International student arrivals surge on easy work rights

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Department of Home Affairs data released last month revealed that a record 42,700 offshore international students lodged a visa application to study in Australia in June, with many more applying in July:

“This is the largest number of offshore applications received in a single month in the last 10 years,” the department told education providers…

The department said that the high numbers seen in June are continuing, with an average of 10,000 student visa applications a week being received during July from offshore applicants. In comparison, only 34,015 student visa applications were received in June 2019, before the pandemic…

The surge in applications is beginning to flow through to actual arrivals, with 62,400 international students arriving in Australia in July, according to the Australian Bureau of Statistics (ABS) – the highest month since the start of the pandemic:

International student arrivals
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The surge in international student arrivals has driven up net permanent and long-term arrivals – a leading indicator for net overseas migration – which rebounded to 96,000 in the year to July:

Net immigration

International student arrivals have been juiced by the former Morrison Government’s decision last year to uncap the number of hours that international students can work while studying. This decision has led to an explosion of visa applications from non-genuine students from India and Nepal seeking backdoor work visas (with the hope of transitioning to permanent residency).

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As part of the Jobs & Skills Summit, the Albanese Government further expanded work rights for international students, knowing full well that it will lead to an avalanche of non-genuine visa applications from poorer nations:

The Government will:

  • Increase the duration of post study work rights by allowing two additional years of stay for recent graduates with select degrees in areas of verified skills shortages to strengthen the pipeline of skilled labour in Australia, informed by advice from a working group
  • Extend the relaxation of work restrictions for student and training visa holders until 30 June 2023 to help ease skills and labour shortages

Therefore, expect to see international ‘student’ numbers explode over the next year, which will help drive net overseas migration to record levels.

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‘International education’ was always a people-importing immigration industry rather than a genuine education export industry. It is a key plank of the ‘Big Australia’ mass immigration policy.

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.