Why Australia attracts international students – even with higher costs of living

Economic Times

15-07-2025

iStock Australia continues to draw a steady flow of international students, including thousands from India, with its globally recognised education system. Despite regulatory changes and rising costs, the country remains a preferred destination, offering academic flexibility, post-study work options, and a multicultural learning environment.
Cultural, academic, and growing career opportunities
Australia offers more than just classroom education. Vocational Education and Training (VET) programs cater to job-ready skills in fields such as hospitality and early childhood education. Post-study work visas, especially subclass 485, allow up to four years of professional experience, creating pathways to permanent residency, according to a report by University Living.Students benefit from a multicultural environment, with learners from over 200 countries contributing to a vibrant campus life. Australia's universities are equipped with modern infrastructure, including research labs, high-speed internet, and digital learning platforms.Scholarships such as the Australia Awards and university-specific grants ease the financial burden. Some scholarships offer up to AUD 50,000 and are based on academic merit.'I chose Australia for its strong industry links and the global value of its degree. The support services and cultural exposure are an added bonus,' said one Indian student during the survey analysis by University Living,
Enrolment trends and spending patterns
As per a report by University Living, Australia has seen a strong rebound in international student enrolments since the pandemic-induced dip. Between 2021 and 2024, there was a 35.8% rise in international admissions. Future growth is projected at 5.3% annually, driven by high global demand for Australian degrees, particularly in technology and healthcare.Students increasingly opt for programs in engineering, IT, business, and health sciences, drawn by the practical learning methods and global career potential. English is the primary language of instruction, giving students an added advantage in international job markets.Spending by international students is significant. Average annual tuition ranges from AUD 20,000 to AUD 50,000 for undergraduate degrees, with postgraduate programs reaching up to AUD 55,000. MBA and specialist programs like medicine can exceed AUD 80,000.
Cost of living: A key concern
The average annual living cost in Australia now stands at AUD 29,710, according to the University Living report. Accommodation is the biggest expense, taking up 57%-64% of monthly budgets. In cities like Sydney and Melbourne, private apartments can cost up to AUD 3,400 a month.
Food, transport, and health insurance are also key budget items. Public transport passes range from AUD 172 to AUD 220 monthly, while eating out regularly can cost over AUD 540. Health insurance through Overseas Student Health Cover (OSHC) is mandatory, with annual premiums ranging from AUD 478 to AUD 800.
Visa policy evolution
Australia's visa rules have tightened recently. The report analysed, from July 2023, students are allowed to work only 48 hours per fortnight during term. A new Genuine Student (GS) requirement has replaced the older GTE system, focusing on academic intent.From January 2025, a National Planning Level (NPL) will cap new international enrolments at 270,000 per year. Applicants also need to show increased financial capacity-up to AUD 29,710, and meet higher English language standards, with IELTS requirements rising from 5.5 to 6.0.A new system under Ministerial Direction 111 prioritises offshore applications based on provider enrolment status. This replaces the older MD107 and aims to streamline visa processing without affecting current students.Despite rising costs, Australia remains a competitive education destination due to its flexible academic pathways, robust visa structure, and career-linked programs. However, students must prepare for higher costs and stricter eligibility norms in future. Although, with strategic planning, Australia offers long-term academic and career dividends that can prove to be useful for an individual.
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