- Australia is adjusting to a new era of managed growth
Australia’s international student market is showing signs of slowing as the sector adjusts to a more managed approach to international student numbers.
New preliminary government data shows overseas higher education commencements fell 4.9% year-on-year in the first part of 2026, from 130,415 to 123,968. Overall overseas higher education enrolments were broadly flat, declining 0.5%.
The slowdown comes amid another wave of policy change. New restrictions introduced in October 2026 mean most international students can now bring dependent family members only in limited circumstances, while the government has also tightened pathways for some temporary visa holders seeking to switch to a student visa onshore.
Those measures follow tougher financial and English-language requirements, the Genuine Student test and substantially higher visa application charges introduced in recent years.
At the same time, the government has maintained its National Planning Level at 295,000 new overseas student commencements for 2027, with provider-level allocations continuing to play a role in determining visa-processing priorities.
For students, the repeated policy changes are also feeding into how Australia is assessed against competing destinations.
IDP’s Emerging Futures research, released in March, found that more than three-quarters of international students are now “shopping globally”, comparing several destinations before committing to one.
“International students are highly attuned to policy signals, and they don’t just track changes in Australia; they’re watching the UK, Canada, the US, and emerging destinations at the same time,” an IDP spokesperson told The PIE News.
“That means Australia is no longer competing on reputation alone. It’s being measured side by side against alternatives on cost, visa certainty, opportunities for internships and work placements, post-study work rights, and how welcome students expect to feel.”
For institutions, the new environment is also changing how they approach recruitment and growth. IDP said the sector was responding by working more closely with government and thinking carefully about how it attracts students, manages demand and maintains quality.
“Australia cannot afford a race to the bottom on price or standards,” the spokesperson said. “The focus must remain on attracting genuine students, making good matches and delivering strong student outcomes.”
- TNE is becoming a bigger part of Australia’s international education strategy
As Australia places greater controls on onshore student growth, its universities are simultaneously expanding their presence overseas.
India has become one of the clearest examples. The University of Western Australia opened its first Indian campus in Mumbai in September and began teaching at a second campus in Chennai in October, as Australian institutions rapidly expand their transnational education footprint in the country.
UWA is far from alone. Flinders University is preparing to establish a Bengaluru campus, while Deakin University and the University of Wollongong already have operations in GIFT City and several other Australian institutions are developing an on-the-ground presence in India.
The expansion suggests Australia’s international education model is becoming less dependent on students travelling to Australia, with offshore campuses, partnerships and hybrid models giving institutions alternative ways to reach students.
TNE could also offer a different proposition for students unable or unwilling to fund an entire degree overseas, while retaining opportunities for mobility between offshore campuses and Australia.
IDP said TNE has “real potential” to become a significant part of Australia’s international education offering, with its research suggesting students are increasingly considering it for reasons beyond affordability.
More than half of students considering TNE (52%) cited employment opportunities as a key motivation, while 49% pointed to reduced costs and 46% saw it as a pathway to future overseas study.
However, perceptions of quality remain a potential barrier, with 54% questioning whether TNE can match the main-campus experience.
“This reinforces the importance of institutions being transparent about their standards and outcomes,” the spokesperson said.
IDP also identified TNE as an issue it would like to see receive greater attention from the sector at AIEC.
“Australia has fallen behind international competitors in this space, and as debate continues around the number of international students on Australian shores, there’s a real opportunity for universities to grow by teaching more students in their home countries,” the spokesperson said.
- Students are increasingly focused on values and outcomes
Australia is also competing for international students whose expectations of an overseas education are changing.
With the cost of international study rising and alternative destinations expanding their offers, employability, internships, post-study opportunities and return on investment are becoming increasingly important parts of students’ decision-making.
To remain competitive, Australia cannot afford to rest on its laurels as a lifestyle destination
IDP
As emerging destinations compete more aggressively for internationally mobile students, Australia’s ability to offer clear career outcomes, a strong student experience and confidence in the policy environment could become increasingly important to maintaining its position.
IDP said students increasingly judge value through career outcomes, course fit, skills and academic quality, rather than cost alone, with employability consistently outranking affordability as a measure of value.
“Studying abroad is one of the biggest financial decisions international students and their families will make, and they want confidence that it will deliver a strong return on their investment,” the spokesperson said.
“To remain competitive, Australia cannot afford to rest on its laurels as a lifestyle destination. It needs to combine high-quality learning experiences with clear pathways to employment, including internships, work-integrated learning and post-study work opportunities.”






