International students flock to Australia

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The latest data from the Department of Education shows that a record 1.1 million international students were enrolled in Australia at the end of 2024, nearly 250,000 higher than the 2019 pre-pandemic peak:

International student enrolments

The number of graduate visas on issue hit a record high of 222,200 in Q1 2025, more than double the 2019 pre-pandemic peak:

Graduate visas on issue
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The number of bridging visas on issue also hit a record high of 379,800, driven in part by former students refusing to return home and appealing to the Administrative Review Tribunal:

Bridging visas

The notion that federal government caps have reduced international student numbers doesn’t pass scrutiny.

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New research by Dutch analytics company Studyportals has found that Australia was the only major destination to register an uptick in international student demand over the first three months of 2025.

The report is based on survey responses from 240 institutions in 48 countries, mostly the key education destinations of the US, UK, Canada, and Australia.

The study found that Australia’s share of international student demand has climbed by 8% so far in 2025.

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Undergraduate enrolments in Australia were up 9% on last year, with over 60% of institutions reporting increases.

Changes in undergraduate enrolments

Source: Study Portals Global Enrolment Benchmark Survey

However, postgraduate enrolments in Australia were down 13% from last year even though 54% of institutions reported increases.

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International postgraduate enrolments

Source: Study Portals Global Enrolment Benchmark Survey

The newly reelected Labor government must stem the growth in student and graduate visas by targeting quality over quantity via the following types of reforms:

  • Increasing English-language proficiency criteria and require prospective students to pass entrance exams before applying for a study visa.
  • Increasing financial requirements, including requiring students to deposit money in an escrow account before coming to Australia.
  • Limiting the hours overseas students can work and abolishing the direct relationship between studying, working, and acquiring permanent residency.
  • Closing down the numerous dodgy private colleges that operate as visa mills.
  • Allowing only distinction-level or higher international graduates to gain post-study 485 graduate visas.
  • Allowing only postgraduate overseas students to bring family members with them into Australia.
  • Increasing the temporary skilled migration income threshold to more than the median full-time earnings (currently around $95,000).
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The Albanese government must also tighten up the appeals process for the Administrative Review Tribunal to stop temporary migrants (including students) from gaming the system to remain in Australia after their visa has expired.

These reforms would lower the number of international students, graduates, and bridging visa holders while lifting the average quality and productivity of the migration system.

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.