Australia’s reputation as a leading destination for international students is weakening sharply, with new research showing that growing visa uncertainty, rising costs and tougher migration policies are prompting prospective students to reconsider studying in the country.
The latest IDP Education survey found that the share of prospective international students naming Australia as their first-choice study destination fell from 31% six months earlier to just 24%. At the same time, the United Kingdom and the United States gained ground, each reaching 21% as a preferred destination. Australia remains under consideration for 54% of prospective students, but that figure has also declined.
The survey, conducted among more than 4,800 mostly prospective students, found that one in eight students who had previously considered Australia had now ruled it out, while one in five had paused their plans. The proportion of respondents who were no longer considering international study at all also increased from 11% to 16%.
Students cited concerns over visa uncertainty, affordability and post-study opportunities, while some also reported experiencing racism and feeling unwelcome. Almost half of international students surveyed said finding part-time or postgraduate employment was harder than expected, while more than one-third reported difficulties with the cost of living.
Australia has significantly tightened its student visa system as the government seeks to reduce migration and prevent misuse of student visas. From October, most international students are no longer able to bring partners or children with them, with limited exceptions for PhD students, nationals of Pacific and ASEAN countries and certain government-sponsored students. The government has also tightened restrictions on switching education providers and introduced measures aimed at preventing so-called visa hopping.
The cost of obtaining a student visa has also become a major concern. The fee rose to A$2,500 for undergraduate applicants and A$5,750 for postgraduate applicants in July, making Australia one of the most expensive destinations for student visa applications. The student visa refusal rate has also climbed to 24.6%, compared with 7.9% a decade ago.
The decline is already visible in official enrolment figures. Australian government data shows that 738,694 international students studied in Australia during the year to August 2026, an 8% decline from the same period in 2025. International student commencements fell 12%, while total enrolments declined 9%.
The pressure is creating growing concern across Australia’s university sector because international education is a major source of revenue. The sector contributed about A$53.6 billion to the Australian economy in the year to June 2025. New international student commencements at public universities are projected to fall by around 18% this year, potentially reducing university revenues by about A$2 billion over three years.
The Australian government argues that the reforms are necessary to restore integrity to the student visa system and bring migration levels under control. However, the government has also acknowledged concerns that the crackdown may be discouraging genuine and high-quality students. Assistant Minister for International Education Julian Hill has warned against an “overcorrection”, while the government prepares to review financial requirements and visa assessment processes, particularly for applicants from South Asia.
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Australia’s challenge is therefore becoming increasingly clear: while the government seeks to reduce migration and strengthen visa controls, international students have more choices than ever. With the US, UK and Canada becoming increasingly attractive alternatives, Australia’s policymakers and universities now face the difficult task of controlling migration without damaging the country’s position as a global education destination.
