Every year, tens of thousands of international students choose Australia for a world-class education. They bring talent, ambition and diversity – not to mention a contribution of more than $50 billion annually to our economy.
But behind the glossy brochures and economic figures lies a harsher truth: Australia’s education system depends on international students financially, yet not only does it do little to include or support them, it makes things harder for them with burgeoning costs and limited mechanisms to pay for tuition fees and living expenses.
In 2023, Australia increased the minimum savings required for a student visa by 17%, rising to $24505. Then, in 2024, we doubled down with a 125% hike in student visa fees to $1600 — making them amongst the highest globally – an additional rise has been promised by the incoming government to $2000. While the government claims these policies target illegitimate students, in reality, they disproportionately affect genuine students from lower-income backgrounds and risk narrowing access to only the most privileged.
Take Prasath*, a top-performing student from India who was accepted into a Master of Engineering at a leading Victorian university. He had to defer — not due to merit, but because his family couldn’t immediately prove access to $24,000 in annual living expenses, on top of tuition. Or Amy*, an aspiring speech therapist from the UK, who was almost going to have her enrolment terminated from another Victorian university. She is now a full-time speech therapist in Melbourne, helping school children.
Stories like these aren’t rare – they’re routine – and they expose a critical contradiction: while we continue to welcome international students in rhetoric, our financial infrastructure around international education sends the opposite message. The changes in proof of fund requirements and visa fee hikes came with barely a whisper of concern for how this might be perceived globally. It’s as if Australia believes it holds a monopoly on international education, that students don’t have other options. But they do.
While we debate how best to ration international enrolments across domestic institutions, students are already looking elsewhere. Canada, New Zealand, the UK, and even the US are introducing clearer financial pathways for international students to assist with tuition and living costs, while Australia has barely shifted and offers little in financial support. Where others are offering inclusive messaging, underpinned by higher visa approval rates and stable post-study work options, we’re circulating headlines like ‘Crackdown on international students to fix housing crisis’.
The result of these actions has seen international postgraduate enrolments fall by more than 20% in some categories. Simultaneously, countries like New Zealand, Germany, and Ireland are seeing strong growth in international student numbers. These are not blips – they are the direct consequences of policy change. If we continue down this path, we will lose the very students we claim to want; those studying in STEM fields, healthcare, and education – areas critical to our future workforce and consistently listed on the National Skills Priority List.
International students can no longer be considered “visitors” in our economy. They keep regional universities open, support small businesses, and help sustain Australia’s higher education system in the face of domestic enrolment decline. They enrich classrooms, broaden global ties, and fuel innovation. Without them, we will be less connected, less competitive, and economically worse off.
At Spark Finance, we’re working to remove financial roadblocks for students, including students like Prasath* and Amy* who have been overlooked by traditional banks or can’t afford the fees that are required. They can’t access domestic loans without collateral or a local guarantor. Yet their potential is undeniable, and our current policies are pushing them away.
Private solutions can only go so far. What we need is systemic change: a review of visa costs and proof-of-funds thresholds through an equity lens. Recognition of responsible alternative lenders in visa and admissions processes. Stronger partnerships between government, universities, and finance providers. And, a national strategy that treats international students as future contributors to our society and economy, not commodities.
We can’t market ourselves as an inclusive, world-class education destination while hiking fees and excluding those who can’t pay upfront. We can’t claim to value global talent while sending signals that students are burdens, not contributors.
The truth is: other countries are doing better. If we keep ignoring that, we will lose the next generation of global leaders – not to chance, but to choice. It’s time for Australia to decide: are international students a transaction, or are they part of our future?
*Student names have been altered in this article for anonymity.
Ewen Hollingsworth is the Co-Founder of Spark Finance, an Australian fintech company that provides financial assistance for international students. Previously he was a management consultant, focusing on the Higher Education and Financial Services sectors.
