Key Points
- A new Grattan report has said many international students are attracted to study in Australia by the prospect of obtaining permanent residency.
- The federal government’s recent decision to offer international graduates studying degrees in nominated areas of shortage an additional two years on their Temporary Graduate visa should be reversed, says the report.
The Grattan Institute's report, 'Graduates in limbo: International student visa pathways after graduation', suggests shorter post-study work visas, higher English standards for Temporary Graduate visa holders, lowering the age limit to 35, and visa extension only for those earning over $70,000 annually.
The report, by the independent think tank, also recommends offering more help to international graduates who do stay to pursue their careers in Australia.
These reforms would cut the number of graduates we leave in limbo, while ensuring Australia continues to attract the best international students and help the best graduates to stay.Grattan Institute
Many international graduates stay in Australia on temporary visas once they graduate but struggle to pursue their chosen careers, it said.
One in three graduates return to further study, mostly in cheaper vocational courses, to prolong their stays in Australia. Credit: gawrav/Getty Images
"Less than one third of Temporary Graduate visa-holders now transition to permanent residency when their visa expires, down from two thirds in 2014," it added.
One in three graduates return to further study, mostly in cheaper vocational courses, to prolong their stays in Australia.
The report says that its modelling shows that the government’s recent decision to allow many graduates to stay and work for even longer is a big driver of why the number of Temporary Graduate visa holders in Australia will almost double to about 370,000 by 2030.
Unless the number of permanent visas on offer each year rises, which seems unlikely, many more graduates will be left in limbo in the future.Grattan Institute's report
Many international students are attracted to study in Australia by the prospect of obtaining permanent residency, according to a Grattan Institute report. Credit: Asia Images/Getty Images/AsiaPix RF
It adds to population pressures and housing prices. And it’s unfair to those graduates who invest years in Australia with little prospect of securing permanent residency.Grattan Institute's report
In reaction to the report, Abul Rizvi, the former Deputy Secretary of the Department of Immigration, says he believes the government's choice to issue extended Temporary Graduate visas seems like an unsustainable solution to address labour shortages.
"It is not a sustainable, long-term policy as the number of Temporary Graduate visas will continue to grow rapidly in direct contravention of the government's stated desire to minimise reliance on long-term, temporary visas," he said.
Peter Mares, another immigration expert, said the report's findings were accurate.
"Because the number of international students admitted exceeds the migration intake quota, it will be more challenging for this group to obtain permanent residency," Mr Mares clarified.
"Many students are not able to find employment in their respective fields because employers are hesitant to hire them due to their temporary visa status," he added.
Abhishek Bhujangaiah, a 26-year-old pursuing a master's degree in mechanical engineering at the University of Western Australia, says he also believes the Grattan report has hit the right nerve.
Abhishek Bhujangaiah is an international student currently studying towards a Masters of Mechanical Engineering at the University of Western Australia. Credit: Abhishek Bhujangaiah
"The inability to find suitable jobs in my desired occupation can hinder my chances of obtaining permanent residency. So I may be pushed into low-skilled positions," Mr Bhujangaiah said.
"But I am prepared to switch to any job if I can't find employment in my specific field, which I believe is quite challenging to come by," he said.
The Grattan report has urged the government to initiate a campaign to shift employer perceptions about new graduates and called for increased support from universities to help international students establish careers in Australia.
Mr Bhujangaiah welcomed the recommendations and said they would help and benefit the cohort.
