Ibrahim Gardner
Australia is a popular destination for international students, with international education contributing A$36.4bn to the Australian economy in 2022-23. However, in 2024, the Australian government introduced a cap on international student enrolments, limiting new enrolments to 270,000 for 2025. This has made it more difficult for international students to gain admission to Australian universities, with some universities expressing anger at the changes. Despite this, Australia remains open to international students, with the government providing support to the international education sector and implementing initiatives to protect students' post-study work rights.
| Characteristics | Values |
|---|---|
| International students in Australia | Over 1 million |
| International students as a source of income | Over $36 billion annually |
| Visa fee | A$1,600 |
| Visa requirements | Confirmation of Enrolment (CoE), financial statements, property ownership, tax records, and proof of language proficiency |
| Visa restrictions | Visitor Visa and Temporary Graduate Visa holders cannot apply for Student Visas while in Australia |
| Visa processing time | Slower after universities hit 80% of their enrolment quotas |
| Student health requirements | Must purchase Overseas Students Health Cover (OSHC) or have adequate health insurance |
| Student restrictions | Cap of 270,000 new international students for 2025 |
| Student intake | Semester 3 (September/October/November) caters mainly to international students |
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What You'll Learn
- International students are a major source of income for Australia
- Australia has introduced a cap on international student enrolments
- International students need to purchase Overseas Students Health Cover
- Student visa policies have become a focus of political discourse
- The Australian government has announced support for international education
International students are a major source of income for Australia
Australia has one of the biggest international student markets in the world, with around 717,500 international students as of early 2024. International students are a major source of income for Australia, with international education worth A$36.4 billion to the Australian economy in 2022-23, making it the country's fourth-largest export. In 2018-19, Australia's total economic benefit from "education exports" was AUD$37.6 billion, making higher education the country's third-largest export earner, only after coal and iron ore. The three largest source countries for this income were China (AUD$12.1 billion), India (AUD$5.5 billion), and Nepal (AUD$2.6 billion).
The Australian government has recognised the economic importance of international students, with the former Coalition Education Minister, Dan Tehan, highlighting the sector's contribution to the economy. However, there have been concerns about the distribution of revenue within the tertiary education sector. Larger urban universities have benefited more from international student fees than their regional and smaller counterparts. For example, Monash and UNSW doubled their revenue from international students between 2010 and 2019, while most regional universities have not seen similar gains.
The COVID-19 pandemic significantly impacted the number of international students in Australia, with strict border controls and the closure of borders resulting in a decrease in enrolments. Despite this, the number of international students at universities in 2024 was 10% higher than pre-pandemic levels, while private vocational and training providers saw a 50% increase. The Australian government has recently introduced a cap on new international student enrolments to manage migration levels and improve the quality of the tertiary education sector.
While the cap has been met with criticism from the tertiary education industry, the government maintains that it will ensure the sector's longevity and sustainability. The restrictions will also help address the challenges posed by Australia's record migration levels, including pressure on housing and infrastructure. The cap for 2025 has been set at 270,000 new international students, with private universities and non-university higher education providers limited to 30,000 enrolments, and vocational education and training institutions restricted to 95,000.
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Australia has introduced a cap on international student enrolments
Australia has announced a cap on the number of new international students it will accept, with the aim of reducing overall migration to pre-pandemic levels. The country is home to one of the world's largest international student markets, with around 717,500 international students, according to early 2024 government figures. The number of new enrolments will be limited to 270,000 for 2025. This includes both higher education and vocational education courses.
Each higher education institution will operate under individual restrictions, with the biggest cuts affecting vocational education and training providers. Public universities will be restricted to 145,000 enrolments, while private universities and non-university higher education providers will be able to enrol 30,000 new international students.
The policy has been met with criticism from the tertiary education sector, with some universities labelling it "'economic vandalism'" and arguing that it will decimate the industry. The government, however, maintains that it will improve the quality and longevity of the sector.
The cap on international student enrolments is part of a series of migration changes implemented by the Australian government. These changes have made Australia less attractive to international students, with a tenth change expected to make permanent migration more challenging for them. The government has also introduced tougher English language requirements and increased scrutiny for second study visa applicants.
