The Australian government is set to implement stricter visa rules for foreign students this week, as official data revealed that migration to the country has hit yet another record high, which is likely to worsen the already tight rental market. Starting from Saturday, English language requirements for student and graduate visas will be raised, while education providers will face suspension from recruiting international students if they repeatedly break rules. These actions, according to Home Affairs Minister Clare O’Neil, will continue to push down migration levels while delivering on the government’s commitments in the migration strategy to fix the broken system left by the previous administration.
Additionally, a new “genuine student test” will be introduced to further crack down on international students who come to Australia mainly to work, and “no further stay” conditions will be imposed on more visitor visas. The Australian government has been taking steps since last year to close off COVID-era concessions introduced by the previous government, such as unrestricted working hours for international students. The current government said that these measures would reduce its migrant intake by half over two years.
To address the labor shortage brought about by the COVID-19 pandemic, Australia increased its annual migration numbers in 2022, which allowed businesses to recruit staff. However, the sudden influx of foreign workers and students has put further pressure on an already tight rental market. The Australian Bureau of Statistics released data on Thursday, showing that net immigration rose 60% to a record 548,800 in the year to Sept. 30, 2023, which is higher than the 518,000 people in the year ending June 2023. The country’s population rose 2.5% – the fastest pace on record – to 26.8 million people in the year to September last year.
The surge in migration, driven by students from India, China, and the Philippines, has expanded labor supply and restrained wage pressures. However, it has also exacerbated the already tight housing market, where rental vacancies hovered at record lows, and elevated construction costs have restricted new supply. Since September, the government’s actions have led to a decline in migration levels, with recent international student visa grants down by 35% compared to the previous year.
