Indian Students and Australia’s Money Drain: The Hidden Cost of International Education, By James Reed

 Universities love to trumpet international education as Australia's golden goose, claiming it's the fourth-largest export at $51 billion in 2023-24. But Leith van Onselen (Macrobusiness, July 15, 2025) exposes this as false, arguing that Indian students, a major chunk of the international student cohort, are draining billions from Australia through remittances. This blog piece backs van Onselen's case, showing how the university-driven narrative inflates economic benefits while ignoring the massive outflow of cash to India.

Van Onselen nails it: the Australian Bureau of Statistics (ABS) is peddling a fantasy by counting every dollar spent by international students, tuition, rent, groceries, as an "export," even when it's funded by Aussie wages. In 2024, Australia haemorrhaged US$10.1 billion (over A$15 billion) in net remittance outflows, with Indian students playing a starring role. Money Transfer Australia reports that US$4.8 billion (A$7.2 billion) was sent to India alone, driven by the 118,000 Indian students studying here (Outlook India, 2023). That's money leaving Australia, propping up families and economies in India while universities pat themselves on the back.

These remittances aren't pocket change. They track closely with the ballooning number of international students, especially from India, who make up the second-largest student group. With Australia's Indian diaspora at 780,000 and net migration projected to hit 1.3 million by 2025, Indian Link predicts even bigger outflows. Every dollar wired to India is a dollar not circulating in Australia's economy, an import, not an export. Van Onselen's right: the ABS's $51 billion figure is a sham, inflated by dodgy accounting that ignores this reality.

Universities push the "economic boon" narrative to justify sky-high tuition and lax visa policies, but it's a house of cards. Indian students often work low-wage jobs in retail or hospitality to fund their studies, earning Australian dollars that they promptly send overseas. About a quarter of their spending, $13 billion in 2023-24, comes from local wages, not foreign cash injections. Yet the ABS counts every cent as an export, as if it's all fresh money boosting Australia. This is academic sleight-of-hand, designed to keep the international student gravy train rolling.

The real kicker? These remittances don't just dent the economy; they expose universities' reliance on foreign students as a cash cow. Instead of investing in local students or fixing broken funding models, unis chase Indian enrolments to pad their budgets, knowing full well that billions are siphoned out of Australia. It's a system that values profit over national interest, leaving Aussies to foot the bill for infrastructure and services used by students who send their earnings abroad.

The "Indian students drain money" argument isn't about scapegoating; it's about calling out a flawed system. Universities hide behind glossy export figures while remittances erode the economic benefits they claim. That US$4.8 billion sent to India could fund local schools, hospitals, or small businesses, but instead, it's fuelling India's economy. With migration set to surge, this drain will only deepen, hitting Australian taxpayers and workers hardest.

Van Onselen's critique exposes the university sector's dirty secret: international education isn't the win-win they sell. It's a leaky bucket, with Indian students, playing a big role in the outflow. The ABS needs to stop cooking the books and account for remittances as the imports they are. Until then, the $51 billion export claim is just propaganda for a university system addicted to foreign cash.

Leith van Onselen is spot-on: Indian students, by sending billions in remittances to India, undermine the overhyped economic benefits of international education. Universities and the ABS prop up a false narrative, counting every dollar spent as an export while ignoring the massive outflow. For Aussies fed up with universities' self-serving spin, it's time to demand transparency and an education system that puts Australia first, not one that funnels our wealth overseas.

https://www.macrobusiness.com.au/2025/07/indian-students-drain-money-from-australia/

Indian students drain money from Australia

International education is purported to be Australia's fourth-largest export, valued by the Australian Bureau of Statistics (ABS) at $51 billion in 2023-24.

The ABS estimates this stunning export figure by using "an average spend estimate from Tourism Research Australia … supplemented by the addition of total expenditure on course fees".

The ABS incorrectly classifies all spending by international students as exports, despite the fact that many students pay for their goods and services with Australian dollars earned while working in Australia.

The World Bank has released migrant remittance data for 2024, which challenges the notion that international education is Australia's fourth largest export.

According to this data, Australia's net remittance outflows were $US10.1 billion in 2024, or more than $A15 billion.

International students would account for a considerable portion of the remittances leaving Australia.

Indeed, the volume of net remittance outflows has closely tracked the volume of international students studying in Australia.

A new report by Money Transfer Australia, which draws on figures from the World Bank, ABS, KNOMAD, and DFAT, estimates that US$4.8 billion worth of remittances were sent to India from Australia in 2024.

Source: Money Transfer Australia

"The surge comes as Australia's migrant population hits historic highs, fuelling unprecedented levels of money flowing back to families and communities across India", noted Indian Link.

"With over 780,000 people of Indian origin living in Australia, remittance flows have become both a personal and economic bridge between the two nations. These funds help families cover essentials such as education, healthcare, and housing, while also boosting local economies across India".

"Money Transfer Australia's report highlights that migrants from India are among the most active senders of money, despite the diversity of Australia's overseas-born population".

"Our analysis shows that private remittances are not only an act of love and duty but also a significant driver of economic activity in recipient countries", Russell Gous, Editor-in-Chief at Money Transfer Australia, noted.

Indian Link projects that remittance outflows to India will continue to rise as the migrant population expands in Australia, driven by international education.

"With Australia's net overseas migration expected to exceed 1.3 million people between the 2023 and 2025 financial years, remittance flows to India are projected to grow even further in 2025. This trend reflects both the rising Indian diaspora and Australia's economic and educational appeal for Indian professionals, students, and families".

"As India and Australia strengthen their strategic, economic, and cultural ties through agreements like the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), rising remittances stand as a testament to the enduring bonds between the people of both nations", Indian Link wrote.

Remittance outflows are an import since money leaves Australia.

The massive outflow of remittances should, therefore, be counted against the ABS' fantastical $51 billion education export figure, which wrongly counts all spending by international students as an export regardless of how it is funded.

The real export figure is clearly far lower."