‘Not our fault’: The students having second thoughts about Destination Australia

“Destination Australia” is shorthand for Australia’s role as an international study destination. It includes the education system, the visa pathway and the wider experience of living in the country. The phrase matters because students are now questioning whether that destination still offers enough security and value.

Magdiel Silva Da Luz arrived from Brazil in 2022 and is completing a master’s of strategic communications. He has a job and a partner, but says he would “definitely think twice” about choosing Australia again. He links that doubt to rising costs, changing work rights and a more hostile public debate about migration.

The sector is now facing planned reductions in student numbers. The Albanese government wants to change visas and reduce growth, while the Coalition and One Nation have announced harder cuts. That could weaken universities’ finances and make Australia less appealing to future students.

International students are reconsidering Australia because studying and living there has become more expensive and uncertain. The article points to the world’s highest visa application fees, very high international degree costs, an extraordinary cost of living, changing work rights and a new “genuine student test”. Together, these changes weaken the value and predictability of an Australian education.

The social climate is another major concern. Students told the Herald about alleged microaggressions, including rude comments and being spat at. Magdiel Silva Da Luz said Australia felt more open when he arrived in 2022, but now feels unstable and insecure. He had left Brazil partly because of its conservative politics and homophobia.

The migration debate has made students feel less welcome. None of the students interviewed wanted to be identified, fearing government reprisal or visa cancellation. Planned reductions in enrolments could deepen that uncertainty and make Australia harder to choose as a study destination.

Demand is falling sharply. Visa data shows that 31,000 higher education visas were granted between July and September this year. That was 40 per cent below the peak in 2024 and 16 per cent below the pre-pandemic figure from 2019. The decline is significant because international education is a $54 billion Australian industry.

Universities depend heavily on international fees. The University of NSW and the University of Sydney each took $1.7 billion from international students this year, according to figures revealed by the Herald. Those payments help fill the gap left when public funding does not keep pace with teaching, research and infrastructure costs.

The sector’s importance therefore extends beyond visa numbers. Fewer students could reduce university revenue, threaten jobs and weaken research capacity. The government wants to prioritise composition, quality and integrity rather than enrolment growth, but universities face major financial pressure as demand declines.

Australian governments are proposing tighter controls on international education and migration. The Albanese government has announced reforms intended to curb numbers by barring family members of international students and ending visa hopping. It also refers to a “genuine student test” as part of the changing system.

These measures would directly affect prospective students and the family members who might accompany them. Ending visa hopping would also change how students move between visa arrangements. The Coalition and One Nation have announced hardline plans to slash international student numbers, extending the pressure beyond the current government’s reforms.

Universities would feel the financial effect because international students provide major fee income. The government says it wants a sector focused on composition, quality and integrity, with students having an excellent study experience before returning home. Yet about 170,000 former students are currently on temporary bridging visas after graduation, showing the system is already more complicated.

A sustained fall in international enrolments would remove a major source of university income. Universities use international student fees to help cover teaching, research and infrastructure costs. If that revenue drops, institutions may need to cut spending, reduce staff and limit research activity.

The article already points to job losses. Adelaide University, Murdoch University and Charles Sturt University have announced cuts, and higher education expert Andrew Norton expects this to become extremely common. Smaller and regional universities could be especially exposed because international fees help subsidise domestic students at struggling institutions.

Research would also face pressure. Norton says international students are critical to research at scale, because significant international profits help bridge the gap between research costs and other income. Fewer enrolments could therefore affect both university employment and the breadth of research. The consequences would unfold as planned visa reductions come off an already declining base.

Australian universities rely on international fees because public funding has failed to keep pace with rising costs. Universities Australia CEO Luke Sheehy says governments have asked universities to do more while funding has not matched the cost of teaching, research and infrastructure. International education has helped fill the resulting financial gap.

The model makes international students a major source of flexible income. The University of NSW and the University of Sydney each received $1.7 billion from international students this year. Those fees can support activities that public funding does not fully cover, including domestic teaching and research. They are especially important for smaller and regional institutions.

This reliance creates vulnerability when visa grants and enrolments fall. The government wants fewer, higher-quality enrolments, but lower numbers could leave universities with less money for staff, facilities and research. The article therefore presents international education not as an extra stream, but as part of the funding structure universities currently depend on.

International student fees support more than the students who pay them. Australian universities use this income to help cover teaching, research and infrastructure, while also subsidising domestic students. This is particularly important at smaller and regional universities that are financially struggling.

The mechanism is cross-subsidy. Fees from overseas students provide income that can be used across university operations, including domestic education. The University of NSW and the University of Sydney each took $1.7 billion from international students this year. The article also says research depends on profits from international education alongside commercial operations and endowments.

That arrangement becomes fragile when enrolments fall. Higher education expert Andrew Norton says international students are critical to research at scale and that other income would not add up without significant international profits. Declining visa grants and planned reductions could therefore mean less support for domestic teaching, fewer jobs and reduced research capacity.