Australia Losing Ground to UK and US in International Student Race, New Study Finds

Australia is facing growing competition in the global education market, with a new report revealing that the country is losing ground to the United Kingdom and the United States as a preferred destination for international students. According to the latest Emerging Futures research conducted by IDP Education, only 24% of prospective international students now identify Australia as their first-choice study destination. The findings indicate a significant decline in Australia's attractiveness over a six-month period, while interest in both the UK and US continues to grow. Despite the decline, Australia remains the most widely considered destination among students planning to study abroad. However, the gap between Australia and its competitors is narrowing as students increasingly explore multiple study options before making a final decision. The research found that Australia was the only major study destination to record a decline in perceptions of its international student policies. Its policy rating fell from 6.6 to 6.3, reflecting concerns among students about ongoing regulatory and visa-related changes. Simon Emmett, Chief Partner Officer at IDP Education, said the findings highlight the impact of frequent policy adjustments on student confidence. "Constant rule changes are weighing on students' decisions," he said. Emmett warned that Australia risks losing talented international students at a time when global competition for skilled graduates is intensifying. "The world's best students have more choice than ever, and right now Australia is making itself harder to choose," he said. Skills Shortages and Economic Impact The report comes as Australia continues to experience skills shortages across key sectors including healthcare, science and energy. International students are considered an important source of future talent, with overseas-born graduates playing a major role in Australia's skilled workforce. Industry experts argue that maintaining a welcoming environment for high-quality international students will be critical to addressing future workforce demands and sustaining economic growth. Visa Certainty and Costs Drive Decisions The survey found that visa approval prospects, policy stability and post-study work opportunities are increasingly influencing students' destination choices. More than half of respondents said visa approval chances strongly affected where they decided to apply. Cost is also emerging as a major factor. The proportion of students who are no longer considering overseas education has increased, with rising living expenses becoming a significant concern. Among students favouring Australia, one in four identified the cost of living as their biggest worry, making it the highest concern among the world's leading English-speaking study destinations. Alternative Study Paths Gaining Popularity As financial pressures increase, more students are exploring transnational education (TNE) options that allow them to gain international qualifications at a lower overall cost. More than half of surveyed students said reduced expenses were the primary reason for considering these alternative pathways. The findings were released during the Australian International Education Conference (AIEC) in Sydney. The survey collected responses from 4,834 students across 106 countries between August and September 2026. Source: IDP Education Emerging Futures Report Published by: TURKEURO.COM