Australia hikes minimum saving requirement for student visa, Indians likely to be hit

In what could hit Indian students planning to study in Australia, the government of Anthony Albanese has announced another significant change to its visa requirements for international students. The changes include requiring international students to show proof of savings of at least AUD29,710 ($19,576) to qualify for a student visa. This is the second hike in the amount in the last seven months.

The proof of savings requirement has seen a hike of $3,430 from AUD24,505 ($16,146) to AUD29,710 ($19,576).

This comes amid a surge in migration and concerns over fraudulent practices in student recruitment. The government of Prime Minister Anthony Albanese has introduced several measures to make the process of student visas tougher, including a higher IELTS score.

The recent adjustment in the proof of savings requirement follows a hike in October from AUD21,041 to AUD24,505.

Australia’s massive crackdown on student visas in its effort to cut annual immigration by half has hit Indian students hard. Amid claims of targeted visa denials to Indian students, a former Australian diplomat to India has expressed concern that such moves could hurt bilateral relations.

Australia saw a record number of migrants in 2023, and students from India, China and the Philippines drove the inflow.

DECLINE IN INDIAN STUDENTS VISAS

Visas granted to Indian students fell by 48% between December 2022 and December 2023, according to a report.

India continues to be the second-largest country for international student enrolments in Australia. It said 1.22 lakh Indian students were studying in Australia in the January-September 2023 period.

Additionally, the government is cracking down on education providers suspected of fraudulent recruitment practices.

These new rules are part of a series of changes Australia has made to student visas.

The changes started when a lot of people moved to Australia after Covid-19 restrictions were eased in 2022. This has caused problems with housing, so the government is making it harder to get a student visa.

Home Affairs Minister Clare O’Neil said warning letters have been sent to 34 education providers for “non-genuine or exploitative recruitment practices”. They could face serious consequences, including jail time and a ban on recruiting students, if found guilty.

“Dodgy providers have no place in our international education sector. These actions will help weed out the bottom feeders in the sector that seek to exploit people and trash the reputation of the sector,” O’Neil said in a statement.

SURGE IN MIGRATION STRAINING RESOURCES

Australia’s international education sector, one of its largest export industries, contributed AUD$36.4 billion ($24 billion) to the economy in 2022/23.

However, the surge in migration, primarily driven by international students, has strained resources, particularly rental markets, across the country.

Record migration, mostly driven by international students, has put the government under pressure.

Net immigration rose 60% to a record 548,800 in the year to September 30, 2023.

Tougher norms and an alleged targeted denial of visas to students from particular countries has seen the number of international students dip since 2023.

The government anticipates a significant reduction in migrant intake over the next two years.

“We are significantly reducing migration levels – we are in the middle of the biggest drop in migration numbers in Australia’s history, outside of war or pandemic,” stated O’Neil.

($1 = 1.5177 Australian dollars)