There are new restrictions for student visas in Australia. Here's what you need to know

International students now need more savings to study in Australia and the government has issued a warning over fraudulent recruitment.

The increase in savings requirements is part of an effort to reduce record migration. Source: Getty / Kilito Chan

International students hoping to study at an Australian university now need to have more savings to be approved for a visa.

The new restrictions come after a record low in student visa approval rates as the government seeks to curb migration.

The government has also warned against fraudulent recruitment practices.

Here's what you need to know.

What are the new minimum savings needed for international students?

From Friday, international students must show proof of savings of at least $29,710 to be approved for their visa.

It is the second increase to the savings minimum in the last year.

The number of international students in Australia has surpassed pre-pandemic levels. Source: SBS News

The savings requirement increased 17 per cent — from $21,041 to $24,505 — in October.

The amount had previously not been indexed since 2019, with the hike acting as a catch-up.

Why do foreign students need more savings?

The increase in savings requirements is part of an effort to rein in record migration.

International education is one of Australia's largest export industries and was worth $36.4 billion last financial year.

But the government has been under pressure over migration as Australia struggles with an ongoing housing crisis and soaring rental prices.

The government has been under pressure over rising migration. Source: SBS News

According to the latest statistics on population change, published by the Australian Bureau of Statistics, net overseas migration rose 60 per cent to 548,800 in the year to 30 September 2023.

The government expects its policies could halve Australia's migrant intake over the next two years.

"We are significantly reducing migration levels — we are in the middle of the biggest drop in migration numbers in Australia's history, outside of war or pandemic," Home Affairs Minister Clare O'Neil said.

According to the Department of Home Affairs, the change aims to ensure students coming to Australia to study can afford to support themselves and will not face an increased risk of exploitation.

What are the other requirements for international students?

In December 2023, the government released its migration strategy, introducing tougher restrictions on international students.

Under the strategy, English language requirements were increased, with those applying for a student visa now required to score a 6.0 on the International English Language Tests System (up from 5.5).

The minimum test score required for a Temporary Graduate visa has increased from 6.0 to 6.5.

The government has also been taking steps to end settings that allowed students to prolong their stay.

Why are universities being warned over fraudulent recruitment?

Several education providers have also been warned over fraudulent student recruitment practices.

In a statement, O'Neil said warning letters had been sent to 34 education providers for "non-genuine or exploitative recruitment practices".

According to the statement, providers will have six months to "significantly improve their behaviour" or risk being issued with suspension certificates.

Home Affairs Minister Clare O’Neil has issued warnings to education providers over "non-genuine or exploitative recruitment practices." Source: AAP / Lukas Coch

This would ban these providers from recruiting more international students, with breaches of these actions punishable by up to two years imprisonment

"Dodgy providers have no place in our international education sector," O'Neil said.

"These actions will help weed out the bottom feeders in the sector that seek to exploit people and trash the reputation of the sector."