The University of Sydney has been told it cannot increase its international student enrolments next year, as the Albanese government moves to show the higher education sector it is serious about boosting housing supply and diversifying student cohorts.

The sandstone university was the only institution to be knocked back in its bid to host a share of the 17,500 extra student places that Labor has allocated to public universities for 2026. Nonetheless, Sydney will still take in more foreign students than any other university, with 11,900 allocated enrolments.

Education Minister Jason Clare and Assistant Minister for International Education Julian Hill said universities that were building more accommodation, engaging with South-East Asia and diversifying their student markets had received i

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