Australia is set to enact tougher visa regulations for foreign students this week, coinciding with the announcement of yet another record-high in migration figures. These changes are expected to compound existing pressures on the rental market, which is already strained.
Starting Saturday, the criteria for English language proficiency for student and graduate visas will be elevated. Additionally, the government will gain authority to suspend educational institutions found repeatedly violating regulations related to recruiting international students.
Home Affairs Minister Clare O’Neil emphasized the government’s commitment to managing migration levels responsibly, stating, “The actions this weekend will continue to drive migration levels down while delivering on our commitments in the migration strategy to fix the broken system we inherited.”
A new “genuine student test” will be introduced to ensure that international students genuinely seek education rather than primarily intending to work in Australia. Moreover, “no further stay” conditions will be applied more frequently to visitor visas.
These measures follow a series of actions taken last year to roll back COVID-era concessions introduced by the previous administration, including unrestricted working hours for international students. The government then indicated its intention to tighten rules for students, potentially halving migrant intake over two years.
Australia witnessed a surge in migration figures in 2022 to address labor shortages exacerbated by the COVID-19 pandemic. However, this influx, driven largely by students from India, China, and the Philippines, has intensified pressure on the rental market.
Recent data released by the Australian Bureau of Statistics revealed a 60% increase in net immigration, reaching a record 548,800 in the year ending Sept. 30, 2023, surpassing the 518,000 figure for the previous year. Consequently, Australia’s population expanded at the fastest pace on record, reaching 26.8 million people by September.
While the influx of migrants has contributed to labor supply and mitigated wage pressures, it has further strained the housing market. Rental vacancies remain at record lows, and elevated construction costs have hindered new supply.
Minister O’Neil highlighted the government’s efforts to manage migration levels effectively, noting a 35% decline in recent international student visa grants compared to the previous year.
