Australia’s international student program has long been a gateway for developing highly skilled, high-earning workers who contribute meaningfully to the economy. However, critics often paint student and graduate visa holders as low cost labour, claiming they undercut local job opportunities. This oversimplification overlooks the data, and the long-term benefits these individuals bring to Australia’s workforce and innovation landscape.

In reality, former international students transitioning to the Temporary Graduate visa (subclass 485) contribute significantly to Australia’s high-value sectors, particularly in areas where skill shortages persist.

According to data from the Australian Bureau of Statistics (ABS) and the Grattan Institute, international graduates working in Australia on 485 visas are frequently employed in sectors like ICT, engineering, health, and finance, industries that report strong wage growth and persistent talent shortages.

A 2023 Australian International Education Data Snapshot noted that median salaries for international graduates working in ICT roles (a common destination for 485 visa holders) exceeded $90,000 AUD, well above the national graduate median of $68,000 AUD (QILT Graduate Outcomes Survey). In some STEM-heavy sectors, the salary difference between 485 visa holders and local graduates is as high as 20–30%.

Additionally, data from the Department of Home Affairs shows that a large proportion of 485 visa holders go on to secure employer sponsorship, skilled independent visas, or permanent residency—pathways that depend on both earning potential and contribution to the economy.

The notion that student visa holders remain low-paid or in precarious employment is also challenged by entrepreneurship trends. According to research from the Productivity Commission and the Startup Muster survey, former international students who stay in Australia are more likely to found startups or work in innovation-driven businesses compared to domestic graduates.

The growth of post-study work rights like OPT in the U.S., the Post-Graduation Work Permit (PGWP) in Canada, the Graduate Visa in the UK and the 485 visa in Australia is not a result of student visa abuse, but rather a symptom of an inflexible skilled migration framework. In Australia, pathways like Skilled Migration or Employer-Sponsored visas have caps, rigid occupational lists, and slow processing times, which often leave talented graduates in limbo.

These post-study work rights are a necessary “bridge visa”giving employers time to assess graduate talent and invest in sponsorship or permanent pathways. Ending or severely limiting post-study work would not “protect” Australian workers; instead, it would drain the system of high-potential workers already educated in Australia.

Instead of restricting student-to-skilled pathways, Australia should focus on better metrics for long-term migration success, such as earnings, employment in high-demand sectors, and regional contributions. Simplifying transitions from 485 to permanent visas, supporting graduate entrepreneurs, and reducing red tape for employer sponsorship could unleash the full potential of the international graduate talent pool.

Australia is in a different position compared to the US, UK, or Canada; its smaller population, lower immigration levels, and economy driven by resources, R&D, and technology demand a tailored approach to talent. International graduates represent the future workforce Australia needs. Limiting their ability to stay and contribute would be a strategic mistake amid an ageing population, skill shortages, and growing global competition for talent.

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