Strategic Review of the Student Visa Program 2011

30 June 2011

AustralianGovernment

StrategicReview
ofthe

StudentVisaProgram 2011 Report

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TableofContents
Introduction................................................................................................................... v ExecutiveSummary..................................................................................................... vii Recommendations ..................................................................................................... xiii AbbreviationsandGlossaryofTerms........................................................................ xxi Chapter1 HowdidIreachmyconclusions?..........................................................1 Chapter2 PrincipleswhichunderpinthisReport .................................................5 Chapter3 TheContext ...........................................................................................9 Chapter4 TheFoundationStone .........................................................................19 Chapter5 TheUniversities...................................................................................27 Chapter6 HigherDegreesbyResearch ...............................................................47 Chapter7 NonuniversityHigherEducationand VocationalEducationandTraining(VET) ...........................................55 Chapter8 EnglishLanguage .................................................................................63 Chapter9 Schools.................................................................................................69 Chapter10 AusAIDandDefence............................................................................75 Chapter11 NonAward...........................................................................................79 Chapter12 IntegrityMeasures ..............................................................................83 Chapter13 AssessmentLevels.............................................................................101 Chapter14 Agents ................................................................................................107 Chapter15 TransnationalEducation ...................................................................111 Chapter16 ANewConsultativeMechanism.......................................................117 Chapter17 OtherMatters....................................................................................121 Appendix1TermsofReference.............................................................................127 Appendix2StakeholdersConsulted......................................................................129 Appendix3MediaReleaseinvitingsubmissions ..................................................147 Appendix4SubmissionstotheReview.................................................................149 Appendix5StudentVisaApplicationProcess.......................................................155 Appendix6PRISMSNCN/SCVProcess ..................................................................157 Appendix7SummaryoftheAssessmentLevelFramework ................................159

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Introduction
On14January2011,IstartedworkontheStrategicReviewoftheStudentVisa Program.ThisReviewwascommissionedbytwoMinisters:ChrisBowenthe MinisterforImmigrationandCitizenshipandChrisEvanstheMinisterforTertiary Education,Skills,JobsandWorkplaceRelations.TheTermsofReferencearesetout inAppendix1. Mytaskwastomakerecommendationsforasustainableprogramwhichwillbalance Australia'seconomicinterests,educationalinterestsandmigrationinterests.This Reportismyresponse. AttheoutsetIwanttomakeclearthatthisReportisnotathesisoninternational education.WhileIhopeithasintellectualrigour,thisReportisnotanacademic treatise.Similarly,Ihavenotattemptedtoproduceadefinitivehistoryof internationaleducationinAustralia.Thatwouldbeaworthwhiletaskbutitisfor someoneelsetodoinanotherplaceatanothertime. NorhaveIsoughttoredesignthestudentvisasystemfrom"thegroundup".There isahistory,asetofproceduresandalegalframeworkwhichalreadyexists.Itwould befoolishtopretendthatIamstartingwithablankpieceofpaperonwhichto formulatemyideaofsomeutopianscheme. InsteadwhatIhavesoughttodoistoprovidepracticalrecommendationswhich buildupontheexistingframeworkwhileatthesametimemakingwhatIconsiderto beessentialreforms.Ihavetriedtomakerecommendationswhichshouldbe relativelyeasytoimplement,butwhichcanstillmakeasubstantialdifference. ConsequentlythisReportisfocussedonthefuturenotonthepast.Itdoesnot containany"findings"butratherasetofproposedactions. WhilethisReporthasanumberofsuggestedactionsitisnotintendedtobesimplya collectionofrecommendations.Itisanintegratedpackage.Theinitiativesthatwill enhancethepositionofsomeprovidersshouldnotexistinisolation.Those initiatives,andtheadditionalintegritymeasuresproposedfortheinternational studentvisaprogram,areinterdependent.Inmyviewitwouldbequitedangerous tohaveonewithouttheother. TechnicallythisisaReporttothetwoMinisterswhocommissionedtheReview. However,theymadeitcleartomefromtheoutsetthattheReportwouldbepublicly released.ThereforethestyleandtoneofthisReportisaimedatthegeneralreader. MichaelKnight 30June2011

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ExecutiveSummary
Theinternationaleducationsectorissubstantialandimportant.Itgrewrapidlyover thelastdecade.Atitspeakin2009therewere491,565internationalstudents enrolledincoursesinAustralia. Sincethattimeenrolmentshavefallen.Andthenumbersofnewstudentsenrolling aredecliningfasterthantheoverallenrolmentnumbers.Thisiscausingserious problemsfortheviabilityofthesector.Arangeoffactorshavecontributedtothis includingincreasedglobalcompetition,changestoAustraliasmigrationsettingsand arisingAussiedollar.Manyinthesectorrefertothese,andotherfactors,as creating"theperfectstorm". ChangestoAustraliasstudentvisaprogramcannotsolvealloftheproblemsfacing theinternationaleducationsector.Buttherearecertainthingsthatcanbedoneto helpmakeAustralianproviders,particularlyAustralianuniversities,more competitive. HelpingAustraliasuniversitiescompeteinternationally ThisReportcontainsaseriesofmeasurestargetedtoimprovethecompetitiveness ofAustraliasuniversitiesintheglobalmarketforinternationalstudents.Thereare soundpublicpolicyreasonsfortreatingtheuniversitiesdifferently: TheuniversitiesarethespearheadofAustralia'sinternationalreputationfor education. QualityishighrightacrosstheentireAustralianuniversitysector. Governmentsandregulatorstraditionallytreatuniversitiesdifferentlyto othereducationproviders. Highqualityispreservedbykeepingthenumberofinstitutionsrecognisedas universitiesrelativelysmall. Becausethereareonly39ofthem,theuniversitysectorismucheasierto monitorandregulate. Theuniversitysectorisverystable. AustraliantaxpayershaveahugefinancialstakeinAustralianuniversities. Internationalstudentsgenerallystaylongerinauniversitycoursethanwith othereducationalproviders. Overalluniversitystudentshaveproventobearelativelylowriskfroma migrationintegrityperspective. TheproposedbenefitsforAustralianuniversitiesfallintotwocategories: streamlinedprocessingofvisasandpoststudyworkrights.

