The number of international students in Australia hit a record high last year with more than half a million choosing to study here.

Figures from the federal Education Department show there were 554,179 full-fee paying international students in 2016, an increase of more than 10 per cent on the previous year.

The higher education sector had the largest share of Australia's international students, with 43 per cent.

Of those the largest numbers came from China and India.

The vocational education sector accounted for 26 per cent of international student enrolments with English Language Intensive Courses attracting 21 per cent.

The schools sector only attracted 3 per cent of the total figure.

Federal Education Minister Simon Birmingham said the numbers showed the importance of attracting overseas students.

"International education is now our third largest export sector generating more than $21 billion of economic activity in Australia, supporting many jobs and providing benefits to both Australian and international students," he said.

"There are real upsides in terms of the jobs that are created, the opportunities for Australian students to study alongside international students and to gain exposure to people from more than 200 different countries who are now studying in Australia."

As well as the data on enrolments, the Government has released the results of last year's International Student Survey.

The survey found 89 per cent of students were satisfied or very satisfied with their overall experience in Australia.