University of Sydney the only institution denied extra international student places in 2026

The University of Sydney has been denied permission to increase its international student intake for next year. The federal government rejected its bid to add more places as part of a new plan to link student growth with housing supply and diversification efforts.

Education Minister Jason Clare and Assistant Minister for International Education Julian Hill said universities that built new student housing, partnered more with South-East Asia, and diversified their student profiles were given higher allocations. The University of Sydney was the only one among 32 institutions whose request for additional places was refused, although it still retains the country’s largest allocation of 11,900 international enrolments.

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“Australians expect to see growth in student numbers supported by investment in new housing, which is what the government’s policies now incentivise, especially for the larger institutions,” Hill said.

The Albanese government has introduced new “planning allocations” to manage international student numbers. These allocations aim to prevent universities from exceeding enrolment limits by slowing visa approvals once 80 per cent of their targets are reached. The move follows the government’s failed attempt to legislate student caps last year.

According to government data, international student visa applications have fallen 26 per cent from last year. The total planning allocation for 2026 will be about 295,000 places—8 per cent lower than the post-pandemic peak.

Clare said international education remains vital for Australia’s economy, contributing billions of dollars annually while strengthening global ties. “But we need to manage it sustainably and that’s what these allocations for universities do,” he said.

Four regional universities—Charles Sturt, Federation, Newcastle, and Charles Darwin—received the largest proportional increases in their allocations. The government said this reflected its focus on spreading the benefits of international education beyond major cities.

“We’re making sure growth in international education happens in a way that supports the national interest and spreads benefits more evenly. Regional universities play a vital role in local communities and economies, and we’re backing them with more places,” Clare added.

Despite missing out on additional allocations, the University of Sydney remains the top destination for international students. Monash University will follow with 11,300 students, the University of Melbourne with 10,500, and the University of New South Wales with 10,350.

In its application, the University of Sydney outlined steps to diversify its student body and increase engagement with other regions. Vice-President Kirsten Andrews said the university was in ongoing discussions with the government. “Our goal is to deliver an outstanding education for all our students, and international students contribute enormously to the broad range of perspectives, ideas, and cultures in our classrooms and on campus – currently making up 35 percent of our undergraduate cohort,” she said.

Andrews added that the university had expanded its student base from countries including India, Malaysia, Vietnam, Pakistan, and several in Africa. “Like all universities, we were invited by the government to apply for an increase to our international student target, and we did so to demonstrate our commitment to building a more diverse student community.”