Australia’s appeal as a study destination has dropped by almost one quarter over a six-month period with only 24% of prospective international students picking the country as their first-choice study destination, according to IDP Education’s latest Emerging Futures research.
Despite this decline in attractiveness, Australia still remains the most considered destination for international students, but the US and UK are making strong gains. Between March and August 2026, the proportion of students considering the UK and US increased by eight percentage points.
Australia was also the only study destination whose rating for international student policy fell, dropping from 6.6 to 6.3.
Simon Emmett, chief partner officer at IDP Education, said “it’s no surprise” that Australia’s rating was the only score that has fallen.
“This is a clear sign that constant rule changes are weighing on students’ decisions.”
The findings come as the major English-speaking study destinations compete for a decreasing number of globally mobile students with a choice of markets. More than four out of five prospective students now consider multiple study destinations.
Emmett said the findings should be a wake-up call for Australia.
“The world’s best students have more choice than ever, and right now, Australia is making itself harder to choose. As a result, we’re losing ground in the global race for talent – and the skills and expertise that those students can then contribute to the country,” he said.
The world’s best students have more choice than ever, and right now, Australia is making itself harder to choose. As a result, we’re losing ground in the global race for talent – and the skills and expertise that those students can then contribute to the country.
Simon Emmett, chief partner officer at IDP Education
While Australia continues to suffer from skills shortages in science, energy and healthcare, Emmett explains that international students are “an important pipeline” into these fields with “more than half of Australia’s university-qualified STEM workers” having been born overseas.
“At a time when that pipeline matters more than ever, our policies and political rhetoric are working against one of Australia’s great success stories of the past 50 years. Governments, universities and partners must work together to strengthen system integrity, but for quality students, the message must remain welcoming,” Emmet added.
The new research shows that visa approval prospects, policy stability and post-study work certainty now influence destination decisions earlier in the student journey. Over half of prospective and applied students surveyed regarded visa approval prospects as strongly influencing their destination choice.
The costs of studying abroad are also shaping students’ decisions, with the proportion of students no longer considering international study increasing from 11% to 16% since the IDP Education’s last survey. A quarter of students whose preferred destination was Australia said the cost of living was their biggest concern, the highest among the top four study destinations.
To manage cost pressures, more students are considering TNE as it is increasingly being seen as a more affordable route to international education. 52% of respondents said ‘reduced overall cost’ is their top motivation for considering TNE.
IDP released the data at this year’s Australian International Education Conference (AIEC) taking place in Sydney.
The survey collected responses from 4,834 students across 106 countries between 18 August 2026 and 16 September 2026.
