Halfway into the Australian fiscal year, we predicted that 2022/23 would shatter full-year student visa highs for the country’s international education sector. The fiscal year ended in June, and the full-year data shows that the sector did, in fact, finish way ahead of previous records.
Nearly half a million international students were granted an Australian student visa in 2022/23.1 That’s an increase of 41% over 2018/19, the previous full-year high, and means that the sector maintained the momentous pace it set during the first half of the year.
Today, we’ll dive deeper into this record-sitting year. We’ll unpack which student populations drove the sector’s momentum, where they choose to study in Australia, and much more.
Key Insights at a Glance
- Over 499,000 international students were granted an Australian student visa in 2022/23.
- Chinese students accounted for more than 95,000 of those granted student visas and represented Australia’s top student population.
- Australia’s higher education sector accounted for 52% of all granted student visas.
- Granted student visas were up by at least 16% in every Australian state and territory.
Granted Student Visas Reach New Record High in Australia
Australia reopened its borders to students in December 2021. This means 2022/23 represented the first full fiscal year unaffected by the COVID-19 border closure since 2018/19:
Reaching nearly half a million granted student visas marks a major feat for the sector, which remained suppressed during parts of three straight fiscal years before 2022/23. And fiscal year 2022/23 saw 41% more student visas granted than the previous record year.
In other destination markets, numbers spiked following border reopenings as pandemic-related deferrals led to a “double cohort effect.” While it’s unsurprising to see a similar effect occurring in Australia, the new Albanese government also deserves significant credit for renewing the country’s global competitiveness. The government’s recent expansion to post-graduation work rights makes Australia the most generous of the four major English-speaking destinations when it comes to allowing students to stay and work in the country after completing their studies.
What’s more, the Australian government’s student visa reforms may allow study applicants to indicate a desire to migrate to the country. Confusing and non-transparent application messaging is a major roadblock in most destination countries. Eliminating this barrier for dual-intent students (those who wish to study and then migrate afterwards) should help push Australia even further ahead of its competition when it comes to attracting high-quality students who wish to stay and work post-graduation.
While we don’t anticipate another 41% gain in 2023/24 since the post-pandemic double-cohort effect will lessen, the positive student-oriented policies of the Albanese government should keep Australia at the forefront of competitiveness in the global sector. Expect another strong year for international education in Australia in 2023/24.
Australia Reverses Global Trend of Softened Chinese Student Interest
Chinese student interest in English-speaking destination markets has softened over the past few years. For example, recently released UK data shows that visas granted to Chinese students in the year ending June 2023 remained below pre-pandemic levels. This softened interest has been in part due to China’s adherence to its “zero-COVID” policy through December 2022, as well as a mixture of geopolitical tensions and maturing domestic capacity within China for higher education.
But Australia’s reversing the trend that other English-speaking destinations are seeing:
More than 95,000 Chinese students were granted a student visa in 2022/23. This new record high of Chinese students represented growth of 17% over 2018/19, and kept China as Australia’s top source country for students. The proximity of the two countries may contribute to Australia’s growth compared to other English-speaking destinations, as data analysis has shown that Chinese students regularly engage with Australian-centric internet sources.
But Chinese students weren’t alone in setting a new record high for granted visas in 2022/23. In fact, each of Australia’s top 10 student populations reached new heights. Student visas granted to students from Colombia, Thailand, the Philippines, and Pakistan more than doubled over the previous fiscal year.
The table below shows how each top 10 country compared to 2018/19:
It’s worth highlighting that while Australia saw strong growth of Chinese students relative to other English-speaking destinations, China had the lowest growth rate of Australia’s top 10 student populations. While this is a common trend for countries that have higher baselines like China, overall growth was likely suppressed by “zero-COVID” and geopolitical tensions as well. After China ended the policy in the middle of December 2022, Australia saw 17,500 more applications lodged from Chinese students during the January-to-June months than in the previous six months of the fiscal year.
New Highs for Higher Education, VET, ELICOS, and Postgraduate Research
The majority of Australia’s study levels benefited from the sector’s strong year. Higher education, vocational education and training (VET), english language intensive courses (ELICOS), and postgraduate research each set a new record for granted student visas:
Over 261,000 international students were granted a student visa in higher education in 2022/23. That represented 52% of all student visas granted in the Australian education sector, and marked growth of 38% over 2018/19. Chinese students accounted for 31% of student visas granted in higher education, while Indian students accounted for another 24%.
Student visas for VET grew by 49% in 2022/23 over the previous high. The Philippines has been a significant source of students for this study level. In 2018/19, Filipino students accounted for 8% of all VET visas granted. This grew to 14% in 2022/23. Additionally, VET regularly represents over 70% of all granted student visas to Filipino students, including 78% in the last fiscal year.
Perhaps the most impressive growth came from ELICOS. This study level was up 83% compared to its previous high. Latin American (LATAM) students played a significant role in this study level’s success. ELICOS accounted for 76% and 57% of all student visas granted to Colombian and Brazilian students, respectively. In turn, these two respective student populations represented 36% and 17% of all granted visas for ELICOS last year. This growth coincides with the launch of the Study Australia Experience platform, which specifically targets LATAM recruitment.
The 10,300 student visas granted to students in post-graduate research in 2022/23 surpassed the previous record high by 52%.
More International Students in Every Australian State and Territory
Every Australian state and territory benefited from the education sector’s momentous year:
The number of granted student visas grew in each state and territory by at least 16% in 2022/23 compared to 2018/19. Northern Territory, Western Australia, and South Australia saw the three largest percentage growths over this time frame.
What’s even more impressive is the strides the country has made to decentralize its student study locations. In 2018/19, New South Wales, Victoria, and Queensland respectively accounted for 37%, 28%, and 20% of all student visas granted. But in 2022/23, these states’ proportion of student visas granted dropped by one or two percentage points each. This shift coincides with recruitment incentives that have informed students about study opportunities outside of the major cities of Sydney and Melbourne, as well as promotion of the Second Post-Study Work stream, which can add additional years of post-graduation stay for students in designated regional areas.
Looking Forward
We anticipate another strong year for Australian international education in 2023/24. But the sector should anticipate that new success brings new challenges.
Affordability, particularly with housing, has become a global issue. The Albanese government has targeted building 1.2 million new homes over five years, starting July 2024. However, just how many of these homes will help students find suitable housing remains to be seen—National Cabinet has agreed to harmonise and strengthen renters’ rights across Australia in the Better Deal for Renters attachment, but critics suggest that the proposed rent protections don’t go far enough. Solutions to the housing problem will require strategic planning and coordination across all levels of government. Strides toward decentralizing where students choose to study, such as through the regional work visa, will also help.
With that in mind, institutions should consider investing more into student housing. As housing shortages are impacting every destination market, the ability to show prospective students tangible and real support on this front will create an immense competitive advantage.
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FOOTNOTES:
1. All data courtesy of the Australian Department of Home Affairs (ADHA). All data reported according to Australian governmental financial years, which span from July of one year to June of the next year (for example, July 2022 to June 2023 was the 2022/23 year). The data used for this article includes subclass 500 and subclass 570 to 576 visas granted to primary applicants only.
