Pauline Hanson has criticized the Albanese government for the decision to increase international student numbers, alleging that many of these students are engaging in cash-in-hand work, evading taxes, and depriving ordinary Australians of job opportunities.

Despite commitments to reduce migration numbers and ongoing warnings about system misuse, Labor plans to increase the international student cap to 295,000 in 2026, which is 25,000 more than initially indicated for 2025.

Critics, such as Hanson and former Treasury economist Leith Van Onselen, argue that the student visa program has shifted focus from education to providing businesses with low-cost labor paid “under the counter,” serving as a pathway to permanent migration.

They further caution that the influx of arrivals is causing competition with Australians for rental properties, leading to a surge in prices in major urban areas.

The Albanese government brushed off such criticism and said it would work with universities to boost the availability of student accommodation.

Education Minister Jason Clare stated, “International education is crucial for Australia as an export industry, but we must ensure its growth is managed sustainably.”

But Hanson says the student visa system is a racket.

‘Many of these people are taking jobs that should be held by Australians – often for under-the-table cash, which is then sent home.

The Institute of Public Affairs reported that in 2023, foreign students in Australia earned $15.4 billion through part-time employment, with over $10.5 billion of that income being remitted overseas.

‘This puts a huge dent in the claim this “industry” is worth almost $50 billion a year to the national economy – it isn’t.’

Hanson said any foreign student found to be working but not paying tax should have their visa cancelled, ‘and should be thrown on the next flight back to their home’.

She said Australian universities are classified as not-for-profit institutions.

‘This status enables them to avoid paying tax on the upfront fees foreign students pay them, and to which they have become addicted like meth junkies. 

‘Australian taxpayers are being ripped off by the ‘international student’ racket.’

In the year to May, 794,113 international students were enrolled in education across the country, with education now Australia’s biggest services export and the fourth-biggest export after iron ore, coal, and natural gas.

While China still leads in international student numbers at 167,147, India and Nepal have seen significant increases, moving into second and third spots with 123,456 and 57,048 students, respectively.

Leith Van Onselen, a former Treasury economist, highlighted a survey by Allianz Partners Australia that found 68.4 per cent of international students plan to stay in Australia long-term.

‘Students from South Asia and Africa choose a study destination based on their capacity to gain job rights, a low-cost course, and permanent residency,’ Mr Van Onselen said.

‘With the exception of students from China and Europe, all source nations placed a high value on the potential to work while studying and post-study employment opportunities.

‘It should be no surprise, then, that Australia has witnessed the greatest increase in student numbers from nations that rely on paid employment.

‘Indian students and migration agents celebrated Labor’s federal election victory because they know that it means easier entry into Australia.

‘Australia’s policymakers and media should drop the charade and acknowledge that international education is an immigration racket.’

A new Reserve Bank report found that the soaring number of international students was putting pressure on the housing market during a time of high construction costs.

‘The number of international students onshore is still near record highs, and student visa arrivals have exceeded departures in recent months, suggesting the number of students onshore is growing,’ it said.

‘In the face of a relatively fixed supply of housing in the short term, we would expect an increase in international students to put upward pressure on rental demand and rents (all else equal).

‘Capacity constraints, high costs in the construction sector, and low levels of building approvals relative to the population may mean the housing supply response could be slower to materialise compared with in the past.’