Student migrant visa rorts revealed

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By Leith van Onselen

Fairfax has revealed this morning that international student colleges are allegedly taking cash kickbacks in return for helping overseas workers and students win Australian visas using fake qualifications. Moreover, a college that had already been identified as being involved in education rorts was offered to apply for fast-tracked visa processes by the Department of Immigration:

Immigration offered TK Melbourne Education and Training College to apply for the expedited visa process in March, even though the Australian Skills Quality Authority had weeks earlier found the college to be in “critical non-compliance” with national standards.

Leaked documents reveal that the college has allegedly been providing fake qualifications costing tens of thousands of dollars, a practice that industry sources say is widespread and is often coupled with the exploitation of overseas workers.

The revelations come after the Australian Federal Police charged the owners of another international college, the St Stephens Institute, with serious fraud offences on Wednesday afternoon…

One of the charged men who part-owns the institute, Baljit “Bobby” Singh, has been paid millions of dollars by the federal government and Australia Post, despite repeated union warnings that he was exploiting overseas students and workers…

More details about these rorts are available from The ABC here.

Education exports are one of the few growth areas for the Australian economy. However, the system must not be abused and used merely for backdoor entry to Australia, as a pathway for permanent residency, and as a source of cheap labour for firms.

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Indeed, as noted by the RBA in its submission to the parliamentary inquiry into home ownership, “recent rule changes have made it easier for students to remain in Australia after graduation, including by becoming permanent residents”, and the Bank forecasts a huge increase in net migration from international students, particularly in Melbourne and Sydney:

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Given the recent rule changes, rorting of the student visa system is likely to increase unless there is strong oversight from Australia’s regulators.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.