Australia’s international education sector is more than a collection of universities and classrooms—it is a cornerstone of the nation’s economic, cultural, and social vitality.
According to the JSA 2025 report, international students contributed over $50 billion to the economy in 2023-24, with tuition fees alone funding $5.6 billion in university research.
The report adds that beyond dollars, these students enrich campuses and communities, sharing ideas, fostering cultural diversity, and building connections that link Australia to its region and the wider world.
Many students also carry skills and experience back home, benefiting their countries, while those who remain help address workforce needs and contribute to Australia’s permanent migration program.
The report notes that international students who eventually gain permanent residency could deliver a fiscal dividend of up to $12 billion over their lifetimes (Coates et al., 2023). Yet, despite their promise, the report observes that many graduates find themselves working below their skill level and outside their field, which limits their potential contribution and risks Australia’s reputation for high-quality education.
The report highlights that Australia’s rise as a top destination for global students is no accident. For three decades, policy and reputation have combined to create a thriving sector. Australia is celebrated for its high-quality offerings, while visa settings have historically supported pathways from study to work and eventual permanent residency.
Stakeholders consulted for the report—including government, higher education, vocational training, and industry representatives—affirmed strong support for the sector but acknowledged tensions between its different purposes.
The report adds that since the 1980s, policy shifts have moved international education from being considered “aid” to a trade-driven model, linking student enrolment with potential migration opportunities.
Reforms over the years, including the Knight Review and the Simplified Student Visa Framework, boosted enrolments again after periods of decline, particularly in postgraduate programs like accounting, IT, and engineering. By 2023, enrolments had largely recovered from the COVID-19-related dips.
Migration aspirations are a central factor shaping the choices of many students.
The report observes that in 2022,
Nearly 70% of higher education students cited the possibility of migration as a reason for studying in Australia, rising to 77% of Indian students and 79% of Nepali students (Social Research Centre, 2023).
The report adds that migration goals influence not just the choice of study destination, but also course and occupation selection. Many VET students enrol in Commercial Cookery courses, while higher education students pursue nursing, accounting, IT, and engineering—all pathways historically linked to permanent residency. According to the report, this often means students prioritise visa outcomes over industry experience.
Yet, the journey is not without challenges. The report observes that international students are often vulnerable in the labour market. Temporary visa status, youth, and sometimes limited English proficiency can push students into lower-skilled work, including the shadow economy, exposing them to wage exploitation and precarious employment.
The report adds that studies show many students do not report underpayment due to limited knowledge of workplace rights or fear of repercussions, while widespread peer experiences of poor treatment amplify feelings of powerlessness.
The 2023 Nixon Review, cited in the report, found that
Disreputable providers and agents could criminally exploit temporary migrants, prompting government integrity measures in 2023 and 2024 (Department of Education, 2023; Department of Home Affairs, 2024).
Financial pressures further shape students’ experience. The report observes that many rely on part-time work to meet living expenses and send remittances home, sometimes at the expense of gaining relevant work experience.
The report adds that while some students align part-time jobs with study schedules, opportunities to work in their field are often limited, leaving graduates underprepared for the workforce.
Visa pathways play a critical role in how students navigate Australia’s system. Most begin on a Student visa (subclass 500) and may transition to a Temporary Graduate visa (subclass 485) to live and work after graduation.
The report observes that in 2022-23, 53% of graduates obtained a further visa after their Student visa, with 45% taking up a Temporary Graduate visa and 17% the now-closed Pandemic Event visa (subclass 408). The report adds that Temporary Graduate visas are the most common post-study option for higher education graduates, providing up to four years of work in any job, while VET graduates face shorter post-study periods linked to skills shortage occupations.
Visa settings, the report notes, can “funnel” students into courses and occupations outside their genuine interests. Structural visa requirements, such as employer or state sponsorship, are linked to better labour market outcomes and higher rates of permanent residency.
Despite constraints, the report observes that international students remain a critical pipeline for Australia’s skilled migration program. While permanent visa places are limited, successive temporary visas allow graduates to remain, gain work experience, and compete for permanent residency in future years. The report adds that median times to permanent residence are around 4.7 years for higher education graduates and six years for VET graduates, often requiring multiple consecutive visas.
The JSA 2025 report concludes that international students provide enormous economic, social, and cultural benefits, yet employment mismatches, financial pressures, and labour market vulnerability constrain their potential. Migration aspirations heavily shape course and career choices, and visa pathways continue to influence outcomes.
The report adds that reforms are needed to ensure international graduates can fully contribute, including strengthening visa integrity, supporting relevant work experience, and aligning education pathways with labour market needs.
By addressing these challenges, Australia can maximise the value of its international students—for the economy, for communities, and for the students themselves.
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