In a move billed as the biggest recalibration of the student-visa program in a decade, the Albanese Government on 20 November 2025 released Ministerial Direction 115. The new directive replaces Direction 111 and introduces a traffic-light priority model that ties visa-processing speed to how closely each university or college keeps within its annual enrolment allocation under the 2026 National Planning Level. Providers that stay in the green zone (below 80 per cent of allocation) move to Priority 1 processing, while those above 115 per cent fall into the red zone and face slower decisions.
Officials say the change builds on Canberra’s “managed-growth” strategy. After record growth in 2023–24, student-visa lodgements have already fallen 26 per cent in 2025 and new commencements are down 16 per cent, easing pressure on housing and infrastructure in major cities. The government wants to lock in this moderation while still protecting the A$48 billion international-education export sector.
![Australia issues Ministerial Direction 115 to rebalance international student flows]()
For institutions, compliance now carries real commercial implications. A university that exceeds its cap not only risks slower visa grants for future cohorts but may also be subject to additional integrity audits. Conversely, regional universities that historically struggled to attract students are expected to benefit from faster turnaround times that make them more competitive.
Corporate mobility managers should note that dependent family members are counted toward a provider’s allocation. Employers who sponsor postgraduate coursework or PhD candidates may therefore need to coordinate more closely with education partners to avoid unexpected delays. The Department of Home Affairs has advised education agents to update marketing materials immediately to reflect the new priority framework.
Although peak bodies such as Universities Australia broadly support the direction, some private colleges warn that tying processing speed to historic allocations could cement a two-tier system favouring the established Group-of-Eight. The government has promised a formal review after the first semester of 2026 to fine-tune the model.
Officials say the change builds on Canberra’s “managed-growth” strategy. After record growth in 2023–24, student-visa lodgements have already fallen 26 per cent in 2025 and new commencements are down 16 per cent, easing pressure on housing and infrastructure in major cities. The government wants to lock in this moderation while still protecting the A$48 billion international-education export sector.
For institutions, compliance now carries real commercial implications. A university that exceeds its cap not only risks slower visa grants for future cohorts but may also be subject to additional integrity audits. Conversely, regional universities that historically struggled to attract students are expected to benefit from faster turnaround times that make them more competitive.
Corporate mobility managers should note that dependent family members are counted toward a provider’s allocation. Employers who sponsor postgraduate coursework or PhD candidates may therefore need to coordinate more closely with education partners to avoid unexpected delays. The Department of Home Affairs has advised education agents to update marketing materials immediately to reflect the new priority framework.
Although peak bodies such as Universities Australia broadly support the direction, some private colleges warn that tying processing speed to historic allocations could cement a two-tier system favouring the established Group-of-Eight. The government has promised a formal review after the first semester of 2026 to fine-tune the model.
