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The Australian Government has rolled out Ministerial Direction 115 (MD 115), a major reform that reshapes how Student (Subclass 500) visa applications are processed for offshore applicants. Effective 14 November 2025, MD 115 replaces the earlier Direction 111 and introduces a three-tier “traffic-light” system that ties processing speed to how closely education providers adhere to their assigned quotas under the 2026 National Planning Level.

Here’s how the new system works:

• Tier 1 (Green): Providers using less than 80% of their quota receive the fastest processing (1–4 weeks).

• Tier 2 (Amber): Institutions with 80–115% of their quota fall into a “standard” lane, with processing expected in 5–8 weeks.

• Tier 3 (Red): Providers that exceed 115% of their quota (or have concerns such as high risk or integrity issues)

A key feature of MD 115 is the “snapshot” rule — an application’s tier is locked in the moment it’s lodged and cannot be upgraded later, even if a provider’s enrolment status improves.

The government’s rationale for this reform is twofold: to encourage a more balanced distribution of international students across regions (particularly benefiting under-enrolled regional and vocational education providers) and to relieve infrastructure and housing pressures in major cities by moderating student visa growth.

For education providers, the stakes are now higher. Institutions that exceed their quotas risk slower visa processing for future student cohorts and may also be subject to more integrity audits. On the flip side, regional universities and small vocational colleges that stay within or under their allocations are likely to benefit from more favorable treatment and faster processing.

For prospective international students, especially those applying for the 2026 intake, MD 115 adds a strategic layer to choosing a school. Visa-processing times now depend not just on your student visa application, but also on how your chosen institution is performing relative to its quota. Visa agents are already advising students — particularly from high-demand markets — to check which “tier” their institution is likely to land in before finalizing their enrollment.

Finally, for companies and HR teams that sponsor students or employee dependents: MD 115 means longer planning lead times may be necessary, especially when working with institutions that could fall into the slower processing lane.