National Planning Level (NPL) Cap
On August 27, 2024, the Australian Government introduced a National Planning Level (NPL) cap, which limits the annual growth of international student programs. From 2025, a total of 270,000 new international student commencements will be permitted annually. This cap will not affect current international students already enrolled in Australian institutions but will limit the intake of new students for both higher education and vocational education.
Here’s a breakdown of how the cap is distributed among educational sectors:
| Education Sector | Number of Commencements Allowed |
| Public Universities | 1,45,000 |
| Private Universities and Non-University Higher Education Providers (NUHEPs) | 30,000 |
| Vocational Education and Training (VET) | 95,000 |
| Total | 2,70,000 |
The new policy ensures that only the initial course a student starts in 2025 is counted toward the cap. Any second courses taken in the same calendar year will not be counted.
Stricter Visa Requirements
With the introduction of the NPL cap, the Australian Government has also updated its visa regulations, tightening the criteria for obtaining a study visa. Key changes include:
Genuine Student (GS) Requirement
Introduced on March 23, 2024, the Genuine Student requirement assesses students’ intentions and eligibility to ensure they are genuinely pursuing higher education. This will involve specific questions during the visa application process, aimed at verifying students’ genuine interest in studying in Australia.
Increased English Language Requirements
English proficiency requirements for international students have been raised, effective from March 2024.
| Visa Type | Old IELTS Requirement | New IELTS Requirement |
| Student Visa | 5.5 | 6 |
| ELICOS Course (before main study) | 4.5 | 5.5 |
| University Foundation/Pathway | 5 | 5.5 |
| Temporary Graduate Visa (TGV) | 6 | 6.5 |
Post-Study Work Opportunities
In addition to enrollment limits and new visa requirements, Australia is also introducing changes to post-study work visas. Graduates who secure skilled employment during their post-study period may be eligible for the new 4-year Skills in Demand Visa, which offers a potential pathway to permanent residency.
Migration Strategy and Industry Response
The NPL cap follows the Australian Government’s broader Migration Strategy released in December 2023. Universities Australia has expressed concern over these changes, calling for the Albanese Government to reconsider Ministerial Direction 107, which continues to have a significant impact on the sector.
These new regulations aim to manage the influx of international students while ensuring that only genuine, well-prepared candidates gain entry. Aspiring international students must now meet stricter visa requirements, navigate the capped enrollment system, and adapt to changes in post-study work opportunities.
