The University of Sydney will not be able to increase its international student enrolments next year under the government’s allocations for 2026, the federal government has revealed. Despite having the highest international student intake in Australia, the university did not receive any additional places. This decision comes as the federal government allocated 295,000 places for new international student enrolments next year, following a failed bid to cap new student places at 270,000 last year.
Of the 32 universities that sought new students, the University of Sydney was the only institution not granted extra places. This was attributed to reasons such as a lack of realistic plans for diversifying its international student cohort, insufficient commitment to south-east Asian engagement, and inadequate investment in new housing. The government emphasized the importance of engaging with south-east Asia, stating that universities demonstrating a genuine focus on the region were prioritized in the 2026 international student allocations.
The University of Sydney’s vice-president, Kirsten Andrews, expressed the institution’s commitment to fostering a more diverse student community. While the majority of overseas enrolments still originate from China, the university has observed a rise in students from countries like India, Malaysia, Vietnam, Pakistan, and Africa. Andrews mentioned ongoing discussions with the government to enhance the diversity of the student mix over time.
Both Labor and the Coalition faced criticism during the election campaign for politicizing international student enrolments and attributing housing pressures in major cities to this cohort. However, studies have shown conflicting evidence regarding the impact of international students on housing shortages. The government highlighted that universities investing in student accommodation have been rewarded with increased international student allocations.
Monash University in Melbourne secured the second-highest allocation of places at 11,300, while regional institutions like Charles Sturt University, Federation University, the University of Newcastle, and Charles Darwin University received significant percentage increases in their allocations. Major universities in Sydney and Melbourne are expected to continue attracting the highest number of international students, with the University of Melbourne and University of New South Wales each allocated over 10,000 places.
Despite the failure to pass legislation implementing an enrolment cap, the government reported a decline in student visa applications. The 2026 national planning level for international students remains below the post-Covid peak. Education Minister Jason Clare introduced legislation aimed at enhancing the integrity of the international education sector by defining education agencies and imposing stricter tests on providers to curb unethical practices.
International education has been a target for exploitative individuals seeking quick profits, according to Clare. The government’s legislative efforts aim to crack down on dishonest operators and practices within the sector. As the landscape of international student enrolments continues to evolve, universities are navigating challenges related to diversification, engagement with specific regions, and investments in infrastructure to support student accommodation.
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