Big news for international students and education providers: Australia is opening the door wider for 2025/26, with the government increasing its National Planning Level (NPL) cap from 270,000 to 295,000 new international student places. That’s an extra 25,000 opportunities – but industry insiders are asking: are these targets realistic?

The Highlights

295,000 total new student spaces in 2025/26 – up 9% from last year’s cap.

Public universities get the biggest boost, with growth opportunities of up to 9%.

Private higher education providers see just a 3% increase.

VET and ELICOS sectors still struggling, with enrolments well below allocation limits.

Focus on students from Southeast Asia and those with affordable housing options.

What Is the National Planning Level?

The NPL is Australia’s way of managing the number of new international students entering the country. While it’s not a strict “hard cap,” it sets allocation limits by sector and institution. Reach 80% of your limit, and you stay in the fast lane for visa processing; go beyond that, and you drop to the back of the queue.

Some students are exempt – including those in K-12, government scholarships, research programs, and stand-alone English courses.

Who Benefits Most?

For 2025/26:

Higher Education (public & private): 196,750 places

Vocational Education & Training (VET): 98,250 places

Public universities stand to gain most, with more space to grow if they:

Build stronger links with Southeast Asia

Provide safe, affordable housing for students

Private for-profit universities and many VET providers, however, face tougher conditions.

The Reality Check

While higher education numbers are holding strong – even above pre-pandemic levels – VET and ELICOS enrolments have dropped sharply:

VET: Only 11,572 visas granted last year against 94,000 available spots.

ELICOS: Just 15,020 visas granted, down from 60,299 in 2022/23.

Why? Higher visa fees, slower processing, and more rejections have hit non-university sectors hard.

Industry Reaction

IEAA CEO Phil Honeywood: “Extra places give some certainty – but the policy heavily favours public universities. Private English providers face an uphill battle.”

Universities Australia CEO Luke Sheehy: “This approach offers stability and a pathway for growth.”

Professor Andrew Norton, Monash University: “It’s still ‘picking winners,’ with public universities coming out on top.”

The Bottom Line

The new NPL cap is great news for public universities and offers steady growth for higher education overall. But unless visa barriers ease, VET and English language providers risk missing out – and the full potential of the extra 25,000 spaces may remain unrealised.