Australia Replaces MD111 with New Student Visa Directive

Australia will replace its current student visa processing rules with Ministerial Direction 115 on 14 November 2025, introducing a stricter, three-tier processing system that aims to better enforce national caps on new international student commencements. The directive, known as MD115, will take over from Ministerial Direction 111 and directly affects universities, vocational colleges, and prospective students planning to apply for the Student visa (subclass 500). It arrives alongside a higher 2026 National Planning Level of 295,000 international student places, and follows a fee increase to AUD 2,000 for subclass 500 applications that took effect on 1 July 2025.

Key change: Three-tier processing and a new slowest lane

The most notable change in MD115 is the creation of a third priority lane, which reshapes how applications move through the system.

Under MD111, universities could keep enrolling international students after reaching 80% of their allocated places, and some reportedly exceeded allocations by up to 50%. That practice strained the government’s National Planning Level and made it harder to control growth across the sector.

MD115 responds by:
– Introducing a three-tier processing system with clear thresholds tied to each provider’s allocations.
– Adding a slowest lane that captures institutions exceeding their New Overseas Student Commencement allocation by 15% or more.
– Empowering officers to act when providers exceed allocations, including slowing or refusing grants.

These tools are intended to make it harder for providers to over-enrol without facing direct processing consequences.

How the priority lanes work

Officials describe the lanes as splitting applications by provider behaviour and student category:

1. Highest priority lane (fastest)
   • Available to applicants linked to providers operating below their set threshold.
   • Special focus on:
     • Higher degree research (HDR) students
     • Scholarship recipients
     • TAFE students
     • Applicants from the Pacific region and Timor-Leste

1. Standard lane
   • Covers applicants linked to providers that have reached their 80% threshold.
   • Applies to other standard student visa applicants.
2. Slowest lane
   • Captures institutions that go beyond their allocation by 15% or more.
   • Signals clear processing penalties for breaching caps.

Enforcement and provider incentives

Enforcement sits at the core of MD115. The directive gives immigration officers the authority to slow or refuse grants once a provider reaches its quota allocation. This represents a shift from the softer settings under MD111 to a harder cap mechanism.

Intended effects:
– Push institutions to monitor offers and commence fewer students as they approach planned totals.
– Tie visa processing speed to provider behaviour, creating visible consequences for over-enrolment.
– Affect provider reputation and student experience by making quota management a visible factor in visa timelines.

“International education grows in a way that supports students, universities and the national interest,” said Education Minister Jason Clare, framing the shift as part of balancing growth with quality and national priorities.

National Planning Level and priorities for 2026

The government has set the 2026 National Planning Level at 295,000 places, an increase of 25,000 from 2025. Within that number, officials say the plan will prioritise:
– Research students
– Government-sponsored scholars

This signals support for programs central to Australia’s research strength and public partnerships. At the same time, limits on vocational education and training (VET) remain, reflecting ongoing caution around rapid growth in parts of the VET sector.

Cost changes and practical implications for students

From 1 July 2025, the Student visa (subclass 500) application charge rose to AUD 2,000. For many families, that fee increase may prompt earlier planning and tighter budgeting—especially combined with MD115’s processing dynamics.

• The Department of Home Affairs maintains official information on the subclass 500 process and charges, including eligibility and evidence rules that apply to every applicant, regardless of priority lane.
• Applicants can consult the Department page: Department of Home Affairs Student visa (subclass 500)

Transition rules: MD111 to MD115

The government has set clear transition rules to avoid disrupting applicants mid-process:
– MD111 will be revoked on 14 November 2025.
– Applications lodged before 14 November 2025 that remain undecided will continue to be processed under MD111 as it existed immediately before revocation.
– Applications lodged on or after 14 November 2025 will be processed under MD115.

This split prevents mid-stream changes for applicants who applied in good faith under the previous settings while allowing the new three-tier system to start on schedule.

Impact on providers and students

Universities and colleges will feel the changes most directly in how offers translate into actual commencements:

• Exceeding the plan by 15% or more triggers placement of new applicants into the slowest lane.
• Officers can also slow or refuse grants once a provider hits its cap—effectively curbing the unfettered over-enrolment seen under MD111.
• The government expects institutions to be more cautious about the number and timing of student offers.

For students:
– Practical effects will be uneven wait times depending on their chosen institution’s status relative to its allocation.
– Applicants linked to providers well under their threshold should see faster decisions.
– Those linked to providers near or over cap may face slower processing or higher risk of refusal.
– Course choice and timing of application may matter more than before.

Analysis by VisaVerge.com suggests MD115’s design is likely to change provider behaviour because it makes quota management an explicit factor in visa timelines.

Policy aims and geopolitical elements

The highest priority lane highlights policy focus areas beyond raw numbers:
– Faster treatment for HDR students and scholarship recipients supports research and public partnerships.
– Priority access for Pacific and Timor-Leste applicants aligns with foreign policy goals that stress regional ties, skills development, and stronger neighbour links.

MD115 therefore balances growth with selective prioritisation—fast-tracking cohorts Australia most wants to welcome and slowing those associated with over-enrolment.

Overall outlook

The national settings for 2026 point to recovery and growth in international education, with deliberate mechanisms to manage where that growth lands.

MD115 attempts to achieve this through:
– Faster visas for providers that keep within allocation
– Slowest processing for those that exceed allocation significantly
– Stronger enforcement powers for officers
– A higher AUD 2,000 application charge already in effect

Together, these changes mean students and institutions alike face a year of tighter planning, clearer trade-offs, and closer scrutiny once MD115 begins on 14 November 2025.