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Intermsofstreamlinedprocessing,theproposalistotreatstudentsformost universitycoursesasthoughtheywereAssessmentLevel1,nomatterwhatcountry theycomefrom.AssessmentLevel1givesthe"lightesttouch"tostudentvisa applicants.Allapplicantswillstillbesubjecttobasicrequirementssuchashaving healthinsuranceandnotbeingasecurityorhealthrisk.AndtheDepartmentof ImmigrationandCitizenship(DIAC)willreservetherighttolookseparatelyat applicationsfromanygroupthatposesaparticularconcern. However,beyondthosebasicrequirements,DIACwilleffectivelytakethat universityswordthatthestudentissuitable.Thereforeuniversitiescanbe confidentthattheirstudentswillhavetheirapplicationsprocessedquickly. Thesesubstantialbenefitscomewithsignificantobligations.Theuniversitiesmust beaccountableforthevisaoutcomesoftheirstudents.Ifthereareconsistently poorvisaoutcomesfromthestudentsofanindividualuniversitythenthatuniversity shouldberemovedfromthestreamlinedprocessingarrangements.Theycanstill haveinternationalstudents,buttheywillbeprocessedundertheexisting arrangements. Thisstreamlinedprocessingarrangementshouldalsoapplytocoursesatother highereducation,vocationaleducationandtraining(VET)andEnglishlanguage training(ELICOS)providerswhenthecourseisexplicitlypackagedwithauniversity course.Butforthesepackagestheuniversitycarriesthesameobligationsand responsibilityasitwillforacourseattheuniversityitself. ThisReportalsoproposesthatinternationalstudentsgraduatingfrommost universitycourses(mainlyBachelorandMastersbyCourseworkdegrees)andwho areincompliancewiththeirvisaconditionsreceivetwoyearspoststudyworkrights. BeingabletoobtainpracticalexperienceinAustraliamakesthequalificationmore valuableinthestudentshomecountryorinathirdcountry. TheabsenceofaclearlydefinedpoststudyworkrightsentitlementputsAustralian universitiesataveryseriousdisadvantagecomparedtosomeofourmajor competitorcountries.Inthepasttheabsenceofsuchanentitlementhasnotproven tobeadramatichindrancetoAustralianuniversitiesrecruitinginternational students.Buttheworldhaschanged.Globalcompetitionforqualityinternational studentsisintensifyingandalmostcertainlywillcontinuetofurtherintensify. Allowingamoderateperiodofpoststudyworkrightswillbeessentialtoensuring theongoingviabilityofouruniversitiesinanincreasinglycompetitiveglobalmarket forstudents.

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HigherDegreebyResearchstudents Thereareimportantnonmonetarybenefitstohavinginternationalstudentsat Australianuniversities.Theybringadiversityofcultureandbackgroundwhich enrichescampuslifeforallstudents.Internationalstudentsexposedomestic studentstodifferentculturalexperiencesandfriendshipsarecreatedacrossnational boundaries.ThesepeopletopeoplelinkscanhaveanenduringvalueforAustralia overmanydecades.Butintheendthebiggestattractionisthefinancialbenefits mostuniversitystudentsbring;theirfeesandthebroadereconomicstimulusthat comesfromthemoneytheyspendonfood,accommodation,leisure,traveletc. ThesituationwithHigherDegreebyResearch(HDR)studentsisverydifferent.For AustralianuniversitiestherevenuefromPhDandMastersbyResearchstudentsis almostincidental.ThemaindriverforwantingHDRstudentsisthetalent,theskills andtheresearchopportunitiestheyembody.Thereisstrongglobalcompetitionto attractthebrighteststudentsandresearchers,particularlyinthesciences, mathematicsandtechnology.TheeconomicbenefittheybringtoAustraliaisnot fromthemoneytheyspendhere;itisfromthejobscreatedforothersbyapplying theresearchtheycreate. ThisReportmakesseveralrecommendationstohelpmakeAustraliaamore attractivedestinationforinternationalHDRstudents. Othersectors IntermsofthenonuniversityhighereducationprovidersandtheVETsector,this Reportproposeslittlechange.Theyshouldcontinuetohaveaccesstothesamevisa arrangementsandpoststudyworkopportunitiesasiscurrentlythecase.Themain initiativeproposedismoreAustraliangovernmentsupporttoassisttheVETsectorto expandoffshore. Australiaisaworldleaderinvocationaleducation.ButstudyinAustraliaisnot withinthefinancialreachoftheoverwhelmingmajorityofpotentialstudentsinAsia. Thereisanemerging,andpotentiallyenormous,marketforVETtrainingwithina widerangeofAsiancountries.IntheshorttermmanyVETprovidershave concentratedonattractingstudentstoAustralia.ButinthemediumtermAustralia hastheopportunitynotmerelytoattractstudentsbutto"ownthespace"inthe fastestemergingeconomiesinthemostpopulouscountries.

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TheELICOSsectorisunusualinthatapproximatelyathirdofitsstudentsdonot enterAustraliaonastudentvisa.Insteadtheycomeonothervisaslikeaworking holidayvisaoratouristvisa.Inthosecasesthereisnorequirementforthestudent toalreadyhaveacertainlevelofEnglishproficiency.However,inthecaseof studentsfromsomecountriestheymustestablishacertainlevelofEnglish proficiencybeforetheycanobtainastudentvisa.Itdoesseempeculiarthata studentneedstospeakEnglishbeforetheycanlearnEnglish.Butitisevenstranger thatthisrequirementonlyappliestothosewhocomeonastudentvisa(who generallystudyforlongerthanthoseonaTouristvisa).TheReportrecommends endingthisanomaly. Theschoolssectorisrelativelysmallandappearstobefunctioningwell.TheReport recommendsonlyminorchanges,mainlyonessoughtbyarangeofState governmenteducationauthorities. Similarlyrelativelysmallchangesarerecommendedfortheseparatevisacategory whichcoversAusAIDandDefencesponsoredstudents.Themainissueofconcern hereisthatonearmoftheAustraliangovernmentAusAIDisgivingscholarshipsto somepeoplewhoaresubsequentlyhavingtroubleobtainingavisafromanother partoftheAustraliangovernment,DIAC.Thisisparticularlyaproblemforpeople withadisabilityandpeoplewithHIV.Thisisamatterwhichneedstobesortedout beforescholarshipsareawarded.AusAID,DIAC,theDepartmentofHealthand Ageing(DOHA)andotherrelevantgovernmentagenciesshoulddevelopan integratedpolicyinrelationtotheawardofscholarshipsandthefacilitationofentry. Improvedintegritymeasures AprincipalfocusofthisReportisonimprovedintegritymeasuresinthestudentvisa program.Itrecommendsamajorchangetothecriteriaforassessingastudentvisa application.Unlikeatouristvisawhereitisabasiccriterionthatanapplicantmust beatemporaryentrantwhointendstoreturnhome,thereisnoexplicitrequirement toassessastudentvisaapplicantthesameway.Thefirstitemofbusinessin assessingastudentvisaapplicationshouldbewhetherornottheapplicantisa genuinetemporaryentrant.Aretheysomeonewhowillcome,studyandgohome afterwards(unlessthereisalegitimatepathwaytostayinglonger)? Anothercriticalissuetolookatwhenassessingastudentvisaapplicantshouldbe whetherornottheyareagenuinestudent.Whileitshouldbeessentialtoestablish thattheapplicantwillbeagenuinetemporaryentrantthatwouldnotbesufficient toobtainastudentvisa.Apersonwhointendstoonlyresidetemporarilybutwho planstoworkillegallyinsteadofattendinganeducationcourseshouldnotqualifyfor astudentvisa.Asuccessfulapplicantforastudentvisashouldbebothagenuine temporaryentrantandagenuinestudent.

