Australia is experiencing a major decline in international student demand, with visa applications dropping by 32 per cent between 2023 and 2025.

According to a report by ICEF Monitor, cited by the Economic Times on Thursday, the country’s international education sector is under pressure due to rising costs, tighter visa rules, and increasing visa refusal rates.

The report warned that the trend is already affecting enrolment levels across major source countries and could significantly alter Australia’s future education pipeline.

A key concern identified is weakening demand for English-language training (ELICOS) and vocational education and training (VET) programmes, along with fresh challenges for universities that depend heavily on foreign students.

“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 also noted that the number of new international students entering Australia is no longer enough 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.

The decline has been linked largely to policy tightening introduced over the last three years, including higher visa application charges and stronger controls on incoming student numbers.

Australia’s student visa application fee has now risen to AU$2,000, making it one of the highest in the world.

Although higher education enrolments rose by 9.7 per cent between 2024 and 2025, the report said the gains are being weakened by declining demand from China and high rejection rates for applicants from India, Nepal, and Bangladesh.