International Students: The Scapegoats of Australia’s Migration Debate?

 

From the housing crisis to education quality and even social cohesion, international students have become an easy target for political rhetoric. Prime Minister Anthony Albanese recently announced a crackdown on student visa numbers to “restore public confidence in the migration system,” suggesting some students misuse the system.

 

But let’s look at the numbers.

Key statistics

  • Net overseas migration was 446,000 in 2023-24, down from 536,000 a year earlier
  • Migrant arrivals decreased 10% to 667,000 from 739,000 arrivals a year earlier
  • Largest group of migrant arrivals was temporary students with 207,000 people
  • Migrant departures increased 8% to 221,000 from 204,000 departures a year earlier.

Source: https://www.abs.gov.au/statistics/people/population/overseas-migration/latest-release 

Visa Grants in 2023 – 2024

  • VET sector has seen decrease in visa grant to 56%
  • ELICOS has seen decrease in visa grant to 71%
  • Higher Ed sector is at high 91% visa grant

Source: https://data.gov.au/data/dataset/student-visas/resource/60a04f87-b974-4902-87e0-55dc5d37ccda 

 

Housing

The Productivity Commission report highlights systemic supply constraints as the key driver of housing shortages. Recent reports reveal that housing supply—not demand from temporary migrants—is the real issue behind Australia’s housing crisis. The Student Accommodation Council confirms that international students occupy only 4% of Australia’s rental market. Meanwhile, the latest immigration data shows a significant decline in temporary visa holders, including students, yet housing shortages persist.

 

Inflation

The Reserve Bank of Australia notes reduced spending power and workforce shortages are contributing to inflation pressures. Australia’s inflation rate continues to strain household budgets, with the Australian Bureau of Statistics pointing to rising housing costs and persistent worker shortages as key drivers. The reduction in temporary visa holders has also led to reduced consumer spending, further exacerbating economic challenges. With fewer students contributing to local economies, the ripple effects are felt across housing, retail, and hospitality sectors.

 

Economic Impact
The international education sector contributes $48 billion annually to Australia’s economy, making it one of the country’s most sustainable export industries. This revenue helps fund services and support systems critical during the cost-of-living crisis. Instead of cutting numbers, policymakers should focus on ensuring equitable distribution of this income to improve education quality and services for all students.

 

Untapped Workforce Potential
International graduates represent an underutilised talent pool in Australia’s labour market. Many are trained in high-demand fields, yet they face barriers to employment. As Australia looks to expand in high-tech manufacturing and green energy, these graduates could fill critical workforce gaps and boost productivity.

 

Australia needs to stop seeing international students as a political target and start appreciating the important role they play in shaping the country’s future. 

 

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