Australia announces major student visa rule change from November 14: What Indian students must know

Dubai: The Australian government has just announced a major overhaul of its international student visa system.

From 14 November 2025, under the new Ministerial Direction 115, applications for the Student Visa (Subclass 500) will be managed differently — aimed at ensuring a fairer distribution of students across both city and regional campuses.

This change comes amid a sharp drop in demand: new student visa applications plunged by 26% in 2025, and course commencements fell by 16% compared to the previous year.

Australia says this controlled slowdown has given its education sector a chance to “catch its breath” — with universities better able to maintain quality, secure student accommodation and clamp down on visa misuse.

What it means for Indian students

India is one of Australia’s biggest student source countries, with over 120,000 Indian students already studying Down Under.

Under the new system, education providers that responsibly manage their international student numbers will receive higher priority in visa processing.

That means if you’re applying to a college or university that follows government guidelines, your visa could be processed faster.

Smaller vocational institutes, previously crowded out by large universities, now get a fairer shot at student allocations — meaning more study options for you.

To help institutions adapt, the Australian government will host information sessions in November and December. This rule will shape the 2026 intake and access to global education will now depend on your institution’s compliance.

What Ministerial Direction 115 Actually Changes (From November 14)

Effective date: For all offshore Student Visa (Subclass 500) applications lodged on or after 14 November 2025

(Source: Australian Department of Home Affairs, Ministerial Direction 115 PDF)

1. New priority processing system

Visa applications will now be processed based on how responsibly each education provider manages its international student numbers.

Higher priority given to:

Providers with strong compliance history

Providers that meet the 2026 National Planning Levels

Institutions that follow quality and enrolment guidelines

Lower priority given to:

Providers that exceed planned enrolments

Providers with compliance issues

Providers using aggressive recruitment or risky agents

This is not a cap — it’s a priority queue.

2. Replaces Ministerial Direction 111

MD115 officially replaces the previous rule MD111, which handled visa processing differently.

3. Designed to spread students across Australia

The government wants a fairer distribution of international students across:

Major cities

Regional campuses

Vocational training institutes

This reduces pressure on housing, infrastructure, and job markets.

4. Direct link to the 2026 National Planning Levels

MD115 is aligned with the 2026 National Planning Levels, which determine:

How many international students each provider can reasonably take

Where these students should be located

How the system remains “sustainable”

5. Why the change?

Official reasons given:

26% drop in new student visa applications in 2025

16% drop in course commencements

This drop allowed the system to recover from overcrowding and infrastructure pressure.

The government says the new directive ensures:

system integrity

education quality

fair access for smaller institutions

balanced geographic distribution

6. Impact on Indian students

Estimated 136,000 Indian students study in Australia as of 2025.

Under MD115:

Students applying to high-compliance universities will get faster visa decisions

Students applying to low-compliance or over-enrolled institutions may face delays

Vocational institutions (VET) get improved access under fairer distribution rules