Economic Impact of International Education in Australia

If we account for all the spending by international students in Australia, including tuition, accommodation, food, and other expenses, then in the 2023-24 financial year, international students contributed around $48 billion to Australia’s exports.

Whether students use money from their home countries or earnings from working in Australia, their spending is still classified as an export. Around 25% of the total student expenditure (about $13 billion) is funded by wages earned by students working for Australian employers.

This classification is based on international rules from the International Monetary Fund and is used by countries around the world. For detailed explanation, please see the Australian Bureau of Statistics.

Growth in International Students: The number of international students in Australia has tripled over the past 20 years, from 182,137 students to 566,006.

Australia’s Balance of Payments: The balance of payments tracks all economic transactions between Australian residents and the rest of the world. This includes trade, income flows, and changes in assets and liabilities. The spending of international students is included in the Current Account, which covers exports, imports, and income flows.

Residency and Economic Classification: International students are classified as non-residents for the entire time they study in Australia, according to global standards. This means their economic activities in Australia, like spending on tuition and living expenses, are treated as exports. If a student decides to stay in Australia after their studies (e.g., by getting a permanent visa), only then are they considered residents in economic terms.

Impact on Australia’s Economy: Spending by international students helps boost Australia’s economy by creating a positive balance in the Current Account. This happens because the money students spend in Australia on things like tuition and living expenses exceeds the amount Australia pays to international students for wages (through jobs in Australia).

In short, international students bring substantial financial benefits to Australia, and their economic activities should be carefully considered when making policies to reflect this impact.

#studyinaustralia #studyabroad #australia #finance #educli