Last year students made up two thirds of immigrants. This will only add to the rental crises and push up demand leading to higher inflation.
While the RBA is punishing Australians with high interest rates, Treasury is rewarding Universities with rivers of gold with fees from foreign students.
This is just sooo typical. The elites profit from the battler’s pain.
“In 2022, Australia received 362,462 offshore student visa applications. This far exceeded the previous records set in 2018 of 278,691 and in 2019 of 276,183. In 2022, the number of student visa holders in Australia grew from 315,949 at end December 2021 to 456,970 at end December 2022; an increase of 141,021.” – Macrobusiness.com.au.
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Economics Legislation Committee
15/02/2023
Estimates
TREASURY PORTFOLIO
Department of the Treasury
Senator RENNICK: In 2021-22, migration was 171,000, of which 109,000 were students. There is a record 217,000 student visa applications for this year. Given that students predominantly add to demand and not supply, why is Treasury pursuing a big Australia policy at the same time that the RBA is trying to cap demand? Isn’t the Treasury policy of big Australia going against that, especially with regard to rents, where rents are going through the roof because many people can’t find a place to stay?
Dr Kennedy : There is a bit to map through. We don’t have a big Australia policy. The government sets the permanent migration caps and sets the policies. I would say that Treasury has always spoken about the importance of thinking through migration from how it contributes to GDP per capita and how it contributes to the income of all of us. It’s not sensible—
Senator RENNICK: But students don’t produce.
Dr Kennedy : I’ll come to students very quickly. It’s not sensible to think about the migration program by saying that the economy is larger because there are more people here. That’s necessarily not a thing.
Senator RENNICK: I agree.
Dr Kennedy : We have to think through what is the appropriate program, how it works and how it contributes to the dynamism in the economy et cetera. I would say—it’s possibly where we don’t agree—that Australia’s migration program over a number of years has contributed significantly to the dynamism of the country. On students particularly, there is an artificial dynamic at the moment. We are seeing some students return who weren’t here to finish degrees. We are seeing the new flow. From what we’ve seen in the past, the patterns are roughly 160,000 students arriving a year and roughly 80,000 leaving, or something along those lines. There is a net position of 80,000. What we’re getting in this next year or two are much large numbers because we haven’t got the outflow. We’re just re-establishing the inflow. As to whether it puts pressure on rental markets and accommodation, more people clearly put pressure on rental markets and accommodation.
Senator RE NNICK: Thank you.
