International students continue to view Australia positively as a study destination, but rising living costs and changes in visa regulations are shaping perceptions, according to the latest annual survey by the Australian Trade and Investment Commission (Austrade).

Shifting Student Sentiment

The survey highlights areas where student sentiment has evolved. Australia is being perceived as a “safe and secure place to live and learn” (51%) and “welcoming to international students” (48%). However, concerns regarding post-study opportunities (45%) and 33% citing concerns about “graduate career opportunities.” 

Financial Impact on the Education Sector

The cost of living remains a major concern, with 73% of students who reported worsening sentiment citing financial pressures as a key factor. Visa policy changes emerged as the second major concern, affecting 70% of students who indicated a more negative outlook.

IDP Education reported a 16% decline in their revenue, driven by a sharp drop in student placement (down 27%) and English language testing volumes (down 24%).

Housing Availability and Economic Trends

Housing availability, while still a challenge, has shown slight improvements. In 2024, 20% of students reported finding accommodation “extremely difficult,” a decrease from 24% in 2023. Those who described it as “quite difficult” also dropped from 34% to 31%. Austrade suggests that this may indicate a gradual improvement in economic conditions for international students.

Policy Shifts Impacting Student Numbers

The Australian government has implemented significant policy changes aimed at reducing net overseas migration by approximately 50% and the number of international students granted visas has dropped significantly as the Albanese government tightens migration policies. According to the latest figures from the Department of Home Affairs, university enrolments from overseas have declined by 20%, VET is down by 42% and ELICOS is down by a staggering 46% compared to the previous year.

Source: https://www.education.gov.au/international-education-data-and-research/international-student-numbers-country-state-and-territory

Conclusion

The tightening of migration policies, rising costs, and shifting post-study work rights are reshaping the international education landscape in Australia. While student sentiment towards Australia remains largely positive, the sector is facing significant disruptions. Industry experts anticipate further challenges as government policies continue to influence student decision-making and overall enrolment trends.

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