Magdiel Silva Da Luz has a job, a partner and an almost-complete master’s of strategic communications. But would he choose Australia again? “I would definitely think twice,” the Brazilian international student told The Herald, which reported on the growing disillusionment among international students. His sentiment is not an outlier; Australia’s $54 billion international education industry is facing a perfect storm of high costs, restrictive policies, and a rising tide of populism that is making the nation a less attractive destination for global students.
A Perfect Storm of Costs and Policy Shifts
The reasons for the shift are stark. Students now face the world’s highest visa application fees, eye-watering degree costs, and an extraordinary cost of living. Add to that changes to work rights and a so-called “genuine student test,” and the appeal of an Australian education begins to erode. But it’s the rising tide of populism that has most alarmed students. “When I arrived [in 2022], the situation was a bit more open for international students,” Silva Da Luz said. “Now it seems like it’s a bit more unstable, it feels a bit more insecure.”
The political climate is a key factor. Silva Da Luz recalls leaving Brazil under former President Jair Bolsonaro, whom he describes as “very conservative and very homophobic,” seeking a more accepting environment in Australia. “Now I’m here and it’s happening again,” he said, reflecting on the increasingly hostile public migration debate. The Herald spoke to numerous international students who alleged experiencing “microaggressions,” from rude comments to being spat at. All reported feeling less welcome, and none wanted to be identified for fear of reprisal or visa cancellation.
Government Slashes International Student Visas
The Albanese government has announced sweeping reforms aimed at curbing international student numbers, including barring family members and ending “visa hopping.” Hardline plans to slash numbers have also been announced by both the Coalition and One Nation. The government’s stated goal is an “excellent study experience for students who then return home,” a vision starkly at odds with reality, as about 170,000 former students currently linger on temporary bridging visas after graduation.
Visa data reveals the scale of the change. Between July and September of this year, just 31,000 higher education visas were granted—a 40 per cent decline since the peak in 2024 and down 16 per cent on pre-pandemic 2019 figures. This decline spells big trouble for universities, which rely heavily on funding from international students. “For years, governments have asked universities to do more while public funding has failed to keep pace,” said Luke Sheehy, CEO of Universities Australia. This year, The Herald revealed the University of NSW and the University of Sydney each took $1.7 billion from international students.
The financial strain is already being felt. “It’s pretty serious,” higher education expert Andrew Norton commented. “We’ve already seen a couple of unis announcing job cuts due to this – Adelaide University, Murdoch University, Charles Sturt University. This will be, in my view, extremely common over the next few years.” International student fees subsidize domestic ones, particularly at smaller and regional universities. They are also critical for research funding, with just over half of all research coming from dedicated sources and the rest from other income, including student profits. Norton said there was absolutely no doubt that international students were critical for the scale, but that there was simply no way those sums could add up without significant international student profits.
The Ripple Effects on a Global Scale
With all future governments planning to rein in numbers, universities face a friendless future, and the students who prop them up are increasingly weighing whether to go elsewhere.
For the students themselves, the calculus is changing. The promise of a high-quality education in a welcoming environment is being weighed against the high costs and perceived hostility. As the political rhetoric heats up, the future of Australia as a global education destination hangs in the balance, its $54 billion industry at a critical juncture.
Charting the Course: What Lies Ahead
The government’s focus on “composition, quality and integrity” over raw numbers signals a fundamental restructuring of the sector. The path forward for Australia’s universities will be fraught with challenges.
“I don’t feel like it’s our fault, most of the problems that the country has,” Silva Da Luz said, capturing the sentiment of feeling unfairly targeted. “So it’s very hard to have [people say] ‘Oh international students are the problem, so let’s just boot them.’”