Havingmoresensiblecriteriaforassessingapplicantsforstudentvisasshouldgoa longwaytowardsensuringthattheintegrityofAustraliasmigrationcontrolsarenot underminedbypeopleseekingamigrationoutcomeratherthananeducational outcome.Thebestplacetomanageriskisintheinitialvisadecisionoffshore. However,evenwiththebestpossibleassessmentoffshoretherewillinevitablybe someapplicantswhomisbehaveoncetheyreachAustralia.Aminoritywillwork illegally,notturnupatthecoursestheyareenrolledin,participateinsham marriagestobringotherstoworkillegally,overstaytheirvisaperiods,orfailto complywiththeirvisaconditionsinavarietyofotherways.Thereforeitiscrucial thatDIAChasrobustandeffectiveintegrityandcompliancemeasureswithin Australia. Unfortunatelythecurrentmeasuresarealongwayshortofoptimal.Thereisan extremelycomplexwebofregulatoryandlegislativerequirementsincludinga systemofautomaticcancellationsandmandatorycancellations.ThisReport recommendsrepealingtheautomaticcancellationandmandatorycancellation provisionsandgrantingDIACofficersmorediscretioninsuchmatters.It recommendstargetingresourcestoareasofhighrisk.Throughnofaultoftheirown, DIACintegrityandcomplianceofficersspenddisproportionatetimeonprocedural matters.ChangingthosesettingswillallowDIACtoconcentratemoreintegrityand complianceresourcesonmakinglifedifficultforanyonerortingthestudentvisa system. Ongoingconsultation ThroughoutthisReviewIhavetriedtoconsultwidelywithstakeholders.Just becausethisformalIndependentReviewhasconcludeddoesnotmeanthatthereis notaneedforongoingconsultation.InmyviewitisessentialthatDIAChasa mechanismtocommunicateandconsultwithstakeholdersonavarietyofmatters relatedtothestudentvisaprogram.Thisreportrecommendsthecreationofan EducationVisaAdvisoryGroupwithmembersdrawnfromrepresentativesofabroad rangeofeducationproviders,students,stateandfederalgovernmentagencies, businessandtradeunions.

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Recommendations
Chapter4TheFoundationStone Recommendation1 Thatanewelementbeintroducedintotheeligibilitycriteriaforastudentvisa.That newcriterionwillbetoassesswhethertheapplicantisagenuinetemporary entrant.Thisnewcriterionshouldbethefirsttobeconsideredinassessingany applicationforastudentvisa. Recommendation2 Asuccessfulapplicantmustbebothagenuinetemporaryentrantandagenuine student. Chapter5TheUniversities Recommendation3streamlinedvisaprocessingforuniversities 3.1 Thatallstudentsinthecategoriessetoutbelow,irrespectiveoftheircountry oforiginbutsubjecttotheprovisionsin3.5,3.6and3.7shouldbetreatedas thoughtheyareallAL1. 3.2 Thistreatmentshouldapplytothefollowinguniversitystudentapplicants: BachelorDegree; 2plus2(or3plus1)arrangementswithpartneruniversities; MastersDegreebyCoursework. 3.3 Thespecialtreatmentshouldnotapplyto: shortcourses; AssociateDegree; Graduatediploma; Graduatecertificate; DiplomaandAdvancedDiploma; nonawardcourses(exceptasprovidedforinRecommendation18); thenonuniversitycoursesatthesixuniversitieswhicharedualsector (VETanduniversity). 3.4 Thebenefitsshouldalsoapplytocourseswhichareexplicitlypackagedwith aneligibleuniversitycourseatthetimewhentheofferofuniversity enrolmentismade.ThismightincludeEnglishlanguage(ELICOS)and/or foundationorpathwaycoursesincircumstanceswherenoncomplianceby thestudentatanypartofthepackagewouldberegardedasnoncompliance withtheuniversityenrolment.

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Thegovernmentshouldcontinuetorequireappropriatehealthchecks, healthinsurance,character(predominantlycriminalrecord/connections)and securitychecks. 3.6 TheunderlyingDIACpowersinregardtoeveryindividualstudentapplication shouldcontinuetoexist. 3.7 Thegovernmentshouldalsoreservetherighttoexcludecertainhighrisk groupsfromthestreamlinedapproachforuniversityapplicants.For example,thegovernmentmightwanttocarefullyassessallapplicantsfroma persecutedminoritygroupinaparticularcountry.Applicantsfromsucha groupmighthaveahugeincentivetoapplyforprotectionvisasassoonas theyreachAustralia.TheAustralianGovernmentmayormaynotwishto takesuchpeopleonhumanitariangroundsbutthatshouldbeaseparate decisionandshouldnotgetmixedupwiththeprocessofgrantingvisasfor universitystudents. Recommendation4PostStudyWorkRights 4.1 AllgraduatesofanAustralianuniversityBachelordegree,whohavespentat leasttwoacademicyearsstudyingthatdegreeinAustralia,andwhohave compliedwiththeirvisaconditions,shouldreceivetwoyearsworkrights. 4.2 AllgraduatesofanAustralianuniversityMastersbyCourseworkdegree,who havestudiedthatdegreeinAustralia,andwhohavecompliedwiththeirvisa conditions,shouldreceivetwoyearsworkrightsonsuccessfulcompletionof theircourse. 4.3 Thisshouldapplyirrespectiveofthenatureofthecourse(forexample whetheritbeArtsorEngineering)andnotbetiedtoworkinginany particularoccupation. 4.4 Themechanismfortakinguptheseworkrightsshouldbeadministratively verysimplewiththefollowingcomponents: theuniversitymustnotifythatthecoursehasbeensuccessfully completed.(Thiswillbeearlierthantheformalgraduationwhichcould bemanymonthsafterthecoursehasbeencompleted); DIACshouldnotundertakeanydetailed,timeconsuming,assessment oftheapplicant; theschememustbeonewhichcanbemarketedbytheuniversitiesto prospectivestudentsasalmostguaranteeingpoststudyworkrights.

