The Australian government has announced a new strategy to control the number of international students entering the country, by regulating the visa application process through a Ministerial Direction.

This policy shift allows the Labor government to bypass parliamentary opposition from both the Coalition and the Greens, after a proposed bill to cap international student numbers failed to pass last December.

Under the new policy, if a university reaches the threshold of international student numbers set by the government, immigration authorities will decelerate the processing of additional visa applications from offshore students.

The directive prioritizes visa grants for students aiming to enroll in smaller or regional institutions, aligning with the government’s objective to foster sustainable growth and support less prominent universities.

Federal Financial Minister Katy Gallagher has defended the measure, emphasizing the importance of balancing international student influx.

"So we have been pretty upfront about it, it will prioritize visas for students going to those regional and smaller universities, which is something that we'd wanted to do through that legislation, and it will just help us manage those international student numbers which, as we've said, have contributed to quite substantial growth in numbers of people coming to Australia," she stated.

The policy replaces Ministerial Direction 107, which was issued a year ago and prioritized student visa applications from low-risk countries to low-risk educational institutions.

This previous directive led to a decline in the total number of student visas issued in the 2023 to 2024 Financial Year, down by 60,000 from the previous year, causing significant strain on regional and smaller universities that depend heavily on international students for financial sustainability.

Alec Webb, CEO of the Regional Universities Network, welcomed the cessation of Directive 107, calling it a positive development for both students and educational institutions.

"This is absolutely wonderful news for regional and smaller universities.

But it's equally wonderful news for students, who will not now be forced to decide between the university of their choice and preference, versus applying for university simply to get a visa process," Webb commented.

However, the move has faced criticism from some quarters.

The new implementation has set a limit where the slowdown is triggered once 80 percent of the international student target per university is met.

Vicki Thomson, the chief executive of the Group of Eight, which represents Australia’s premier research universities, voiced concerns about the potential confusion this policy could cause in the international education market.

"The Government has acknowledged that our international student visa system must be underpinned by integrity and quality.

However, by replacing one flawed process with another – effectively a ‘slowdown in processing’ – it has shifted the goalposts yet again," she warned.

Since late 2023, the Labor government has enacted multiple revisions to international student policies, reflecting ongoing uncertainty and anxiety within the higher education sector.

Financial challenges have already prompted institutions like the Australian National University, which announced job redundancies due to a projected $200 million deficit.

Critics, including Dan Tehan, the Coalition's Immigration spokesman, have argued that these policy shifts contribute to operational disruptions within universities heavily reliant on tuition from international students.

"Labor always makes a mess in immigration.

Eighteen months ago, they were boasting how many visas they were issuing, now we have over a million people arrive during a housing and rental crisis.

And it's very hard to see how this is going to make any difference," Tehan said.

The resolution of this situation remains critical, as the balance between supporting educational institutes and managing immigration effectively continues to challenge Australian policymakers.