Australia, once hailed as a top destination for international students, is quickly losing its appeal. Recent data reveals a sharp decline in student visa applications, particularly from Indian students, who represent the second-largest source of international students in the country. According to a report by The Sydney Morning Herald, applications from Indian students have plummeted by 66%—a staggering drop that highlights the repercussions of the Australian government’s recent policy changes.
The introduction of higher fees and stricter visa regulations in July 2024 has resulted in a dramatic reduction in applications across the board. Overseas student applications have almost halved, realising the fears that many universities and educators had voiced. They warned that new government policies designed to curb migration could deal a significant economic blow to Australia’s international education sector, one of its most lucrative industries.
Decline in Applications from Key Source Countries
The numbers paint a bleak picture of the future of Australia’s international education market. In August 2024, just 15,270 offshore student applications were lodged, down from 30,703 in August 2023. This represents the lowest monthly total for August since 2015, excluding the pandemic years. The decline was also stark in July 2024, with only 18,697 applications compared to 36,207 during the same month in 2023.
In the first two months of the 2024-2025 financial year, only 22,967 offshore applications were submitted, almost half the 66,910 from the same period the previous year. This represents the lowest total for July and August since 2016. The vocational education sector was particularly hard hit, receiving just one-fifth of the applications it did in 2023.
These figures suggest that Australia’s once-thriving education market is on the brink of collapse. The government’s crackdown on migration, while politically motivated, has severely dampened the demand for Australian education, especially among students from South and South-East Asia.
A Policy Shift That is Alienating International Students
At the heart of this decline is the Australian government’s decision to raise the cost of student visas and introduce stricter immigration rules aimed at controlling the country’s migration levels. As of July 2024, the fee for an international student visa rose to AUD$1,600, making it more expensive for students to apply. Additionally, new caps on the number of international students allowed to enter the country have created a perception that Australia is no longer as welcoming or accommodating as it once was.
For years, Australia’s international education sector was a beacon of opportunity, with students from around the globe flocking to the country to take advantage of its world-class universities and vocational training programs. The Australian education system’s reputation for providing high-quality learning experiences attracted hundreds of thousands of students every year, making the sector a cornerstone of the nation’s economy.
However, the recent policy changes are sending a message to prospective students: Australia is not as open to international students as it once was. And it seems that students are listening. The dramatic decline in applications, particularly from India and other key markets in Asia, suggests that students are increasingly choosing to study elsewhere, in countries where they feel more welcome and where the financial burden is not as heavy.
The Economic Implications of the Decline
The economic impact of this downturn cannot be overstated. International education is Australia’s fourth-largest export industry, generating billions of dollars annually for the economy. The sharp drop in student numbers will have a ripple effect not only on universities and vocational colleges but also on the broader economy. International students contribute to local economies by paying tuition fees, renting accommodation, and spending money on goods and services. A reduction in student numbers will also mean fewer jobs in sectors like hospitality, real estate, and retail, which rely heavily on student spending.
Universities and other educational institutions have already started to feel the financial strain. Many universities had been bracing for a decline in international student numbers due to the government’s stricter policies, but the speed and severity of the drop have caught many by surprise. With fewer students enrolling, institutions will face budget shortfalls, leading to potential job losses, program cuts, and a decline in the quality of education.
The vocational education sector, which has long been a popular choice for international students seeking practical skills and work opportunities, has been particularly hard hit. Many vocational colleges are struggling to stay afloat as student numbers dwindle, and they are now forced to compete for a shrinking pool of applicants. This could lead to closures and further consolidation of the sector, limiting the options available to students.
The Global Impact: Australia Losing Its Competitive Edge
The decline in student applications is not just an economic issue; it’s a reputational one. Australia has long competed with other English-speaking countries like the United States, Canada, and the United Kingdom for international students. These countries are known for their welcoming policies and strong support for international students, which have helped them maintain a competitive edge in the global education market.
However, Australia’s recent policy shifts are eroding its standing as a top destination for international students. While other countries are actively working to attract students with scholarships, streamlined visa processes, and post-study work opportunities, Australia seems to be doing the opposite. As a result, students who might have considered Australia as their first choice are now looking to other countries where they feel more valued and supported.
Canada, in particular, has emerged as a strong competitor in the international education market. The country’s policies are designed to make it easier for students to apply for visas, work while studying, and transition to permanent residency after graduation. This approach has proven successful, with many students choosing Canada over Australia for their education. The 66% drop in applications from Indian students—who make up a large portion of Australia’s international student population—suggests that Australia is losing ground to more student-friendly nations.
The Need for a Policy Rethink
The Australian government’s approach to migration and international education has clearly had unintended consequences. While the goal may have been to control the country’s migrant intake, the result has been a significant blow to one of its most important industries. If Australia wants to remain a global leader in international education, it needs to rethink its policies and find a way to strike a balance between managing migration and maintaining a vibrant, thriving education sector.
One potential solution is for the government to work more closely with universities, vocational colleges, and other stakeholders to develop policies that support both the education sector and the broader economy. This could involve lowering visa fees, relaxing some of the more stringent immigration requirements, and providing additional support for institutions that rely heavily on international students.
Additionally, the government should consider introducing more flexible visa options for students who want to study in Australia. For example, allowing students to work part-time while studying and offering clearer pathways to permanent residency could make Australia a more attractive destination for students who want to build a life in the country after completing their studies.
Australia at a Crossroads
Australia is at a crossroads when it comes to its international education sector. The recent decline in student applications is a clear indication that the country’s policies are pushing students away, rather than attracting them. If the government continues down this path, it risks losing billions of dollars in revenue, damaging the economy, and tarnishing its reputation as a welcoming, world-class destination for education.
To turn the tide, Australia needs to rethink its approach to international education. The focus should be on creating policies that support students, educational institutions, and the broader economy, while also addressing the government’s concerns about migration. Only then can Australia regain its position as a global leader in education and ensure that it remains a top choice for students from around the world.
