Key Takeaways:
- The proposed cap on international students has evolved since 2024, moving from a pending legislative proposal to a broader managed-growth approach through National Planning Level settings.
- The policy focus is on new international student commencements, not total international student enrolments, which is an important distinction for CRICOS RTO planning.
- CRICOS RTOs should continue monitoring National Planning Levels, student visa processing settings, financial requirements and recruitment conditions when planning future international delivery.
- The updated policy environment creates pressure for CRICOS RTOs to diversify student demographics, strengthen domestic recruitment and reduce reliance on a narrow group of international source markets.
- Stronger course quality, niche programs, blended delivery, student support and global partnerships can help CRICOS RTOs remain competitive despite ongoing international education policy controls.
The Australian government has announced a proposed National Planning Level (NPL) of 270,000 new international student commencements for 2025, subject to legislation passing Parliament. The proposed NPL was designed to bring new international student commencements across higher education and VET closer to pre-pandemic levels.
What’s Changed in 2026:
Since this article was first published, the proposed cap on international students has moved from a pending legislative proposal to a broader managed-growth approach. The original 2024 discussion still matters, but the current policy setting is different for universities, VET providers and CRICOS RTOs.
- 2024 ESOS Bill: The original bill did not proceed, so the provider-level caps proposed in 2024 were never legislated. This makes the original proposal important context, but not the current legal framework.
- 2025 National Planning Level: The government proceeded with 270,000 new international student commencements for 2025. This applied to new commencements, not total international student enrolments.
- 2026 National Planning Level: The 2026 level increased to 295,000 international student places. This gave the sector more room for managed growth while keeping international education under closer government oversight.
- Visa Processing Settings: Student visa policy remains a major factor for providers. For a CRICOS RTO, the practical impact may come from visa processing priorities as much as any formal cap on international students.
- 2027 Outlook: The government has confirmed no increase to the National Planning Level for 2027. The level will remain at 295,000, so CRICOS RTOs should continue monitoring visa settings, recruitment strategy and course demand.
Key Details on the Cap
Education Minister Jason Clare revealed that this cap includes approximately 145,000 new starters for publicly funded universities and 95,000 for vocational institutions. For CRICOS RTOs with historically high proportions of international students, this policy aims to encourage demographic diversification.
The cap applied to ‘new international student commencements,’ meaning it focused on new starts rather than total international student enrolments. Exemptions to this cap include school students, postgraduate research students, those in standalone English language courses, scholars sponsored by the Australian or key partner foreign governments, students under twinning arrangements completing courses offshore, and students from the Pacific and Timor-Leste.
Implications for CRICOS RTOs
Before the NPL announcement, sector discussion had focused on whether limits would be tied to 2019 NCVER enrolment data. The government’s announced figure of around 95,000 new VET international student commencements gave CRICOS RTOs a clearer indication of the proposed scale.
While this poses challenges for CRICOS RTOs, it also presents opportunities to diversify student populations with local Australian students, improve course offerings, and build strong, reputable programs to attract international interest.
Adapting to Policy Changes
Several significant changes to Australia’s student migration policies, introduced by the Albanese government, are crucial for CRICOS RTOs to note. These include increased student visa fees, stricter financial requirements, and a shorter duration for the Temporary Graduate Visa, aimed at managing the influx of international students while addressing broader immigration and housing issues.
From July 2024, the cost of international student visas more than doubled, with the increase positioned by government as part of broader migration integrity reforms. Higher financial proof requirements have been introduced to ensure students can support themselves during their studies without straining national resources.
Another key change is the prohibition of transitioning from a visitor visa to a student visa while onshore in Australia. This aims to curb the practice of individuals entering on short-term visas and then switching to student visas, thus tightening immigration controls. In this blog post, we delve deeper into strategies for CRICOS RTOs to effectively navigate the impacts of these policy changes.
