The controversial visa processing directive MD 107, which the organization had prioritized student visa applications for low-risk providers and countries, has been replaced by a new directive, MD 111. This change reflects the Australian government’s ongoing efforts to manage international student migration effectively while addressing inequities in the prior system.
MD 111 presents a revised framework for processing student data. visas, wherein departmental officials will prioritize applications for each education provider until 80% of their allocated cap—referred to as their net overseas student commencement number—is reached. This allocation stems from the government’s previously proposed but ultimately unsuccessful National Planning Level for 2025. Institutions that reach this threshold will be placed at the back of the queue, giving precedence to providers that have yet to meet 80% of their cap.
The updated visa processing system took effect in December. 19. The Department of Home Affairs has outlined two tiers within the new system: ‘Priority 1 – High’ and ‘Priority 2 – Standard.’ This structure aims to provide a more equitable approach to processing student visas across different types of providers, including regional and smaller institutions. The department emphasized that the changes would ensure orderly visa application management while aligning with the government’s broader objectives for international education.
The shift from MD 107 to MD 111 comes after Albanese. Labor government’s attempt to cap international student enrollments faltered. The ESOS Amendment Bill, which sought to introduce enrollment caps, failed to pass through the Senate before year-end, largely due to opposition from the Coalition. Consequently, MD 111 serves as an alternative mechanism to advance migration objectives without requiring legislative endorsement.
Stakeholders had widely criticized MD 107, introduced in December 2023, for its perceived unfairness and adverse impact on regional universities and communities. Education Minister Jason Clare had initially indicated that MD 107 would remain in effect following the Senate’s rejection of the ESOS Amendment Bill. However, widespread backlash prompted the government to reconsider its approach.
The Department of Home Affairs made an announcement. The Department of Home Affairs acknowledged the uneven effects of MD 107 on education providers. “The Australian government recognizes that the student visa processing arrangements under MD 107 disproportionately impacted certain providers,” the statement read. “The new directive establishes a more balanced framework for visa processing across a diverse range of provider types and locations, ensuring equitable support for regional and smaller providers. MD 111 will continue to uphold the orderly and well-managed processing of visa applications while fostering the government’s broader international education objectives.”
As news of MD 111’s implementation spreads, stakeholders are evaluating its potential implications. Neil Fitzroy, Managing Director of Australasia at Oxford International Education Group, highlighted several ongoing concerns. “These proposed caps were first presented to parliament 216 days ago. Since then, visa fees and requirements for demonstrating living expenses have increased, while refusal rates based on subjective grounds have reached unprecedented levels,” he stated. “Between July and October, offshore student visa applications have declined by 44% compared to the previous year. Key markets such as India, Vietnam, and Kenya have experienced reductions of 60%, 58%, and 88%, respectively. Understandably, many students and their families are questioning Australia’s appeal as a study destination.”
Fitzroy also expressed concerns about the timing and effectiveness of the new directive. “While today’s clarity comes too late to significantly influence the early 2025 intake, there is hope that it will help rebuild confidence and momentum for future intakes. However, the new approach does not address the flaws identified in the methodology for calculating 2025 enrolment caps, leading to continued inequities across the sector,” he added.
The introduction of MD 111 represents a significant policy shift aimed at mitigating the shortcomings of its predecessor. While Stakeholders are cautiously optimistic about its potential to restore confidence in Australia’s international education sector, ongoing concerns highlight the need for further refinement to ensure fair and effective visa processing. The coming months will reveal the directive’s impact on student enrolments and the broader education landscape.
