Australia will increase its foreign student visa ceiling to 295,000 in 2026, marking a 9% rise from the 2024 cap of 270,000. The announcement, made on Monday by the Albanese government, reflects a strategic shift towards welcoming more students from Southeast Asia.

The move comes in stark contrast to the United States, where plans are underway under Donald Trump’s second term to overhaul the foreign student visa system, signalling a retreat from international education engagement.

Australia has opted to raise its student visa cap following a year of stricter migration measures and a 2024 limit of 270,000 that officials said helped curb previously “out of control” student numbers, according to a report by Reuters.

In the 2023 financial year alone, the country issued close to 600,000 student visas, signalling a strong surge in education-related migration after the pandemic. Although China and India continue to be the top contributors of international students, the Australian government is now deliberately shifting focus towards Southeast Asia as part of its wider strategy to reduce economic reliance on China. India, still one of the largest sources of overseas students, stands to gain from this change.

“This is about making sure international education grows in a way that supports students, universities and the national interest,” said Education Minister Jason Clare, as quoted by Reuters.

Under the revised policy, approximately two-thirds of the new quota will be allocated to universities, with the remaining one-third set aside for vocational training institutions. Public universities aiming for higher individual quotas will need to prove they have sufficient student accommodation and show growth in enrolments from Southeast Asian nations.

International education generated over A$51 billion (around $33 billion) for the Australian economy in 2024, solidifying its position as the country’s largest services export sector.