Major Reversal on International Student Cap! Political Drama Unfolds—Will Australian Education See a Rebound?
Breaking News! The Labor Party’s 2025 legislation to cap international student enrollments (CAP) has hit a roadblock! The Liberal Party and the Greens have joined forces to block the bill, dealing a major blow to the Labor government. Originally set to limit international student numbers to 270,000, the policy now faces an uncertain future, with the next two weeks being a critical period. This cap was intended to curb low-quality education providers and ease pressure on migration and the rental market. However, growing opposition in the Senate could delay or even derail the plan!

Event Recap & Latest Developments
- Legislation Blocked: Although the bill passed the House of Representatives, multi-party disagreements in the Senate have stalled its progress. The Greens opposed the bill, arguing it would negatively impact Australia’s economic growth. Meanwhile, the Liberal Party also rejected the link between international students and the housing crisis.
- Ministerial Direction 107 (DPI 107) Remains in Effect: This directive continues to prioritize student visa approvals for high-rated (Level 1) institutions, while maintaining strict scrutiny on applications from low-rated (Level 3) institutions. As a result, visa approval rates and processing times will remain heavily influenced by institutional ratings.
Potential Impact on Student Applications
Positive Developments:
- More Openings at Top Universities: High-demand universities, such as the University of New South Wales (UNSW), may now increase offer allocations. Some programs might even lower entry requirements due to the lifted cap.
- Short-Term Advantage: The gap created by this policy shift could offer a strategic window for international students to secure admission into top institutions before further regulatory changes take effect.
Uncertainties & Challenges:
- Stricter Visa Approvals Possible: The Labor Party may tighten temporary visa processing through other measures, increasing risks for students at lower-rated institutions. Processing times for Subclass 500 Student Visas are expected to lengthen, affecting study plans and enrollment timelines.
- Increased Volatility: Rapid policy shifts could lead to sudden changes in university admissions strategies and visa processing rules, requiring applicants to stay constantly updated.
How to Maximize Opportunities & Mitigate Risks?
- Secure Offers from Top Universities ASAP: Applicants should act quickly to secure admission at high-ranking institutions and in-demand programs to avoid being impacted by future policy shifts. If you have already received an offer, accept it promptly to prevent possible withdrawal or changes due to university policy adjustments.
- Prioritize High-Rated Institutions: Choosing well-established universities with stable enrollment quotas will reduce visa risks and ensure a smooth academic pathway.
- Plan Ahead for Visa & Application Strategies: Submit applications as early as possible to avoid last-minute policy disruptions that could affect your study and migration plans.
Merchants Prosperity: Your Trusted Study & Migration Partner
As seasoned education and migration experts, we stay ahead of the latest Australian policy developments and specialize in tailoring personalized study and migration plans for every client. From university selection and visa applications to long-term migration strategies, we are here to help you achieve your goals with confidence!