International students are a vital part of Australian economy. In fiscal year 2022–23, nearly 500,000 international students got Australian student visa, marking a 41% rise over the previous record year.
Beyond their presence on campuses, they contribute directly to the country’s growth through education fees, daily expenses, and active participation in the workforce.
Their role became even more noticeable in the years following the COVID-19 pandemic, when Australia’s economy needed support across key sectors.
Education is now Australia’s fourth largest export category. In 2023–24, international education added close to $50 billion to the economy, more than triple the value of student earnings during the same period.
This article looks at the economic impact of international students in Australia, highlighting the deep connection between immigration and the economy, where international students not only spend and work but also spark housing demand and often stay on as future migrants, shaping Australia’s growth.
Contribution of International Students to the Australian Economy
International students play a major role in both spending and working in Australia. They increase demand by paying for education and daily living costs. At the same time, many of them join the workforce and support key industries.
In 2023/24, education exports reached around $50 billion. That makes education Australia’s fourth-largest export. This spending supports schools, businesses, and thousands of jobs. For universities, international student fees often make up 15% to 40% of total revenue.
While studying, many students explore employment opportunities in Australia through part-time jobs. Most work in:
- Accommodation and food services
- Retail
- Transport and delivery
- Health care
Holders of an international student visa Australia can now work up to 48 hours per fortnight.
As a result, students now work about three-quarters of the hours of the average working-age person, allowing them to contribute more to the local workforce and economy. Students from India and Nepal usually work more, while those from China work less.
This mix of study and work helps businesses, especially in cities. After the pandemic, these students filled labour shortages in sectors hit hardest. Many stay longer by moving to graduate visas or permanent residency, and some later apply for an Australian visa for skilled workers to continue contributing to the economy.
Around 30% applied for graduate visas in the five years leading up to 2022.
Over time, these students may become long-term workers and taxpayers. They bring valuable skills and support innovation. Their presence strengthens the country’s supply of labour and supports steady economic growth.
Economic Benefits of International Students in Australia
The spending by international students fuels many parts of the Australian economy. In 2022 alone, they added more than $29 billion. Of that, $25.5 billion came from students who lived and studied in Australia. The rest came from students learning online.
This money supports more than just schools and universities. it also generates revenue through international student taxes, benefiting local and national economies:
- Local shops and restaurants
- Public transport and travel services
- Rental housing and student accommodation
- Health care and utilities
The largest share of their spending goes to tuition. But after that, much of their money goes into the local economy. In fact, international students spend about twice as much per week as residents. That includes setting up their homes, eating out, and using city services.
This makes education Australia’s biggest services export. It’s also the largest export we don’t dig out of the ground. That makes it special, because it depends on people, not minerals.
The strong rebound of the sector after the pandemic helped Australia recover faster. Nearly 80,000 students arrived in one month alone, double the number from the year before. Their arrival boosts demand at a time when many businesses need more customers.
These trends show that international students are not a short-term gain. They are a steady, growing source of income. Their impact touches education, jobs, housing, and consumer spending across the country.
Benefits of International Education to Australia
International education brings more than just money. It connects Australia to the world. Students from over 144 countries come here, each bringing unique ideas, cultures, and skills. This exchange builds strong global ties and helps Australia stay connected and respected.
The students’ presence supports research, innovation, and training. Universities use tuition fees to fund:
- Advanced research projects
- New learning facilities
- Better teaching resources
These improvements help both local and international students. They also strengthen Australia’s position as a leader in global education.
Besides academic gains, the social and cultural impact is deep. These students take part in community life. They join local events, volunteer groups, and workplace teams. Their contribution helps make Australia more open, diverse, and globally aware.
Labour Supply Contribution of International Students in Australia
In 2024, international students were allowed to work up to 48 hours per fortnight during teaching periods. As key holders of labour market temporary visas, they played a growing role in filling staff shortages across retail, hospitality, and healthcare.
This change helped more students join the workforce and fill essential roles.
Currently, they work roughly 75% of the hours of an average working age Australian. That is a substantial increase compared to the pre-pandemic figure and indicates the increasing international student labour supply. Students from India and Nepal are quite active, as they have some of the highest labour participation rates.
Primarily, these students work in the healthcare, food, and retail sectors. These industries are quite dependent on international students due to their need for flexible, part-time employees.
Most of these students work in healthcare, food service, and retail. These sectors rely heavily on flexible, part-time workers, and international students help meet that demand.
Over time, many continue working after graduation. Some get a temporary work visa, while others move on to permanent residency. By supporting businesses today and boosting the workforce tomorrow, international students are helping keep the economy moving.
Australian GDP and International Student Contributions
In 2023, education exports added 0.8 percentage points to Australia’s GDP growth. That was more than half of the country’s total growth that year. Economists at NAB estimate education exports drove over 50% of GDP expansion in 2023.
This boost came at a critical time. COVID-19 had cut education exports in half. But student numbers rebounded fast when borders reopened in late 2021.
A surge in student visa grants supported this recovery, and by the end of 2023, 560,000 international students were in Australia, almost double from the year before.
Their spending helped:
- Support job growth
- Boost consumer demand
- Strengthen business activity in key sectors
This shows the strong link between Australian GDP and international student contributions. Their fees and everyday spending help drive overall economic performance.
Conclusion
Student visa Australia has proved to be a powerful channel for economic growth in Australia. They bring ambitious students’ learners who also support Australia’s workforce and local industries.
International students do more than study. They spend money on tuition and living expenses, pay international student taxes, and purchase services like Overseas Students Health Cover, all of which create jobs and keep the Australian economy strong.
As Australia grows, international students will remain important to the Australian economy. They help in classrooms, in workplaces, and in the community.
If you’re planning to study in Australia and need expert guidance, KNN Migration Advisors can help you navigate every step with confidence and clarity.