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International students need to purchase Overseas Students Health Cover
Australia has recently announced a cap on the number of international students it will accept in 2025, limiting new enrolments to 270,000. This has been met with criticism from the tertiary education sector, which is already reeling from the impact of the pandemic. Despite these restrictions, Australia remains open to international students, albeit with certain conditions in place.
International students intending to study in Australia need to be aware of the Overseas Students Health Cover (OSHC) requirement. OSHC is a mandatory health insurance policy for international students, ensuring they can access healthcare services during their stay. It is a visa requirement and must be maintained for the entire duration of the student's stay in Australia. This includes any extra time spent in the country after completing studies, as a lapse in OSHC will result in a visa cancellation.
The basic OSHC plan covers essential medical and hospital care, providing financial protection for unexpected health expenses. However, it does not include treatments such as dental, optical, or physiotherapy. Students can purchase additional cover, known as Extras OSHC, to include these services. It is advisable to compare the different OSHC providers and their policies to ensure adequate coverage. Students can also opt for private health insurance to cover items that OSHC does not.
International students can purchase OSHC directly from insurance providers or utilise the services of their educational institution, which may arrange cover on their behalf. It is important to note that OSHC providers must be informed of the student's arrival date to ensure insurance coverage commences immediately. Students should also be mindful of any family members accompanying them, as they will also need OSHC cover.
In summary, international students planning to study in Australia must purchase Overseas Students Health Cover to satisfy visa requirements and ensure access to healthcare services. By understanding the OSHC options and choosing the right provider, students can ensure they have the necessary coverage to support their health and well-being during their time in Australia.
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Student visa policies have become a focus of political discourse
In 2024, the Australian government proposed a cap on international student enrolments, limiting them to 270,000 for 2025. This move was met with criticism from the tertiary education sector, with some universities labelling it as "economic vandalism". The government also tightened English language requirements for student visas and introduced powers to suspend education providers who break rules, such as enrolling students without adequate language skills.
The ruling Labor Party has proposed increasing student visa fees to A$2,000, a measure expected to generate A$760 million over four years. This follows a previous increase in visa fees in July 2024, which more than doubled the cost from A$710 to A$1,600. The conservative opposition has pledged to raise fees further, with a minimum of A$2,500 and up to A$5,000 for top universities.
These policies have been implemented with the stated goals of improving the integrity and quality of international education in Australia and addressing migration levels. However, critics argue that the constant changes in policy create confusion in the international student market and damage Australia's reputation as a leading education provider. The focus on international students in political discourse reflects the economic, social, and political significance of this group in Australia's broader development.
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$10
The Australian government has announced support for international education
Australia is home to about 717,500 international students, according to early 2024 government figures, and international education was worth A$36.4 billion to the Australian economy in 2022-23. The Australian government has recognised international education as a vital part of Australian society, bringing many economic, cultural, and social benefits.
The government has also introduced Ministerial Direction No. 111, which took effect on 19 December 2024, to address integrity and quality concerns and support a more sustainable international education sector through changes to visa processing prioritisation. This new direction aims to ensure well-managed and orderly visa processing, supporting the government's wider international education objectives.
Additionally, the government has released its Migration Strategy, which includes strengthening the integrity and quality of international education. A key action is preventing the exploitation of international students and protecting Australia's reputation as a high-quality education destination. From 1 July 2023, international higher education graduates with eligible qualifications will be granted an extra two years of post-study work rights.
The government has also implemented regulations to ensure students enjoy quality education within a fair legal and consumer protection framework. The ESOS Act 2000 outlines the policies, legislation, and standards that international students should be aware of while studying in Australia.
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Frequently asked questions
Yes, Australia is open for international students. However, there have been recent changes to visa policies, which have made it more difficult for international students to get admission.
The Australian government has introduced a cap on the number of new international students, limiting enrolments to 270,000 for 2025. This cap applies to private universities and non-university higher education providers, as well as vocational education and training institutions. Additionally, the fee for international student visas has increased to A$1,600, and the Genuine Temporary Entrant requirement has been replaced by the Genuine Student requirement, which includes a targeted list of questions for applicants.
International students must present their passport, passenger card, and student visa evidence to the Australian Immigration authorities when arriving at an Australian airport. They must also have adequate health insurance, such as Overseas Students Health Cover (OSHC), to comply with their student visa conditions.
