University of Sydney Denied More International Student Seats in 2026

The University of Sydney, one of Australia’s top-ranked institutions, has become the only university denied permission to expand its international student intake for 2026 under the Albanese government’s new international education policy. Despite retaining the largest allocation in the country — 11,900 seats — the university’s request for extra places was rejected due to insufficient evidence of new housing development and diversity initiatives, officials said.

Check Out: University of Sydney

What the New Policy Means?

Australia’s federal government has introduced a new “planning allocation” model that links international student enrolment growth to:

• Construction of new student housing
• Increased regional diversity of students (beyond China)
• Stronger partnerships with Southeast Asian countries

Universities that met these benchmarks — particularly regional institutions like Charles Sturt, Federation, and Charles Darwin — were rewarded with more places for 2026.

Overall, 295,000 seats have been approved nationwide, roughly 8% below the post-COVID peak.

Why Sydney Missed Out?

According to the Department of Education, Sydney University’s proposal lacked “realistic plans” for student mix diversification and sufficient investment in housing.

Government officials emphasized that growth should be sustainable and not add pressure to local housing markets.

“Australians expect growth in student numbers to come with investment in housing,” said Julian Hill, Assistant Minister for International Education.

“We’re supporting universities that build accommodation and expand engagement beyond traditional markets.”

Indian Students Still a Strong Focus

Although the university didn’t receive extra seats, it remains a top choice for Indian students. Vice-President Kirsten Andrews said the university continues to attract students from India, Malaysia, Vietnam, Pakistan, and several African nations.

“We’re committed to creating a diverse student community. International learners bring rich perspectives that strengthen our classrooms and campus,” she said.

Currently, international students make up around 35% of Sydney University’s undergraduate cohort.

Check: Top Courses for Indian Students at University of Sydney

Fewer Study Visas Nationwide

• The move comes as Australia’s international student arrivals and visa applications have fallen 26% compared to 2024.
• The government plans to maintain tighter controls until 2027 to manage population growth and ease housing demand in major cities like Sydney and Melbourne.
• Despite this, Education Minister Jason Clare said the international education sector remains “critical to Australia’s economy” and contributes billions annually through tuition and local spending.

Universities That Gained More Seats for 2026

What It Means for Students Planning to Study in Australia?

For Indian students eyeing Australia in 2026:

• Expect tighter visa scrutiny and housing requirements
• Regional universities may become more attractive due to new seat allocations
• Top cities like Sydney and Melbourne may see slower international student growth

However, Australia continues to offer strong post-study opportunities, diverse programs, and globally recognized degrees — especially in engineering, business, data science, and healthcare.

Key Takeaways

• Sydney University denied extra international student seats for 2026
• 295,000 total seats approved, 8% below pandemic peak
• Priority given to regional and housing-focused universities
• Visa applications down 26% in 2025
• India remains a key source country for international enrolments