3.5

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Chapter6HigherDegreesbyResearch Recommendation5 ThatallHigherDegreebyResearch(HDR)studentsvisasubclass574betreatedas thoughtheyareallAL1applicants. Recommendation6 ThatwhereanyEnglishlanguageorotherpreparatorycourseisrequiredbythe HigherDegreebyResearchproviderthenthewholepackagestillbetreatedasAL1. Recommendation7 ThatallHigherDegreebyResearchstudentsbegivenunlimitedworkrights. Recommendation8 MastersbyResearchgraduatesshouldreceivethreeyearspoststudyworkrights andPhDgraduatesfouryears. Recommendation9 ThatthevisaarrangementsforHigherDegreebyResearchstudentsbesuchthatan extensionforuptosixmonthsaftersubmissionoftheirthesisisavailableifneeded duringtheinteractivemarkingprocess. Chapter8EnglishLanguage Recommendation10 That,providedtheintegritymeasuresrelatingtotherevisedcriteriaforastudent visaareimplemented(assetoutinRecommendation1),thethresholdEnglish languagetestrequirementsforstandaloneELICOSstudentsberemoved. Chapter9Schools Recommendation11 ThattheEnglishlanguagerequirementsforschoolstudentsinAL4bethesameas thoseapplyingforAL1throughtoAL3andtheassociatedwaiverschemeabolished. Recommendation12 ThatthemaximumperiodoftimeaschoolstudentvisaholdercanstudyEnglishbe 50weeksacrossallALs. Recommendation13 Thatthecurrentrestrictionsonstudentguardiansofamaximumofthreemonthsof studybemaintainedbutunlimitedparttimestudyrightsforELICOSstudyonlybe allowed.

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Recommendation14 Thatprepaidhomestayfeesbeincludedinfinancialassessmentsonthesamebasis asprepaidboardingfees. Chapter10AusAIDandDefence Recommendation15 ThatasamatterofsomeurgencyAusAID,DIAC,DOHAandotherrelevant Australiangovernmentagenciesdevelopanintegratedpolicyinrelationtothe awardofscholarshipsandhowvisaarrangementsforawardeesaretobemanaged. Inparticulartheyshouldaddressthesituationofpotentialawardeeswhohavea disabilityorHIV. Recommendation16 ThatPhDstudentsenteringunderthesubclass576visahaveaccesstothesame extensionprovisionsrecommendedforHigherDegreebyResearchstudentsin Recommendation9,providedAusAIDispreparedtofundtheirextendedperiod. Recommendation17 ThatDIACandDEEWRmeetwithStateeducationauthoritiestoworkoutwhatcan bedonetoavoidthesituationwhereavisaforachilddependentcannotbegranted untilproofofenrolmentispresentandstateeducationauthoritieswillnotgrant suchproofuntilproofofvisagrantismade.Anyagreedremedyshouldapplyacross allstudentvisasubclasses. Chapter11Nonaward Recommendation18 ThatstudentscomingforsemesteroryearlongnonawardcoursesatanAustralian universityaspartoftheirhomeuniversitiesdegreeand/oraspartofanagreed studentexchangebetweenuniversitiesbegivenaccesstostreamlinedprocessingas outlinedinRecommendation3. Chapter12IntegrityMeasures Recommendation19 ThatDIACundertakespecificresearchtargetedatintegrityandcomplianceissues intostudentvisaoutcomes,includingbothprimaryandsecondaryapplicants,to informpolicydevelopment. Recommendation20 ThatDIACbeappropriatelyfundedtofurtherdevelopresearchcapabilityacrossthe program.

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Recommendation21 ThatDIAC,totheextentpermittedbylegislation,cooperatewithitscounterparts acrossalllevelsofgovernmenttofacilitateinformationsharing,toinformevidence baseddecisionmaking. Recommendation22 Intheeventthattheresearchoverthenext12monthsrevealssystemicabuseof dependant(secondaryapplicant)visas,thatthegovernmentseriouslyconsider mirroringtherecentUKpolicyandrestrictdependantvisastoMastersandabove coursesunlesstheprimaryapplicantissponsoredbyagovernment. Recommendation23 CurrentarrangementswherebySCVsautomaticallybecomeNCNsshouldcease.SCV informationshouldcontinuetobeconveyedtoDIACwhoshoulduseitasaninput intoamoretargetedandstrategicanalysisofnoncompliance. Recommendation24 Automaticcancellationofstudentvisasshouldbeabolishedandreplacedbya systeminwhichinformationconveyedbySCVsisusedasaninputintoamore targetedandstrategicanalysisofnoncompliance. Recommendation25 Themandatorycancellationrequirementforunsatisfactoryattendance, unsatisfactoryprogressandworkinginexcessofthehoursallowedshouldbe removed,givingDIACofficersthediscretiontodeterminecancellationinparticular casesontheirmerits. Recommendation26 DIACshouldconcentrateitscomplianceandintegrityresourcesinrelationtostudent visasonthehighestriskareas. Recommendation27 DIACshouldnotonlyrespondtoinformationgeneratedbyPRISMSbutalsobe proactiveindetectingthesortsofbreaches(forexampleshammarriagesand exceedingpermissibleworkhours)whicharenotreportedinPRISMS. Recommendation28 Thatstudentworkentitlementsbemeasuredas40hoursperfortnightinsteadof20 hoursperweek Recommendation29 Thatthenecessarylegislativechangesbemadetorequirethenameofanyagent involvedtobeenteredintothestudentsdataintoPRISMS. Recommendation30 ThatDEEWRtakestepstoencourageproviderstovoluntarilyenteragentdatainto PRISMSintheinterimbeforetheESOSActischangedtomakethismandatory.

