Australian language colleges, particularly those offering English Language Intensive Courses for Overseas Students (ELICOS), are facing an unprecedented enrollment crisis that threatens the very survival of many institutions. Once a vibrant pathway for international students seeking to improve their English before pursuing higher education or simply for short-term study tourism, the sector has seen dramatic declines in student numbers. Government policies aimed at curbing long-term migration have inadvertently hammered short-term language programs, leading to job losses, college closures, and a potential loss of diversity in Australia's international education landscape.
The crisis escalated in 2024 and intensified through 2025, with visa application fees skyrocketing and rejection rates hitting record highs. What started as measures to ensure genuine student intent has shifted the entire dynamics of the ELICOS market, forcing colleges to pivot or perish. This situation not only affects language schools but also ripples through universities that rely on these programs as feeders for degree-level enrollments.
Understanding the ELICOS Sector 🎓
ELICOS stands for English Language Intensive Courses for Overseas Students, a regulated category of education in Australia specifically designed for non-native English speakers. These courses range from general English for everyday communication and travel to academic English preparation for university entry, business English, and exam preparation like IELTS (International English Language Testing System) or TOEFL (Test of English as a Foreign Language). Unlike degree programs, ELICOS courses are typically short-term, lasting from a few weeks to several months, making them ideal for study tourism—a blend of learning and cultural immersion.
Historically, ELICOS has been a cornerstone of Australia's international education exports, attracting students from diverse countries such as Japan, Taiwan, Spain, France, Italy, Thailand, Mongolia, and China. In pre-pandemic years like 2019, the sector boasted over 140,000 enrollments annually, contributing significantly to local economies through tuition, accommodation, and tourism spending. Colleges are often located in major cities like Sydney, Melbourne, Brisbane, and Perth, offering modern facilities, cultural activities, and homestay options to enhance the student experience.
However, ELICOS providers must comply with strict regulations under the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS), ensuring quality teaching by qualified instructors holding certificates like CELTA (Certificate in Teaching English to Speakers of Other Languages) or equivalent. This oversight has maintained high standards, but recent policy shifts have disrupted the delicate balance between accessibility and integrity.
📉 Sharp Enrollment Declines: The Numbers Tell the Story
Government data from the Department of Education paints a stark picture. Year-to-date October 2025, total international student enrollments in Australia stood at 833,041, a mere 0.3 percent decline from the previous year. Yet, within this, ELICOS enrollments plummeted by 37 percent. Commencements—new student starts—fell even more dramatically, down 15 percent overall for international students, with ELICOS hit hardest.
English Australia's market analyses reveal accelerating declines: ELICOS commencements dropped 26 percent in the first four months of 2024 compared to 2023, worsening to 44 percent in the latter eight months. By full-year 2024, total ELICOS enrollments fell 10.5 percent to 144,453, with commencements down 20.5 percent to 97,496—the lowest outside pandemic border closures. Visa grants for stand-alone ELICOS reached their lowest levels since records began in 2005, with applications crashing 38 percent after a visa fee hike in July 2024 and another 25 percent following a subsequent increase.
- Visa rejection rates for ELICOS: Nearly 25 percent in 2024-25, up from under 10 percent pre-2023.
- Stand-alone ELICOS visa grants: Down about 26,000 in 2024, comparable to pandemic-year losses.
- Key markets: Japan and Taiwan down 30 percent, Spain 48 percent from 2019 levels.
- Grant rates from source countries: Thailand 56 percent, Mongolia 47 percent, China 29 percent (vs. 80 percent pre-pandemic).
These figures underscore a sector in freefall, with monthly stand-alone ELICOS visa grants at record lows.
Root Causes: Visa Policies and Economic Pressures
The enrollment crisis stems primarily from federal government reforms targeting international student visa integrity, introduced amid concerns over migration disguised as study post-COVID. Key changes include:
- Visa Application Fees: Surged from AUD$710 to $1,600 in July 2024, then to $2,000 mid-2025. For short ELICOS courses costing $3,000-$5,000, this fee represents a prohibitive 40-60 percent of total expenses, deterring study tourists who view it as a 'cash cow' tax.
- Heightened Scrutiny: 'Forensic analysis' of applications flags short-term ELICOS students as higher risk for overstaying, despite evidence showing most complete courses and leave. Rejection reasons often cite potential higher earnings in Australia, ignoring genuine short-term intent.
- Financial Thresholds and Caps: Higher proof-of-funds requirements and national caps on new enrollments (270,000 in 2025, raised to 295,000 for 2025/26) prioritize long-term degree programs over short ELICOS.
- Post-COVID Backlash: Relaxed work-hour limits during the pandemic led to abuse, prompting crackdowns that ensnared legitimate short-term students.
While higher education visa grants remain at 93 percent, ELICOS lags at 76 percent, favoring 'packaged' visas combining language with degrees lasting years and costing tens of thousands.
Closures and Human Impact: Real-World Toll
The crisis has led to tangible casualties. Perth International College of English ceased trading in June 2025, while The Language Academy Pty Ltd entered liquidation in May 2025. English Australia warns of more closures if trends persist, with at least 5,000 jobs lost across the sector—teachers, administrators, and support staff facing redundancy.
For educators, this means disrupted careers in a niche field requiring specialized qualifications. Students, often young professionals or gap-year travelers, find plans upended, opting for cheaper destinations like Canada, the UK, or New Zealand. Agents report daily frustrations, with even Level 1 providers (top compliance rating) seeing unexplained rejections.
Explore opportunities in higher education jobs as the sector adapts.
Ripple Effects on Universities and the Economy
ELICOS serves as a critical pathway: Many university students arrive via language programs to meet English proficiency. Reduced diversity in ELICOS—fewer Europeans and Japanese—threatens future university intakes, potentially costing billions. Universities risk losing preparatory revenue and cultural mix, while regional economies suffer from curtailed tourism.
For more on Australian academic careers, check university jobs in Australia.
Voices from the Frontline
Ian Aird, CEO of English Australia, laments: 'Stand-alone ELICOS would struggle to survive while visa fees remained so high. Many would-be students assume Australia simply doesn’t want them.' He highlights shifts to shorter stays or cheaper colleges, eroding the sector's appeal. Providers echo concerns over opaque rejection criteria, urging policy stability.English Australia's reports detail the data-driven plight.
Potential Solutions and Future Outlook
Stakeholders advocate lowering ELICOS visa fees to competitive levels (e.g., matching Canada's), exempting short-term courses from caps, and transparent processing. Recent cap increases offer hope, but rebuilding trust requires action. The sector could refocus on quality pathways, digital delivery, or niche programs like professional English.
Government data confirms ongoing challenges: Department of Education statistics.
Advice for Students, Educators, and Institutions
- Prospective Students: Research packaged options or alternatives; prepare robust visa applications with ties to home country.
- Educators: Upskill for hybrid roles; consider lecturer jobs in universities.
- Colleges: Diversify to pathway programs; partner with unis.
In summary, while Australian language colleges navigate this enrollment crisis, opportunities persist in resilient higher education. Share your experiences on Rate My Professor, explore higher ed jobs, or visit career advice and university jobs for next steps. Post a job to attract talent amid changes.