Prime Minister Anthony Albanese’s government has signaled it wants to rely less on Chinese international students and give foreigners at university an easier path to permanent residency.
International students accounted for more than a quarter of all enrollments in Australia in 2022, with 450,000 foreigners paying fees directly.
Fees from these international students contributed a fifth of all university funding and constitute Australia’s fourth largest “export” – education – after iron ore, coal and natural gas.
But the Australian Universities Deal Final Report, released on Sunday by Education Minister Jason Clare, also hinted that Australia needed to dilute its dependence on PorcelainAustralia’s largest source of international students that had imposed trade sanctions in 2020.
He recommended that an Australian Tertiary Education Commission be established with a view to reducing Australia’s dependence on a small number of countries for international students.
Prime Minister Anthony Albanese’s government has signaled it wants to rely less on Chinese international students and give foreigners at university an easier path to permanent residency (pictured, students outside the University of New South Wales in Sydney)
“The review recommends that the Australian government and the commission work together to manage demand volatility where possible, including by diversifying markets to avoid over-reliance on a small number of countries,” the review said.
The review hinted that Australia could diversify away from China and towards India, which last year overtook China as the world’s most populous nation.
“While China remains Australia’s largest bilateral trading partner and largest source of international students, India is now the world’s most populous nation with the world’s largest youth population,” the report says.
“This presents considerable opportunities for Australia.”
The report also suggested that international students needed to have more pathways to permanent residency.
“This includes addressing issues associated with ‘permanently temporary’ visa status, where migrants remain in Australia without the opportunity to acquire permanent residency,” he said.
“Improving transparency, clarity and communication about the Australian visa system would improve immigration outcomes for international students.”
Under existing rules, international students can buy an existing property in Australia to live in, but must sell it within six months of graduating and leaving the country.
Permanent residents face no such restrictions and do not have to seek approval from the Foreign Investment Review Board to purchase any property or land.
Nearly two-thirds, or 65.2 percent, of international students came from Asia, with China, India, Nepal, Vietnam and Indonesia at the top of the list.
Unlike local students, who can defer their tuition fees until long after graduation, international students pay up front, providing universities with a lucrative source of income.
The report also recommended that international students seeking a path to citizenship study courses to get a postgraduate job in an area with a skills shortage and avoid large, overcrowded cities.
“Some international students are looking for an immigration path,” he said.
“In line with the Australian Government’s Migration Strategy aim for a better targeted system, the tertiary education sector should encourage these students to study courses linked to skills shortages in Australia and to study in regional locations.”
Under existing rules, international students can buy an existing property in Australia to live in, but must sell it within six months of graduating and leaving the country. Permanent residents face no such restrictions (pictured, a property seminar in Sydney)
The report also highlighted the need for international students to have better “migration opportunities and positive employment outcomes.”
A record 518,000 permanent and long-term migrants, on net, moved to Australia in 2022-23, including international students along with skilled migrants.
Almost a third or 29.5 per cent of Australians were born overseas in 2022.
Australia is particularly reliant on foreign immigration for its working-age pool, with people aged 65 and over expected to make up 23.4 per cent of the national population by the 2062-63 financial year.
While increased migration, including that of international students, increases the supply of labor, it also increases the demand for housing, leading to higher rents and prices.
Median house prices in the capital rose 11 per cent in the year to January, to $944,229, compared with a 4.7 per cent rise in regional areas to $621,301, CoreLogic data showed.