Controversial visa processing directive MD 107, which prioritised student visa applications to low-risk providers and countries, has been scrapped and replaced by MD 111.
The PIE News understands that MD 111 will see departmental officials prioritising student visas for each provider until they reach 80% of their cap figure, also known as their net overseas student commencement number, which was handed down under the government’s thwarted National Planning Level for 2025.
After an institution reaches this point of its allocation, it will be placed at the end of the queue, giving priority to universities that have not yet reached 80% of their cap.
The changes came into effect as of December 19, with the Department of Home Affairs outlining the new system which sets out ‘Priority 1 – High’ and ‘Priority 2 – Standard’ visa processing.
The Albanese Labor government’s attempt to cap international enrolments faltered when the ESOS Amendment Bill failed to pass through the Senate by year-end, following the Coalition’s decision not to support it. However, the latest visa processing directive serves as an alternative approach for the government to advance its migration objectives without requiring legislative approval.
Education minister Jason Clare had previously assured that MD 107, introduced in December 2023, would remain in place in light of the Bill failing to pass – a decision that sparked outrage across the sector, with stakeholders condemning the visa-processing directive as unfair and many being vocal about its negative impact on regional universities and communities.
“The Australian government acknowledges that the student visa processing arrangements in accordance with MD 107 unevenly impacted education providers,” the Department of Home Affairs said in a statement announcing the changes.
“This new approach creates a more even approach to visa processing across a range of different provider types and locations, including for regional and small providers. MD111 will continue to support the well-managed and orderly processing of visa applications that supports the education sector equitably, while achieving government’s wider international education objectives,” the statement continued.
As the news breaks, stakeholders are beginning to assess what the new directive might mean going forward.
“These proposed caps were first introduced to parliament 216 days ago – and across this period, visa fees and requirements for demonstrating living expenses have increased, whilst visa refusal rates on subjective grounds are at unprecedented levels,” said Neil Fitzroy, managing director, Australasia, Oxford International Education Group.
The fervent hope is that this clarity will go some way to rebuild confidence and pipeline for the later intakes
Neil Fitzroy, OIEG
“Across the period July to October, offshore student visa lodgements are down 44% on prior year – with key markets of India at -60%, Vietnam at -58%, and Kenya at -88%. Many students and parents are understandably concerned about the attractiveness of Australia as a study destination.
“Whilst today’s clarity has come too late in the cycle to make a meaningful impact for the intake in early 2025, the fervent hope is that this clarity will go some way to rebuild confidence and pipeline for the later intakes,” said Fitzroy.
“Frustratingly, it does nothing to address the numerous shortcomings and errors identified in the methodology for 2025 cap calculations – so the impact will be inequitable across the sector,” he added.
