History doesn’t repeat but it sure does rhyme.
Following a strategic review of the student visa program in 2011 (‘the Knight review’), the Gillard Government liberalised graduate (485) visas in 2013.
Specifically, 485 visa holders were excluded from needing to meet the Australian standard for an occupation on the Skilled Occupation List. They were also permitted to remain in Australia for between two and four years post study, rather than the previous 18 months.
The Knight review was strongly in favour of expanding post study work rights because of the significant benefits to Australian universities and Australian employers. That is, following these changes, international students would be more likely to choose to study in Australia because of more favourable visa arrangements.
Not surprisingly, Australia’s graduate (485) visas are considered one of the most attractive of their kind in the world because they provide full work rights to international students. They are also treasured by international students because they are widely perceived as a pathway to permanent residency.
As Peter Mares explains:
Knight stated plainly that an expanded work visa was essential to “the ongoing viability of our universities in an increasingly competitive global market for students.” Vice-chancellors also made the connection explicit. At the time, Glenn Withers, chief executive of Universities Australia, said that Knight’s “breakthrough” proposal was as good as or better than the work rights on offer in Canada and the United States.
With this background in mind, it is curious that the Morrison Government has extended eligibility for post-study work visas to future students who study online from overseas, in a bid to incentivise them to enrol in Australian universities:
The eligibility was extended to future student visa holders on Tuesday, just one day after an announcement offering post-study work visas to current international student visa holders who have been forced to study online from other countries due to COVID-19 travel restrictions.
A spokesperson for Acting Immigration Minister Alan Tudge confirmed the change, which is a major boost to universities and other education institutions enrolling international students.
It means that students and prospective students now have more certainty about their right to a post-study work visa, which allows them to remain in Australia and work for a period after they complete their course…
The change will help overcome barriers that make Australia less attractive to international students compared with competitor countries.
This is more evidence that the international education industry is really just an immigration scam, with universities acting more like migration agents than educators.
The deleterious impact on Australia’s labour market has been conveniently ignored, including the local graduates that will suffer from increased competition for jobs and lower wages.
Again, unlike temporary skilled shortage (TSS) visas, holders of graduate (485) visas are not required to be qualified for any of the jobs on the Skilled Occupation List. They do not need a firm offer of work from an employer. They are not required to be paid a minimum salary. Nor must they find a job related to their qualifications or require a certain level of skill.
Basically, 485 visa holders may work or study in any job, for any employer. And their visa remains valid even if they cannot find a job.
Any increase in graduate (485) visas presents another positive labour supply shock that will lower the bargaining power of younger Australians and local graduates, in turn placing downward pressure on wages.
Rather than generously loosing access to the 485 visa, it should be tightened significantly. Otherwise, wage growth will never recover, especially given current high unemployment.