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Recommendation31 ThatDEEWRandDIACestablishasinglestudentidentifiertotrackinternational studentsthroughtheirstudiesinAustralia. Chapter13AssessmentLevels Recommendation32 ThatDIACundertakeareviewoftheALframework,withamindtoeitherabolishing thesystementirelyormodifyingtheframeworktomakeitrelevanttocurrentand futurechallengesfacingthestudentvisaprogram.Thisreviewshouldbemanaged byDIACbutshouldincludereferencetoanexternalpanelorreferencegroup. Chapter14Agents Recommendation33 ThatDIACupgradeitsliaisonatoverseaspostswithmigrationandeducationagents inrelationtothestudentvisaprogram,includingregularmeetingstokeepagents abreastofanychangesinrulesandprocedures. Chapter15TransnationalEducation Recommendation34 ThatAustradebeaskedtoprepareamoredetailedoutlookdocumentthatprovides effectivebusinessplanningintelligencedemonstratingtheopportunities,for offshoreprovisionofvocationaleducation. Recommendation35 ThatthehighestqualityAustralianVETprovidersincludingTAFEs,beencouragedto exploreoffshoremarketopportunities. Recommendation36 ThattheAustralianGovernment,throughprogramssuchastheExportMarket DevelopmentGrantsSchemeandotherformsofassistance,supporthighquality Australianvocationaleducationprovidersinexpandingtheiroffshoretraining services.

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Chapter16ANewConsultativeMechanism Recommendation37 ThatDIACconstituteanEducationVisaAdvisoryGroupasaprimarymeansof regulartwowaycommunicationbetweenstakeholdersintheinternational educationsectorandDIAC. Chapter17OtherMatters Recommendation38 ThatthepolicyregardingPreVisaAssessment(PVA)bediscontinued. Recommendation39 Thatstudentvisasbeallowedtobegrantedinadvanceoffourmonthsbeforethe commencementoftherelevantcourse.Wherenecessaryvisasshouldspecifyadate beforewhichtheholdercannotenterAustralia. Recommendation40 ThatDIACregularlyreviewsthecurrentlivingcostamount,andbasedontheCPIor othermeasureamendtheamount,asrequired. Recommendation41 ThatDIACreviewtheexclusioncriteriaandpolicywhichrelatetostudentvisa noncompliance.

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AbbreviationsandGlossaryofTerms
Oftenpeoplewithinorganisationsusearangeofshorthandexpressions.Itsaves themtimeandmakeslifeeasier.Butwhenyoudontbelongtothatorganisation,it canbedisorienting.TheAustralianPublicServiceisverykeenonacronyms. HereisanattempttoexplainsomeoftheshorthandusedinthisReport. Pleasenote:thedefinitionsbelowarenotintendedtobeexhaustiveorlegally precise.Theyaremeanttobesufficientonlytohelpthetermsmakebasicsense whenyoucomeacrosstheminthisReport. Term/Abbreviation Description $ 2plus2 AllreferencesaretoAustraliandollars. Formalstructuredjointprogramundertakenthroughpartner universities,withtwoyearsattheoverseasuniversityandtwo yearsattheAustralianuniversity. Formalstructuredjointprogramundertakenthroughpartner overseasandAustralianuniversitieswiththreeyearsatone universityandoneyearattheotheruniversity. AustralianEducationInternational:theinternationalarmof DEEWR.AEIleadsstrategicpolicy,regulationandgovernment togovernmentengagementintheinternationaleducation sector. AssessmentLevel:eachcountry,acrosseacheducationsector, isassignedanALwhichisbasedonthecalculatedimmigration riskposedbystudentsfromthatcountrystudyinginthat educationsector. AustralianNationalAuditOffice:theANAOundertakes performanceauditsandfinancialstatementauditsof Commonwealthpublicsectorbodiesandprovides independentreportsandadvicetotheParliament,the governmentandthecommunity. TheAustralianQualificationsFramework:aqualityassured nationalframeworkofqualificationsintheschool,vocational educationandtraining(VET),andhighereducationsectorsin Australia.

3plus1

AEI

AL

ANAO

AQF

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Term/Abbreviation Description ASQA AustralianSkillsQualityAuthority:from1July2011ASQAis thenationalregulatorofAustraliasvocationaleducationand training(VET)sector.ASQAwillregulatecoursesandtraining providerstoensurenationallyapprovedqualitystandardsare met AustralianTechnologyNetworkofUniversitiesCurtin UniversityofTechnology,UniversityofSouthAustralia,RMIT University,UniversityofTechnologySydney,Queensland UniversityofTechnology. AustralianAgencyforInternationalDevelopment:the Australiangovernmentagencyresponsibleformanaging Australia'soverseasaidprogram. Temporaryvisathatprovidesnoncitizenswithlawfulstatus andpreventsthemfrombeingdetainedwhiletheyhave businesswiththedepartmentorthecourtsregardinga departmentalmatter. ConfirmationofEnrolment:issuedbyaprovidertoastudent asanofferofenrolmentinaspecificcourse.Electronically storedinPRISMSandnotifiedtoDIAC.ACoEisaprerequisite forthegrantofastudentvisa. ConsumerPriceIndex:ameasureofchanges,overtime,in retailpricesofaconstantbasketofgoodsandservices representativeofconsumptionexpenditurebyresident householdsinAustralianmetropolitanareas. CommonwealthRegisterofInstitutionsandCoursesfor OverseasStudents:adatabaseofmorethan1,200Australian educationinstitutions.Anyeducationinstitutionthatrecruits, enrolsorteachesoverseasstudentsmustberegisteredon CRICOS. DepartmentofEducation,EmploymentandWorkplace Relations:theleadgovernmentagencyprovidingnational leadershipineducationandworkplacetraining,transitionto workandconditionsandvaluesintheworkplace. DepartmentofImmigrationandCitizenship: managesthevisa processforpeoplewhowanttovisit,work,studyorlivein Australia.

