Australia is facing a sharp slowdown in international student demand, with visa applications falling 32% between 2023 and 2025, according to a report by ICEF Monitor.
As reported by the Economic Times on Thursday, the report highlights growing pressure on the country’s international education sector, driven by rising costs, stricter visa policies, and increasing refusal rates.
It warns that these factors are already affecting enrolments across key markets and could reshape Australia’s education pipeline in the coming years.
A major concern is the weakening demand for English-language training (ELICOS) and vocational education and training (VET) programmes, alongside emerging challenges for universities relying heavily on international students.
ICEF Monitor said recent visa trends point to a worrying outlook for future enrolments.
“Student visa applications fell by 32% between 2023 and 2025. Several student visa trends paint a troubling picture of future international enrolments in Australia,” the report stated.
It added that the number of new students entering the country is no longer sufficient to replace those leaving the system.
“Aside from those enrolling in higher education, the number of new students coming into the country is not enough to replenish the number who are leaving,” the report added.
Policy tightening over the past three years has been identified as a key driver of the decline, including higher visa application fees and stricter controls on student inflows.
Australia’s student visa application fee has now reached AU$2,000, one of the highest globally.
While higher education enrolments increased by 9.7% between 2024 and 2025, the report noted that this growth is being undermined by falling demand from China and high rejection rates affecting applicants from India, Nepal, and Bangladesh.
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