Abul Rizvi, former deputy secretary of the Home Affairs Department, told the Australian Financial Review (AFR) that Australia is currently hosting around 700,000 international students—the highest number ever recorded, exceeding the 671,000 reported in March last year.

This figure does not include an additional 100,000 former students on bridging visas or 25,000 individuals currently appealing to stay through the Administrative Appeals Tribunal.

"The government has no effective tools to control student numbers," he said.

Last August, the Australian government announced plans to limit international student enrollments to 270,000 for this year, aiming to curb record immigration levels contributing to rising home rental prices.

Under the proposed policy, the government would introduce a "national planning level" in 2025, limiting international student commencements to 145,000 at universities and 95,000 in the skills training sector, Education Minister Jason Clare said, as reported by Reuters.

Commencements at other universities and non-university providers will be capped at around 30,000.

The proposal, however, was rejected by parliament in December.

The government then introduced a new visa rule to manage international student numbers by slowing down visa processing once universities reach a predetermined target.

The Ministerial Direction 111 (MD111), effective on Dec.19, establishes two categories for student visa processing: "high priority" and "standard priority."

Universities will receive expedited visa approvals until 80% of their allocated international student target is reached. After this threshold, visa processing times will be slowed.

Since late 2023, Australia has tightened student visa regulations to better manage immigration. These measures include shortening post-graduation stay durations, raising English-language proficiency standards, prohibiting conversions from tourist visas to student visas, and increasing financial proof requirements by about 20%, now set at approximately AUD$29,710 (US$19,820).

Australia remains one of the world'’s leading study destinations, alongside the U.S. and Canada, and currently hosts one of the largest international student communities globally.

According to Australia's Department of Education, the country welcomed more than 1.095 million international students last year, the highest on record.