ATN

AusAID

Bridgingvisa

CoE

CPI

CRICOS

DEEWR

DIAC

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Term/Abbreviation Description DIISR DepartmentofInnovation,Industry,ScienceandResearch:the leadgovernmentagencyforencouragingthesustainable growthofAustralianindustriesbydevelopinganational innovationsystem,scienceandresearch,international competitivenessandproductivity. DepartmentofHealthandAgeing:theleadCommonwealth agencyforpromoting,developing,andfundinghealthand agedcareservicesfortheAustralianpublic. EnglishLanguageIntensiveCoursesforOverseasStudents: ELICOSprogramsaredesignedforstudentswhorequire Englishlanguagetrainingbeforecommencingformalstudiesin Australia. EmployerNominationScheme:allowsAustralianemployersto sponsoremployeeswhoareforeignnationalsforapermanent visatoworkinAustralia. EducationServicesforOverseasStudentsAct:protects overseasstudentscomingtoAustraliaonstudentvisasand setsoutclearrolesandresponsibilitiesforeducation institutionswantingtoteachoverseasstudents. ElectronicTravelAuthority:anelectronicallystoredauthority equivalenttoavisathereisnopassportstamporlabel.Can beappliedforbytheapplicantorontheirbehalfbyatravel agentorairline.ETAinformationisaccessiblebyairlines, travelagentsandAustralianborderagencies. Electronicvisa.eVisaisaserviceforlodgingvisaapplications online. Typicallyaoneyearintensivecoursedesignedtoequip internationalstudentswiththeskillsandcapabilitiestoseek entryintohighereducationprogramsinAustralia.These coursesgenerallyprovideanacademicentrypathwaytofirst yearundergraduatestudyoritsequivalent. GlobalFinancialCrisisof200711whichresultedinthe collapseoflargefinancialinstitutions,thebailoutofbanksby nationalgovernments,anddownturnsinstockmarketsaround theworld.

DOHA

ELICOS

ENS

ESOSAct

ETA

eVisa Foundationcourse

GFC

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Term/Abbreviation Description GroupofEight AustralianNationalUniversity,MonashUniversity,University ofAdelaide,UniversityofNewSouthWales,Universityof Melbourne,UniversityofQueensland,UniversityofSydney andUniversityofWesternAustralia. GeneralSkilledMigration:allowstheentryofpeoplewhoare notsponsoredbyanemployerandwhohaveskillsinparticular occupationsrequiredinAustralia.Applicantsmustpassa pointstest,whichassessestheirsuitabilityforemploymentin Australia. HigherDegreebyResearch:aMastersbyResearchora doctoraldegree(PhD) InternationalEnglishLanguageTestingSystem:oneofthetests acceptedbyDIACtoassessapplicantslevelofEnglish languageproficiencyinrelationtotheirassessmentleveland educationsectorofstudy. Informationtechnology:theuseofcomputersandsoftwareto manageinformation. JointCommitteeonInternationalEducation:theprimary forumforAustraliangovernmentstoengagecollaborativelyin pursuingcommonstrategicdirectionsinsupportingthe sustainabilityofinternationaleducation. MigrationOccupationsinDemandList:thelistofoccupations andspecialisationsidentifiedbyDEEWRthatwereinshort supply.ApplicantsforGSMreceivedadditionalpointsunder theGSMpointstestiftheyhadanoccupationontheMODL. TheGSMpointstestnolongerawardsanypointsforMODL occupations. MigrationReviewTribunal:theindependentmeritsreview bodywherepeoplecanappealagainstarangeofdecisionsby DIAC.

GSM

HDR IELTS

IT JCIE

MODL

MRT

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Term/Abbreviation Description NEAS NationalEnglishLanguageTraining(ELT)Accreditation Scheme.NEASsetsstandardsofqualityintheprovisionofELT programsandrelatedservicesandprovidesaprofessional judgmentastowhetherELTcentresmeetandcontinueto meetthosestandards. NonComplianceNotice.ThisisaninternalDIACcomputer systemrecordofachangetoastudent'scircumstancesthatis automaticallygeneratedbyreportsreceivedfromeducation providersviaPRISMS. NationalSeniorOfficialsCommittee.Seniorofficialsofthe Commonwealth,StateandTerritoryeducationdepartments. TheysupporttheMinisterialCommitteeonTertiaryEducation andEmploymentwhichissoontobecometheCOAGStanding CommitteeonTertiaryEducation,SkillsandEmployment. OlsenAndAssociates.Financialservicesproviderofcurrency conversion. OrganisationofEconomicCooperationandDevelopment: seekstopromotepoliciesthatwillimprovetheeconomicand socialwellbeingofpeoplearoundtheworld.Thethirtyfour memberscomprisemanyoftheworldsmostaffluent countriesaswellasemergingcountriessuchasMexico,Chile andTurkey. Studentsmaypackagetheirstudiestocombineapreliminary coursewiththeirmaincourseofstudyontheonevisa subclass.Afoundationyearbeforeanundergraduatedegree, oranELICOScoursebeforeaVETcourse,areexamplesof packages. DoctorofPhilosophy.Ahigheruniversitydegreeawardedfor originalresearchinvarioussubjects. ProviderRegistrationandInternationalStudentsManagement System.ThisisacomputersystemdevelopedbytheDEEWRin associationwithDIACforthepurposeofreceivingandstoring informationaboutoverseasstudents. ProviderofeducationtointernationalstudentsundertheESOS Act.

NCN

NSOC

OANDA OECD

Package

PhD PRISMS

Provider

xxv

Term/Abbreviation Description PV Protectionvisa.ThisvisaformstheonshorepartofAustralias HumanitarianProgramandoffersprotectiontopeoplein AustraliawhoengageAustraliasprotectionobligationsunder theRefugeesConvention. PreVisaAssessment.Thisisanarrangementwhichappliesto offshorehigherriskstudentvisaapplicantsmakingtheirinitial visaapplicationbypaper(ratherthanelectronicallyviaeVisa). Itgivesthemanindication,butnotacommitment,asto whethertheirfinalapplicationmightsucceed. RegionalSponsoredMigrationScheme:forskilledworkers sponsoredbyemployersoperatinginregionalandlow populationgrowthareasofAustraliatofillskilledvacanciesin theirbusiness. StudentCourseVariation:areportofchangesinanoverseas studentscircumstancesreportedbyaprovidertoDEEWRand recordedinPRISMS. Educationsector.Adivisionofeducationservicesofferedby educationproviders.Forstudentvisapurposestheseven sectorsare:IndependentELICOS,Schools,VET, HigherEducation,PostgraduateResearch,NonAwardand AusAID/Defence. SkilledOccupationList.Thelistidentifiesoccupationswhich areofhighvalueandwillassistinmeetingthemediumand longtermneedsoftheAustralianeconomy.TheSOLwas developedbasedonresearchundertakenbySkillsAustralia. PersonsseekingtoapplyunderoneoftheGSMvisacategories (includingthesubclass485visa)musthaveanominated occupationwhichisontheSOL. TechnicalandFurtherEducationthestategovernmentrun providersofvocationaleducationandtraining. TertiaryEducationQualityandStandardsAgency.Thisisthe newnationalregulatoryandqualityagencyforhigher education.Itisanindependentbodywithpowerstoregulate universityandnonuniversityhighereducationproviders, monitorqualityandsetstandards. TheProposedSkilledMigrantSelectionModelasetofnew rulesandproceduresduetocommenceon1July2012.

