The Australian Government is implementing significant changes in managing international students through Ministerial Direction 115 (MD115) and a quota allocation system for each education provider. These changes directly impact school selection strategies and student visa processing times in 2026.
Overview of the International Student Cap Policy
According to PRISMS data updated on 22 May 2026, the total international student cap for 2026 is 295,000 places. Current figures show:
- Approximately 201,000 places have been used, including students who have commenced or have been granted visas
- Around 180,500 students currently hold valid student visas
This means over 60% of the annual plan has been filled. While capacity remains, many universities are approaching their allocation limits.
Breakdown by sector
Higher Education
- Total allocation: 196,200 places
- Used: 143,400 places
Vocational Education and Training (VET)
- Total allocation: 94,300 places
- Used: 57,600 places
MD115 and Student Visa Prioritisation
MD115 does not determine visa outcomes, but it directly affects processing times through three priority levels:
- Priority 1: Providers below 80% of their quota – faster processing
- Priority 2: Providers between 80% and 115% – standard processing time
- Priority 3: Providers above 115% – slower processing
This system allows the government to control international student numbers and distribute enrolments more evenly across providers.
Impact on Australian Universities
Most universities remain at Priority 1. However, several top institutions have moved to Priority 2, including:
- Monash University
- The University of Melbourne
- The University of Sydney
This indicates that these institutions are approaching their quota limits, which may result in longer visa processing times for international students.
Advantages of TAFE and Smaller Providers
- TAFE providers largely remain at Priority 1
- Most small providers are also within Priority 1
These providers face less pressure from quota limits, offering faster visa processing advantages.
However, under MD115, as the year progresses or when your chosen provider approaches its quota limit, visa applications may take longer and become more competitive compared to earlier in the year.
Source: Education.Gov.Au
