Labor is set to move forward with plans to limit international student numbers through an indirect approach, following the rejection of its proposed legislation by the opposition. According to a special report by The Age, the government will implement a strategy of slowing visa processing to manage enrolment levels at universities and other tertiary institutions.
Amid mounting pressure from a housing and cost-of-living crisis likely to dominate next year’s election, Home Affairs Minister Tony Burke announced a new directive to manage the flow of international students. Department officials will now prioritise visa processing until a university reaches 80 per cent of its target enrolment figure. Beyond this threshold, visa approvals will slow, effectively curbing enrolments without the need for legislative caps.
The strategy is part of the newly introduced Ministerial Direction 111, replacing the unpopular Ministerial Direction 107, which was criticised for disproportionately affecting smaller universities and students from high-risk regions. While Direction 107 reduced student numbers by 26 per cent in 2023-24, it drew backlash for its uneven application. Big city universities largely escaped its impact, continuing to grow their intake from China, while regional institutions faced significant cuts.
The Age reported that this new approach aims to achieve a 16 per cent reduction in student numbers compared to 2023 levels, translating to about 53,000 fewer students. Additionally, the revised system is expected to promote equity among institutions and diversify the student market by boosting enrolments in regional areas and reducing dependence on Chinese students.
“We can say we’re open for business as a nation, there’s no legislated cap, and there’ll be equity of prioritisation for all institutions,” said Universities Australia chief executive David Lloyd. He added that while universities may surpass the 80 per cent target, further approvals would be processed at a slower pace.
Government sources expressed confidence that complementary measures—such as increased student visa fees from $710 to $1600 and enhanced integrity checks—will prevent overshooting enrolment targets. Burke noted that while legislative caps would have been the ideal solution, the adjusted visa processing speeds represent the best alternative available to the government.
“Peter Dutton wants to talk tough on migration but has voted to let it rip when it comes to international students. This is a counterbalance to his recklessness,” Burke told The Age. The opposition, led by Dutton, voted against the proposed caps legislation, arguing it was flawed and would unfairly penalise legitimate private providers, but they have yet to offer an alternative policy.
Lobbyists in the international education sector have welcomed the changes. Phil Honeywood said the new direction would help regional universities and private colleges restart their marketing efforts, particularly in South Asia, where visa approvals had plummeted under the previous directive.
“Labor is keen to obviously not have a message that the floodgates have been reopened, as they were under the Morrison government,” Honeywood told The Age.
Labor’s revised migration forecast now targets 340,000 net overseas migrants for 2024-25, up 30 per cent from earlier projections. As the government balances economic imperatives with political challenges, the new policy underscores its commitment to managing international education responsibly while addressing broader migration concerns.
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