Growing Popularity and Challenges for International Students
Australia has long been one of the most sought-after destinations for international students, offering world-class education, a welcoming environment, and promising career prospects. However, despite its continued popularity, concerns over rising living costs, visa restrictions, and post-study opportunities are starting to impact the perception of foreign students considering Australia for higher education.
A recent Australian Trade and Investment Commission (Austrade) survey in late 2024 gathered insights from nearly 2,300 international students. The findings revealed that while Australia remains an attractive option, growing financial pressures and recent policy changes are causing anxiety among current and prospective students.
Positive Perceptions of Studying in Australia
Despite emerging concerns, a significant proportion of students still view Australia favourably. According to the survey, 51% of respondents reported improved perceptions of Australia’s safety and security, highlighting the country’s reputation for offering students a stable and peaceful environment. Another 48% of students noted an enhanced sense of being welcomed, indicating that institutions and communities prioritise international student engagement.
Australia’s multicultural society, globally recognised universities, and strong student support networks remain key factors contributing to its popularity. Many students appreciate the high-quality education, diverse academic opportunities, and pathways to employment in critical industries such as information technology, engineering, and healthcare.
However, despite these positives, concerns over financial burdens and stricter visa policies are dampening the enthusiasm of many international students, raising questions about Australia’s long-term appeal as a study destination.
Rising Costs Becoming a Major Concern
One of the biggest challenges facing international students in Australia is the sharp rise in living costs. The survey found that 73% of students experiencing declining sentiment attributed it to financial pressures, including accommodation costs, tuition fees, and everyday expenses.
The high cost of living in major cities such as Sydney, Melbourne, and Brisbane has made it difficult for students to manage expenses, even with part-time jobs. Rent prices have surged in recent years, and with Australia experiencing inflationary pressures, students are struggling to keep up with essential costs such as food, transportation, and healthcare.
A significant policy change that has further impacted students is the increase in student visa fees. In July 2024, the Australian government raised student visa application fees from AUD 710 to AUD 1,600, more than doubling the cost of obtaining a study visa. This sudden hike has made studying in Australia more expensive than ever, particularly for students from lower-income backgrounds.
The financial proof required for visa approval was also increased in May 2024. The minimum funds required for an international student to prove financial capacity rose to AUD 29,710, placing additional financial strain on those applying for visas. Many students have expressed frustration at the increasingly high financial requirements, making it harder for families to support their children’s education abroad.
Visa Restrictions and Post-Study Uncertainty
The survey revealed that 70% of students expressed concerns over recent visa changes, while 45% reported a decline in perceptions regarding future residency and immigration prospects. Australia has recently introduced a series of restrictions affecting student visas, post-study work permits, and migration opportunities, making it more difficult for students to plan long-term careers in the country.
One of the major policy shifts was the introduction of enrolment caps for international students. In August 2024, the Australian government capped the number of new international student enrolments at 270,000 for 2025, citing concerns over migration levels, housing shortages, and infrastructure capacity. This decision has raised fears that securing admission into Australian universities will become more competitive, with fewer places available for overseas applicants.
Another significant change is the reduction in post-study work opportunities. The government has introduced age limits for post-study work permits and shortened the duration for which international graduates can stay in Australia. Previously, students could apply for Temporary Graduate Visas (subclass 485), allowing them to work for up to four years after completing their studies. Under the new rules, many students will now have reduced work rights, impacting their ability to gain professional experience and transition to permanent residency.
For many international students, these policy changes represent a shift towards a more restrictive migration environment, leading them to explore alternative study destinations such as Canada, the UK, and the United States, where post-study work opportunities are perceived as more accessible and student-friendly.
Student Adaptation and Coping Strategies
Despite the financial and policy challenges, many international students are finding ways to adapt and navigate these difficulties. The survey indicated that 58% of respondents reported feeling more comfortable over time, as they adjusted to their academic and social environments. Additionally, 53% of students highlighted making new friends as a key factor in their positive university experience, while 50% acknowledged that their academic experience remained strong.
To manage rising costs, students are adopting various cost-cutting measures, including:
- Choosing shared accommodation instead of renting individual apartments.
- Taking up part-time jobs to supplement living expenses.
- Budgeting carefully and cutting down on non-essential expenses.
- Exploring scholarships and financial aid options offered by universities.
Many students are also seeking better employment opportunities during their studies to cope with financial demands. The Australian government’s decision to relax work-hour restrictions for student visa holders in certain industries, such as healthcare and hospitality, has provided some relief. However, for those studying in fields with fewer part-time work opportunities, financial challenges remain a significant concern.
The Impact on Australia’s Education Sector
International education is a key contributor to Australia’s economy, generating billions of dollars annually through tuition fees, housing, and student spending. With rising costs and stricter migration policies, there is concern that fewer students may choose Australia as their study destination, potentially impacting university revenues and local businesses that rely on international students.
Universities and education stakeholders have urged the government to reconsider some of the restrictive policies, arguing that Australia must remain competitive in the global education market. Countries like Canada and the UK continue to attract large numbers of international students by offering flexible visa policies and clear pathways to employment, whereas Australia’s recent policy shifts may make it less attractive in comparison.
The government faces the challenge of balancing migration control measures with maintaining Australia’s reputation as a leading global education hub. While ensuring infrastructure and housing can support a growing student population is essential, making education financially unattainable for international students could have long-term economic consequences.
Future Prospects for International Students in Australia
Australia continues to be a top-tier destination for higher education, but recent developments highlight the need for careful policy adjustments. Ensuring that international students continue to see value in studying in Australia will require measures to control rising costs, improve visa policies, and provide better post-study work opportunities.
The increasing financial burden and restrictive visa rules could drive students to explore alternative destinations, reducing Australia’s share in the global education market. Universities and policymakers will need to work together to address these concerns, ensuring that Australia remains an accessible and competitive destination for students worldwide.
