Crackdown on international students “too little, too late”

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Private colleges in Australia are reportedly blocking applications from students in India, Pakistan, Nigeria and other countries as part of an “unprecedented reaction” to the government’s visa crackdowns.

I discussed this and other issues in an interview conducted with Sky News’ Danica De Giorgio, which was aired on Tuesday night.

Below are the highlights of the segment discussing international students.

Danica De Giorgio:

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Was this always going to happen as a result of the government’s new migration strategy?

Leith van Onselen:

It’s a little bit too little, too late.

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The Albanese government unfortunately opened the immigration floodgates after the 2022 Jobs and Skills Summit. And that was basically led by international students.

Unfortunately, many of these students weren’t genuine and they’ve used dodgy private ghost colleges to come to Australia for backdoor permanent residency.

So, these changes by Labor are in response to the widespread rorting by these fake students, and also Australia’s record immigration flows.

Danica De Giorgio:

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What impact could fewer foreign students have on our economy?

Leith van Onselen:

It will have an impact on the economy. All migration does. So if you have less inputs in people – i.e. students – you’re going to have less outputs in terms of economic activity and gross domestic product.

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But obviously, having fewer fake students in Australia will improve the overall quality of the migration system. It should boost productivity and reduce pressure on housing and infrastructure.

So, it’s a positive development. Although it’s too late and after the horse has already bolted.

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.