Australian universities struggle to fill international student places

Visa uncertainty and political debate on immigration are deterring overseas students, leaving universities with budget shortfalls that could affect domestic education.

Oct 10, 2026

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Australian universities struggle to fill international student places

Visa uncertainty and political debate on immigration are deterring overseas students, leaving universities with budget shortfalls that could affect domestic education.

In brief

Visa uncertainty and political debate on immigration are deterring overseas students, leaving universities with budget shortfalls that could affect domestic education. Australian universities are filling only two-thirds of international student places due to visa uncertainty and immigration debate, threatening budgets…

Two-thirds capacity across Australia

Two-thirds capacity across Australia

On average Australian universities are filling just two-thirds of their allocated international student places. Only five public universities have reached more than eighty percent capacity, all in capital cities.

Charles Sturt down forty percent

Charles Sturt University, which has campuses across regional New South Wales, has filled just forty percent of its international student cap this year. The university is around thirty-five percent down on last year.

Thirty-five million dollar gap

Charles Sturt has estimated the gap between international student recruitment before COVID and now is costing thirty-five million dollars. The university has announced job cuts and restructuring in response.

Visa fees and refusal rates blamed

Visa fees and refusal rates blamed

Mike Ferguson, pro vice-chancellor of international students at Charles Sturt, attributed the fall to government policy including hiking visa applications to two thousand five hundred dollars and high refusal rates.

“It's not only resulting in us losing what we believe to be largely genuine students … but it's also creating a large deterrent from new students to come in and apply, knowing they're having to pay world record visa fees with only a one in two chance of actually getting a visa.”

International fees subsidise universities

Prof Andrew Norton, an expert in higher education, said declining numbers affect all public universities because they cross-subsidise teaching and research with international student fees. International students are the only profitable aspect of university operations.

“It creates massive problems because international students are basically the only profitable aspect of university operations.”

Domestic students face service cuts

George Williams, vice-chancellor of Western Sydney University, warned financial deficits could impact domestic students. International students heavily subsidise domestic students, putting real pressure on services universities can offer to domestic students.

Political debate creates deterrent

Political debate creates deterrent

Williams said international students were being deterred by heated political debate on immigration, which would lead people to wonder whether they would be welcome in Australia.Adelaide University reached only sixty percent of international student capacity.

Regional skills shortages loom

Phil Honeywood, chief executive of the International Education Association of Australia, said diminishing international student numbers in regional areas could lead to critical skills shortages.

“The high non-refundable visa cost makes the system more like a lottery ticket.”

The takeaway

Australian universities are filling only two-thirds of international student places due to visa uncertainty and immigration debate, threatening budgets and domestic student services.

Read the original on the Guardian

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