PVA

RSMS

SCV

Sector

SOL

TAFE TEQSA

theModel

xxvi

Term/Abbreviation Description TVAG TourismVisaAdvisoryGroup.ThisisaforumforDIACandthe tourismindustrytoshareinformationonvisainitiatives,seek feedbackandinputonperformanceandpolicydevelopments anddiscussemergingissues. VisaApplicationCharge.Thisisthefeepaidtolodgean application.Itisnotrefundableifavisaisrefused. VocationalEducationandTraining.CoursesintheVETsector leadtotheawardofanAQFCertificateI,II,III,andIV,VET Diploma,VETAdvancedDiploma,orAdvancedCertificate. Yeartodate.

VAC VET

YTD

xxvii

Thefollowingvisasarereferredtointhisreport.
StudentVisa Subclass Description

570 571

IndependentELICOSSectorforstudentsstudyingstandalone Englishlanguagecourses SchoolsSectorforstudentsstudyingatprimary,juniorsecondary orseniorsecondaryschoolcourses,andapprovedsecondary schoolexchangeprograms VocationalEducationandTraining(VET)Sectorforstudents studyingCertificatesI,II,IIIorIV(exceptELICOS),VETdiploma,VET AdvancedDiploma,VocationalGraduateCertificateorVocational GraduateDiplomacourses HigherEducationSectorforstudentsstudyingaBachelorDegree, AssociateDegree,GraduateCertificate,GraduateDiploma,Higher EducationDiploma,HigherEducationAdvancedDiplomaor MastersbyCoursework PostgraduateResearchSectorforstudentsstudyingMastersby ResearchoraPhD NonAwardSectorforstudentsstudyingnonawardfoundation studies,orotherfulltimecoursesorcomponentsofcoursesnot leadingtoanAustralianaward.Thisincludesmanyexchange students. AusAID/DefenceSectorforstudentssponsoredbyAusAIDorthe AustralianDepartmentofDefenceundertakingfulltimecoursesof anytype StudentGuardianforparentsorrelativestostayinAustraliaas theguardianofastudentwhoisstudyinginAustralia

572

573

574 575

576

580

xxviii

WorkVisa Subclass

Description

119/857

RegionalSponsoredMigrationScheme(RSMS)forskilledworkers sponsoredbyemployersoperatinginregionalandlowpopulation growthareasofAustraliatofillskilledvacanciesintheirbusiness. EmployerNominationScheme(ENS)forskilledworkerssponsored byAustralianemployersforapermanentvisatoworkintheir business. SkilledIndependent(Migrant)Visaforforeignnationalsunder45 yearsofagewhohavetheskillsandqualificationsthatmeetthe AustralianstandardforanoccupationontheSkilledOccupationList (SOL) SkilledSponsored(Migrant)Visaforforeignnationalsunder45 yearsofagewhohavetheskillsandqualificationsthatmeetthe AustralianstandardforanoccupationontheSOL.Sponsorshipbyan eligiblerelativelivinginAustraliaornominationfromaparticipating StateorTerritorygovernmentagencyisrequired. TemporaryBusiness(LongStay)StandardBusinessSponsorshipfor overseasskilledworkerssponsoredbyemployerstofillnominated skilledpositionsinAustralia. SkilledGraduate(Temporary)forinternationalstudentswhodo notmeetthecriteriaforapermanentGeneralSkilledMigrationvisa toremaininAustraliafor18monthstogainskilledworkexperience orimprovetheirEnglishlanguageskills. SkilledIndependent(Residence)visaforinternationalstudents whohavecompletedtheircoursestudiesinthelastsixmonthsin Australiaandholdersofcertaintemporaryvisastoapplyfor permanentresidence.Apointstestisusedtoselectvisaapplicants withcharacteristicsneededintheAustralianlabourmarket.No sponsorshipisrequired. SkilledSponsored(Residence)visaforinternationalstudentswho havecompletedtheircoursestudiesinAustraliaandholdersof certaintemporaryvisastoapplyforpermanentresidence.Apoints testisusedtoselectvisaapplicantswithcharacteristicsneededinthe Australianlabourmarket.Sponsorshipbyaneligiblerelativelivingin AustraliaornominationfromaparticipatingStateorTerritory governmentagencyisrequired. SkilledRegional(Residence)visaforholdersofcertainprovisional visastoapplyforpermanentresidency.Theapplicantmusthavelived foratleasttwoyearsandworkedfulltimeforatotalperiodof12 monthsinaSpecifiedRegionalAreaofAustraliabeforelodgingavisa application.

