providers from closing down to avoid penalties and then reopening under a new name.
- Quality Control: Institutions with consistently poor quality standards may have their right to offer courses revoked by regulators.
- Domestic Training Priority: Schools will be required to have a two-year track record of training domestic students before they are permitted to enroll international students.
- Offshore Course Regulation: Any institution offering courses that lead to an overseas qualification must now be licensed by the Tertiary Education Quality and Standards Agency (TEQSA).
Providers with offshore delivery arrangements must also notify TEQSA of any changes and submit annual reports on their activities. This gives regulators greater oversight to monitor quality and identify risks early.
"International education is an important national asset. It brings tens of billions of dollars into the economy each year and builds friendships and long-term connections around the world. But it is also a target for unscrupulous individuals trying to make a quick buck," Minister Clare stated in Parliament on October 9.
Assistant Minister for International Education, Julian Hill, emphasized the goal of the reforms. He told The PIE News, "Australia's future success requires a focus on quality, integrity, and a strong student experience. The amendments are designed to crack down on exploitation, increase transparency, and safeguard the reputation of the sector."
Current State of International Education in Australia
Australia remains a major destination for international students. Data shows that from January to July 2025, the country hosted 791,146 international students. The student population is diverse, though certain countries dominate the enrollment numbers.
Top 5 Nationalities of International Students (Jan-July 2025)
- China: 23%
- India: 17%
- Nepal: 8%
- Vietnam: 4%
- Philippines: 4%
Vietnamese students represent a significant cohort, with approximately 33,524 studying in Australia, making them the fourth-largest group. However, recent data indicates a sharp decline in vocational education and training (VET) visas for this group. Between July 2024 and the end of the first quarter of 2025, only 23 VET visas were granted to Vietnamese applicants, a 58-fold decrease from the previous year.
Broader Visa and Immigration Changes
While the enrollment cap has been removed, the government continues to use other levers to manage immigration. Since late 2023, Australia has implemented several changes to its student visa regulations.
These measures include:
- Shorter Post-Study Work Rights: The duration that graduates can remain in Australia to work after completing their studies has been reduced.
- Higher English Standards: The required score for English-language proficiency tests has been increased for visa applicants.
- Increased Financial Proof: Students must now show proof of having approximately AUD$29,710 (US$19,820), an increase of about 20%, to cover living expenses.
- Tourist Visa Conversion Ban: A loophole allowing individuals to convert a tourist visa into a student visa while in the country has been closed.
New Visa Processing System
In December, the government also introduced a new directive, Ministerial Direction 111 (MD111), to manage the flow of students more directly. This system creates two tiers for student visa processing: "high priority" and "standard priority."
Universities are allocated an international student target. Visa applications are processed with high priority until the institution reaches 80% of its target. After that threshold, processing times are intentionally slowed down to a standard priority. Furthermore, to encourage a better distribution of students, 12 specific universities will benefit from faster visa processing to divert applicants from the largest and most popular institutions.
