By Huiyuan Liu
Over the past four years, Australia has introduced several changes to its immigration policies to address the labour shortage during the COVID-19 pandemic and manage the post-pandemic immigration surge. (A summary of the changes in policy for Australian student visas is provided below as an annex: Table 1.) These changes have significantly affected the student diaspora in Australia. In 2022-23, nearly 500,000 student visas were granted to primary applicants, a 40% increase from the 2018-19 level and nearly double the number from a decade ago. However, due to gradual policy tightening, the number of student visas granted declined to 332,000 in 2023-24 and is expected to decrease further as new restrictions are implemented.
Students from the Pacific and Timor-Leste have experienced similar impacts. Historically, scholarships from the Australian Department of Foreign Affairs and Trade (DFAT) and also the Department of Defence have been crucial in attracting Pacific students to Australia, fostering the growth of the Pacific student diaspora prior to COVID-19.
During the pandemic, the relaxation of working hour limits provided strong economic incentives for Pacific students to support themselves while studying in the vocational education and training (VET) sector. This incentive was removed in July 2023 and although its effect persisted for a couple of months, the visa numbers are now decreasing as new financial and other barriers are introduced.
However, despite the general trend, a closer look at individual country data reveals that Fiji has emerged as the major beneficiary among Pacific countries, capitalising on opportunities presented during COVID-19. The number of visas granted to Fijian primary applicants increased more than five-fold from 2018-19 to 2022-23, and remained relatively high in 2023-24. Most of this increase occurred in the VET sector, but the number of students accepted in higher education also more than doubled, which is a very positive development.
In comparison, Papua New Guinea, other Pacific countries and Timor-Leste experienced much smaller increases during the immigration boom. The share of student visas granted to PNG, relative to the total number of student visas granted to all countries, went down from 0.36% — the average over the ten years before the pandemic — to 0.23% in 2022-23. Similarly, the share for other Pacific counties and Timor-Leste fell from 0.25% to 0.18%.
The increased volume was also short-lived. In 2023-24, the number of student visas granted to PNG was below the 2018-19 level, and much lower than the 2014-15 level. Other Pacific countries and Timor-Leste rely heavily on Australian Government support. When excluding visas supported by DFAT and Defence, the number of student visas granted in 2023-24 is lower than in 2018-19.
For most people from the Pacific and Timor-Leste, studying in Australia is economically challenging. This is why, apart from Fiji, other Pacific countries have not only struggled to benefit from Australia’s favourable student policies during COVID-19 but are now also facing increased pressure from tightened immigration policies.
While Australian government scholarships have been a stable and important source of education opportunities for students from Pacific countries, and the permanent residency status granted by the new Pacific Engagement Visa will allow recipients to access Australian student loans and benefit from domestic tuition rates, these opportunities are limited and conditional. As a result, an increasing number of Pacific people are opting for other study destinations largely influenced by economic considerations.
Educational exchange is crucial for enhancing connections between individuals and societies and acts as a powerful tool for extending soft power. Australia needs to be mindful of how changes in its student policies affect neighbouring countries and should take action to reduce further harm to those already underrepresented and in need of greater opportunities.
The exemption for Pacific students in the recent international student policy changes (no fee increase, and non-inclusion in the new international student cap) are certainly positives for the Pacific. Their impact on Pacific student numbers is something to be watched going forward.
Note: This blog was amended (20/9/24) to reflect exemptions for Pacific and Timor-Leste students from some of the recent policy changes (see Table 1).
This article was first published in the Australian National University’s DevpolicyBlog and has been republished here with the kind permission of the editor(s). The Blog is run out of the Development Policy Centre housed in the Crawford School of Public Policy in the ANU College of Asia and the Pacific at The Australian National University.
Disclosure: This research was supported by the Pacific Research Program, with funding from the Department of Foreign Affairs and Trade. The views are those of the author only.
Contributing Author: Huiyuan (Sharon) Liu is a research officer at the Development Policy Centre, working in the area of economic development.
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