As of June 2026, Australia’s international education sector is navigating a period of significant instability. International students are facing a “double blow” of rising domestic inflation and sharp currency depreciation in key Asian markets, while simultaneously grappling with a more restrictive visa environment.
The Financial Squeeze
Data from the International Students Representative Council of Australia (ISRC) and financial analysts indicate that students from Vietnam, India, Nepal, and Indonesia are seeing their purchasing power plummet. According to NAB’s head of FX Strategy, Ray Attrill, the Vietnamese dong has declined 6% against the Australian dollar since January, while the Indian and Nepalese rupees have fallen by 12.5%. The Indonesian rupiah has seen a 15% drop, significantly increasing the monthly cost of living and tuition for students.
Professor Ly Tran of Deakin University warns that this financial stress forces students into overcrowded housing or excessive work hours, which directly impacts academic performance and mental health. Universities Australia CEO Luke Sheehy stated that institutions are attempting to provide hardship support, but acknowledged that the global economic environment is creating unprecedented challenges.
Policy and Structural Shifts
Beyond currency issues, the sector is struggling with systemic changes. IDP Education, the world’s largest student placement agent, has recently moved to outsource onshore visa services to Bravo Migration, reflecting the increasing complexity of Australia’s visa landscape. Experts note that higher visa refusal rates and tighter migration policies are currently acting as stronger deterrents to student demand than currency fluctuations alone.
Furthermore, the sector faces reputational risks. Recent investigations by the University of Sydney into alleged exam leaks on social media platforms highlight ongoing concerns regarding academic integrity and the student experience. While Australia remains a destination for global research collaboration—evidenced by the recent association with the EU’s Horizon Europe program—the reliance on international student revenue remains a point of vulnerability for the national economy.