Australia’s new student visa rules: What MD 115 means for Indian applicants

Australia reshapes student visa processing

Australia has introduced a major change to the way international student visas (subclass 500) are processed, and thousands of prospective students — especially from India — are now wondering whether their study plans may face delays.

A new policy, Ministerial Direction 115 (MD 115), came into force on 14 November 2025, reshaping how student visa files are prioritised. The rule does not reject visas, but it directly influences how quickly or slowly applications move through the system, based on the institution a student chooses.

Here’s what the new system means, why Australia adopted it, and how it could affect Indian students preparing for the 2026 academic year.

Under the updated framework, Australia has linked visa processing speeds to how well universities and colleges manage their “New Overseas Student Commencements” (NOSC) allocation.

The system replaces Ministerial Direction 111 and introduces a three-tier priority model:

For institutions that have used less than 80% of their NOSC allocation.

These providers will enjoy the quickest visa processing times, giving their applicants a considerable advantage.

For institutions operating between 80% and 115% of their allocation.

Most mainstream universities and colleges are expected to fall into this bracket.

For institutions crossing 115% of their allocated commencement cap.

Applications linked to these institutions may face significant delays, even though approval chances remain unchanged.

Under MD 115, the emphasis is not on restricting visas but on ensuring institutions grow sustainably and comply with government planning levels.

Australia has seen a dramatic surge in international student demand in recent years. Visa lodgements reached record levels, while housing shortages, overstretched services and concerns about quality control pushed the government to rethink its approach.

Recent tightening of migration and education policies has already slowed the pressure on the system. According to the government:

Visa lodgements dropped by around 26%, and

New student commencements fell by 16%.

This gave the sector space to stabilise and allowed universities to focus on facilities, accommodation, compliance, and reducing misuse of the student visa pathway.

Smaller regional institutions have welcomed MD 115, saying it corrects long-standing imbalances in student distribution. However, major metropolitan universities — including members of the Group of Eight — argue that frequent policy shifts risk deterring international students and creating uncertainty about future enrolment patterns.

For Indian students — one of Australia’s largest international cohorts — MD 115 introduces a new layer of strategy. The institution you choose will play a much bigger role in determining how quickly your visa is processed.

If your chosen university exceeds the 115% cap, your application could slow down, even if you meet all the requirements.

Regional institutions or those that have stayed within their allocations may offer faster visa outcomes.

The new system also means students will need to be more organised. Having complete documents, meeting financial and English requirements, and choosing a compliant provider will be more important than ever.

Those targeting the 2026 intake should consider applying early. Being ahead of peak periods — and picking institutions that are comfortably within government quota — could reduce waiting times.

To help the sector transition smoothly, the Australian government plans to run detailed information sessions for institutions throughout November and December.

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Australia reshapes student visa processing