Australia's move to cap student visas through back-door likely to hit Indians

The Australian government will use a legal workaround to limit the number of international students, a move expected to significantly affect Indian students, for whom Australia is one of the top destinations for higher studies. The Australian government is resorting to this after a bill to grant Education Minister Jason Clare the authority to cap student numbers at 270,000 by 2025 was rejected by Parliament.

Students from India form the second-largest group of foreign enrollees in Australia.

In 2022, over 100,000 Indian students were enroled in Australian institutions, a number that grew to more than 1.22 lakh by September 2023.

In 2023-24, the number of Indian students enroling in Australian institutions for higher studies decreased from 96,490 in March 2024 to 87,600 by June 2024.

So, any cap on the intake of foreign students will affect Indians who want to study in Australia.

The ruling Labor Party in November introduced a bill to give the education minister power to restrict international student numbers, but it faced opposition from the Coalition and Greens.

However, under the new workaround, immigration officials will prioritise student visa applications until the thresholds set by the government for education providers are met. Once these thresholds, amounting to 80% of the proposed caps, are reached, visa processing will return to standard priority, resulting in slower processing times for subsequent applications, as reported by ABC News.

AUSTRALIA'S MOVE COMES AMID RECORD MIGRATION

The move comes amid rising public concerns over record migration levels, with net immigration reaching an all-time high of 548,800 as of September 30, 2023. Increased migration has put pressure on housing and infrastructure, prompting the government to act.

The education sector is one of Australia’s largest export industries, generating A$36.4 billion (US$24.7 billion) in revenue during the 2022–2023 fiscal year. However, the government aims to balance this with domestic concerns.

In 2022, Australia increased its annual migration intake to help businesses address workforce shortages caused by strict border restrictions during the COVID-19 pandemic, which had blocked foreign students and workers for almost two years.

Migration, largely fuelled by students from India, China, and the Philippines, has boosted the labour force and helped keep wage pressures in check, but it has also worsened the country’s already strained housing market.

Labor aims to reduce immigration numbers back to pre-pandemic levels by limiting the number of international students starting to study in Australia next year, but this was blocked by parliament.

AUSTRALIA IMPLEMENTED OTHER WAYS TO CURB INTERNATIONAL STUDENTS

Australia has already implemented other measures to curb international student numbers.

The Australian government has increased the fees for international students, more than doubling the cost from AUD 710 ($473) to AUD 1,600 ($1,068). The increased fees will be effective from July 1.

The government has also made changes to the savings requirement for student visas. Australia has increased the minimum savings needed for a student visa from AUD 24,505 ($16,146) to AUD 29,710 ($19,576).

Additionally, temporary visa holders, such as those on graduate or visitor visas, can no longer apply for student visas while in Australia.