Strategic Actions for CRICOS RTOs
Diversify Student Demographics
Given the cap on international students, CRICOS RTOs should focus on attracting more domestic students. This can be achieved through scholarships, targeted marketing campaigns, and partnerships with local industries to make vocational education more appealing to local students.
Develop Niche Programs
CRICOS RTOs can stand out by offering niche programs that address specific industry needs or skill shortages. Specialised courses can attract students seeking unique qualifications, helping to build a strong reputation and brand.
You can also deliver high-demand units as stand-alone courses. ASQA has confirmed that this can be done using your existing scope without requiring new applications.
Invest in Online and Blended Learning
The rising trend towards online and blended learning models offers CRICOS RTOs the opportunity to reach a broader audience. Offering flexible learning options that combine online and face-to-face components can cater to students who cannot study full-time on campus, including domestic students and working professionals.
Enhance Program Quality and Relevance
To remain competitive, CRICOS RTOs must prioritise the quality and relevance of their courses. Regularly updating course content to align with industry needs, integrating emerging technologies, and obtaining relevant accreditations are essential. Focusing on employability outcomes and building industry partnerships will position your RTO as a leader in vocational education.
Strengthen Global Partnerships
Expanding and strengthening global partnerships can help CRICOS RTOs maintain international appeal despite the cap. Collaborations with overseas educational institutions, industry bodies, and government agencies can create pathways for student exchange programs, joint degrees, and offshore course delivery. These partnerships can also help access new markets, reducing reliance on traditional source countries.
Enhance Student Support Services
Providing exceptional student support services is crucial for attracting and retaining students in a competitive market. CRICOS RTOs should invest in comprehensive support systems that cater to academic, emotional, and financial needs, including career counselling, mental health services, and financial aid options. A robust support system can enhance the student experience and lead to higher satisfaction and retention rates.
Adapt Marketing and Recruitment Strategies
In light of the cap, CRICOS RTOs need to reassess their marketing and recruitment strategies. This may involve targeting new markets, focusing on digital marketing, and highlighting the unique value of their courses. Transparent communication with prospective students about the changes and the quality of education offered despite the cap is essential.
Engage with Policy and Advocacy
CRICOS RTOs should actively participate in policy discussions and advocacy to represent their interests in future regulatory decisions. Participation in industry associations, providing feedback to government consultations, and staying informed about policy developments can influence the direction of vocational education in Australia.
Frequently Asked Questions
What does the cap on international students mean for CRICOS RTOs?
The cap on international students refers to government planning settings for new international student commencements, not total enrolments. For CRICOS RTOs, this means international recruitment plans should account for National Planning Levels, visa processing settings and provider-level allocation changes.
Does the cap apply to all international students in Australia?
No. The policy focus is on new international student commencements, and some student groups are excluded from National Planning Level settings. These exclusions may include school students, postgraduate research students, standalone English language course students and certain sponsored or offshore students.
How can CRICOS RTOs prepare for international student policy changes?
CRICOS RTOs can prepare by reviewing recruitment channels, strengthening domestic student strategies, monitoring visa policy updates and improving course quality. Providers should also assess whether their current programs, student support systems and marketing strategies remain competitive under managed-growth settings.
Why should CRICOS RTOs diversify their student markets?
Diversifying student markets can help CRICOS RTOs reduce reliance on one source country or one student cohort. A broader recruitment strategy can support more stable enrolments, improve resilience against policy changes and create stronger long-term growth opportunities.
Can CRICOS RTOs still grow despite the cap on international students?
Yes. CRICOS RTOs can still grow by developing niche programs, improving student support, expanding domestic recruitment and exploring online, blended or offshore delivery opportunities. The key is to build a stronger delivery model that is less dependent on unrestricted international student growth.
Moving Forward
Pending the passage of the bill, the Department of Education will notify providers of their international student allocations for 2025, along with details about the distribution methodology.
Looking ahead, the Australian government’s stance provides a clear path for growth in the vocational education sector. CRICOS RTOs should seize this opportunity to enhance their programs, expand their reach, and look into domestic growth opportunities.
