Australia's international education sector, often celebrated as a cornerstone of the nation's economy, has become a conduit for immigration rather than a genuine pursuit of academic excellence for many Indian students. As highlighted by Leith van Onselen in his July 23, 2025, article, the dramatic rise in Indian student enrolments, coupled with significant remittance outflows and lax migration policies, reveals a troubling trend: the exploitation of Australia's student visa system as a pathway to work rights and permanent residency. This blog piece examines the mechanisms through which Indian students "game" the visa system, the role of migration pacts in facilitating this trend, and the economic and social implications for Australia.

Over the past two decades, the composition of Australia's international student population has shifted significantly. In 2005, India accounted for 24,642 students, a distant second to China's 63,635. By 2015, Indian enrolments had grown to 53,385, still trailing China's 135,844. Fast forward to January-April 2025, and Indian students numbered 123,456, closing the gap with China's 167,147. This surge reflects not only India's growing population and demand for education but also strategic exploitation of Australia's visa policies.

Education exports, which include tuition fees and living expenses, have followed a similar trajectory. In 2023-24, India contributed $8.9 billion to Australia's education exports, second only to China's $12.2 billion. However, these figures are misleading, as they do not account for the significant remittances sent back to India, estimated at $US4.8 billion ($A7.2 billion) in 2024 alone. These outflows, which closely track the volume of Indian students, suggest that much of the "export" revenue is earned within Australia through student employment, undermining the economic narrative of international education as a pure export industry.

The primary mechanism for gaming the visa system involves leveraging Australia's student visa program as a stepping stone to work rights and permanent residency. According to Ravi Lochan Singh, managing director of Global Reach, many Indian students secure visas by enrolling in high-ranked or "low-risk" universities, only to transfer to lower-cost private colleges after their first semester. These colleges often offer degrees with minimal academic rigour, serving as a front for students to work full-time while maintaining visa compliance.

This practice is facilitated by onshore immigration agents who guide students through the process, exploiting loopholes in visa regulations. A 2022 Navitas study revealed that South Asian students, including those from India, choose work rights, low-cost courses, and pathways to permanent residency over educational quality. Similarly, the IDP Emerging Futures survey found that 52% of international students value post-study work rights above all else, with 43% taking pathways to permanent residency. For Indian students, Australia's generous post-study work visa options, up to eight years for graduates of Australian tertiary institutions, are a significant draw.

Social media posts on X further highlight this trend. One user claimed that Indian students enrol in Australian master's programs to secure visas, then use fake offer letters from "body shops" to enter the U.S. H-1B visa pipeline, suggesting a broader pattern of visa system manipulation. Another post described students using "ghost colleges" to gain work rights and eventual residency, with minimal focus on education. While these claims are anecdotal and inconclusive, they reflect a growing perception that Australia's visa system is being exploited.

Australia's migration policies, particularly those established through bilateral agreements with India, have exacerbated this issue. The Australia-India Economic Cooperation and Trade Agreement (ECTA), signed in 2022, enhances market access for Australian education providers while offering Indian students extended post-study work rights: up to 18 months for diploma holders, two years for bachelor's degrees, three years for master's degrees, and four years for doctoral degrees, with an additional year for STEM graduates with First Class Honours.

The Migration and Mobility Partnership Arrangement (MMPA), signed in May 2023, further liberalises mobility by introducing five-year student visas with no cap on numbers and the Mobility Arrangement for Talented Early-professionals Scheme (MATES), which offers 3,000 two-year work visas annually for Indian graduates and early-career professionals. These agreements, coupled with the Mechanism for Mutual Recognition of Qualifications (signed in March 2023), streamline the validation of Indian credentials, making it easier for students to transition from education to employment in Australia.

While these pacts aim to foster economic and cultural ties, critics argue they prioritise quantity over quality. Sustainable Population Australia has warned that the MMPA's lack of visa caps could lead to unsustainable migration levels, with net overseas migrationat 400,000 in 2023-24 and 315,000 in 2024-25. The absence of stringent oversight allows non-genuine students to exploit these pathways, contributing to population pressures and straining resources like housing.

The economic narrative surrounding international education is flawed. The Australian Bureau of Statistics (ABS) inflates education export figures by including all student spending, regardless of whether it is funded by domestic earnings. When adjusted for remittances, the net economic benefit is significantly reduced. For instance, the $A15 billion in net remittance outflows in 2024 offsets nearly a third of the $51 billion education export figure, with India alone accounting for a substantial portion.

Socially, the influx of Indian students has fuelled tensions, particularly in the housing market. The lack of mandatory on-campus housing for international students exacerbates rental shortages, as noted by Leith van Onselen. Moreover, reports of visa fraud, such as fake documents from students in Gujarat and other Indian states, have led top Australian universities to impose bans on applications from certain regions, highlighting the scale of the problem.

The reliance on Indian students as a migration pipeline also risks diluting educational standards. Private colleges, often described as "ghost colleges," opt for profit over quality, offering courses that serve as backdoors to work rights. This undermines the integrity of Australia's education system and devalues degrees for genuine students.

To curb the exploitation of the student visa system, Australia must adopt stricter policies. Leith van Onselen suggests limiting graduate visas to top-performing students, imposing levies on international student enrolments to fund public services, and requiring universities to provide on-campus housing proportional to international student numbers. These measures would rank quality over quantity and mitigate the economic and social costs of unchecked migration.

Additionally, the Department of Home Affairs should enhance visa compliance checks to prevent transfers to low-quality colleges and crack down on fraudulent practices by immigration agents. While the MATES scheme and other agreements aim to attract skilled professionals, they must include robust safeguards to ensure participants are genuine students or professionals, not opportunists seeking residency.

Australia's international education sector, while a significant economic driver, has become a vehicle for immigration scams, particularly among Indian students. The combination of generous visa policies, lax oversight, and profit-driven private colleges has created a system ripe for exploitation. By choosing work rights and permanent residency over education, many Indian students undermine the integrity of Australia's visa program and strain its economic and social fabric. Policymakers must acknowledge this "immigration racket" and implement reforms to restore the sector's focus on quality education and genuine economic contributions. Only then can Australia balance its economic interests with the need for sustainable migration and social cohesion.

Most importantly, the Australian freedom movement needs to get the guts to take on the evil and corrupt universities, the source of much of our problems. Just think about where all this Leftist woke social toxins comes from, poisoning the body social!

https://www.macrobusiness.com.au/2025/07/how-indian-students-game-the-visa-system/