121/856

175

176

457

485

885

886

887

xxix

 THISPAGEINTENTIONALLYLEFTBLANK

xxx

Chapter1 HowdidIreachmyconclusions?
IstartedtheReviewwithnopreconceivedideas.Norwasthereanysecretlistof prospectiverecommendationshandedtomebyeitheroftheMinistersinvolved. Personally,Ihavenobackgroundinthisarea.Apparentlythatwasoneofthe attractionsforthetwoMinisters:theywantedsomeonegenuinelyindependentwho wouldtakeafreshlookattheproblems.WhilethismeantIcommencedwith"clean hands"itinevitablymeantthatIalsohadan"emptyhead".Thosewhoareunhappy withtherecommendationsinthisReportwillprobablyemphasisethisfact. DuringthecourseoftheReviewImetwithmanyinterestedstakeholders. Appendix2containsalistofalmost300stakeholdersIconsultedwith.Itravelled extensivelywithinAustraliatomeetwitheducationproviders,students(andformer students),businessgroups,tradeunionrepresentatives,regulators,representatives ofStateandFederalgovernments,communitygroups,agents,otherstakeholders andinterestedparties. TogetherwiththeHeadoftheReviewSecretariat,IvisitedIndia,ChinaandMalaysia. Wemetwithawiderangeofstakeholdersineachofthosecountriesincluding,of course,representativesoftheirgovernments. Mytermsofreferencealsorequiredmetolookatwhatour"competitorcountries" aredoing.WhileIdidtalkbyphonetoseniorpeopleintheReviewoftheUKTier4 StudentVisaScheme,Ifounditespeciallyvaluabletomeetwithofficialsfromthe UnitedStatesofAmerica(US),UnitedKingdom(UK),CanadaandNewZealandin NewDelhi,BeijingandKualaLumpur.Ratherthanvisitthecapitalcitiesofour competitors,Ichoseinsteadtolookatwhattheirrepresentativesareactuallydoing inkeycountrieswherewearecompetingforstudents. AspartoftheReviewprocessIproduced(withthehelpoftheSecretariat)a discussionpapertoassistpeopleinmakingsubmissionstotheReview.That discussionpapercanbeaccessedatwww.immi.gov.au/students/student submissions/pdf/studentdiscuss.pdf.AsIsaidintheintroductiontothediscussion paper:
Itisnotmeanttobeadetaileddiscussionofalloftheissuesinthisverycomplex area.Norisitintendedtoforeshadowtherecommendationsofmyfinalreport.Itis simplyanoutlineofsomeoftheissuesalreadydrawntomyattentionwhichthe Reviewneedstoconsider.. (thediscussionpaper)ismeanttostimulatediscussionnotpreemptit.Pleasefeel freetocontributeyourthoughtsonanyissueyoufeelisimportantwhichfallswithin mytermsofreference.

TherewasapubliccallforsubmissionstotheReviewon3February2011.Acopyof therelevantmediareleaseisinAppendix3.Manystakeholdersandotherinterested partieswerealsosentemailsencouragingthemtomakesubmissions.Submissions closedon15April2011.Individualsandorganisationsmakingsubmissionswerenot limitedtomattersinthediscussionpaper.Manysubmissionsdidinfactraise importantissuesthathadnotbeencoveredinthediscussionpaperandtheyhave beentakenintoaccountinformulatingthisfinalReport.Inalltherewere202 submissions.AlistofthosewhomadesubmissionsiscontainedinAppendix4.The overwhelmingmajorityofsubmissions(minusahandfulwhereconfidentialitywas sought)weremadepubliclyavailableatwww.immi.gov.au/students/student submissions/submissionsreceived.htm.AndyesIdidpersonallyreadeachand everysubmission. Inadditiontotheformalsubmissions,therewasalargevolumeofotherwritten materialwhichtheReviewneededtoconsider.Thisincludedstatisticalinformation, mediareports,academicpublications,andexistingpolicydocumentation. AsIbegantoformulatemyrecommendationstherewasanessentialperiodof "realitytesting",particularlywithDepartmentofImmigrationandCitizenship(DIAC) officers,tomakesurethattheyarepracticalandcanbeimplemented. Thanks Iwanttotakethisopportunitytopubliclythankeveryonewhoparticipatedinthe Reviewprocess.EverycontactIhad(whetherinpersonorinwriting)helpedto contributetomyunderstandingoftheissuesandwasanimportantpartofworking towardstherecommendationsinthisReport.WhilethisReportcouldnot encompasseverysinglepieceofinformationgiventome,thatdoesnotmeanitwas notconsideredorthatitdidnotplayapartinhelpingshapemythinking. ForthosewhoaredisappointedwithmyrecommendationsIwanttosaythatyou didhaveachancetobeheardandyourviewswereconsidered.Generallythose whomightbelesshappywiththeoutcomedidputtheirviewsforcefully,articulately andcogently.Theywerentignored;itsjustthatIcametoadifferentconclusion thantheonetheywouldhaveliked. IwouldliketothankthemanypeoplefromAustralia,andcountrieswhichsend studentstoAustralia,whoassistedtheReview.Ialsoreceivedconsiderablehelp fromtherepresentativesofourcompetitorcountries.FranklyIwasamazedatthe opennessandgenerosityofbothimmigrationandeducationrepresentativesfrom Canada,NewZealand,theUKandtheUSinsharingtheirthoughtsandexperiences withme.Itwasveryhelpfulandmuchappreciated. NaturallyIamgratefultothetwoMinistersfortrustingmewiththisuniqueand interestingopportunity.Thanksalsoforthesupportfromtheirpersonalstaff.

ThisReviewwouldhavebeenimpossibletoconductwithoutthegenuinesupportof seniorofficersfromthetwodepartmentsmostinvolved:theDepartmentof Education,EmploymentandWorkplaceRelations(DEEWR)andDIAC. DIAChadacentralroletoplayasthedepartmentwhichprimarilyadministersthe studentvisaprogram.Iamparticularlyappreciativeofthewarmthandcooperation IreceivedfrommanyDIACofficersboththroughoutAustraliaandatoverseasposts. ItcanthavebeeneasyhavingaformerStatepoliticianlookingovertheirshoulders buttheDIACofficerswerealwaysprofessionalintheirdealingswithme.Manyof themdidmuchmorethanthatandwereverygenerousinthehelpandsupportthey gaveme.ItisalwaysriskytosingleoutindividualsbutIparticularlywanttothank KrunoKukoc,FirstAssistantSecretary,MigrationandVisaPolicyDivision,andPaula Williams,AssistantSecretary,EducationandTourismBranch,whoweremyprimary departmentalcontacts.Theirinputwasinvaluable. AboveallIwanttothanktheSecretariatwhichwassuperblyledbyPenelope Robinson.JohnHaytonfromDEEWRwithhiswealthofeducationalcontactsand experiencewasagreatcontributor. ForthedurationoftheReviewtheSecretariatincludedAlexandraProcailoandAnna dePlater.AtvarioustimesNeilMullenger,TandianaSudirjo,MarianneBowmanand SeanJollyalsowerepartofourteam. AlloftheindividualsintheReviewSecretariatwereatremendoushelpandIsimply wouldneverhavegottentothispointwithoutthem.Butifthereisanythingwhich youdontlikeintheReporttheyareentirelyblameless.IntheendthisismyReport andanyfaultsyoumightfindwithitaredefinitelymyresponsibility.

 THISPAGEINTENTIONALLYLEFTBLANK

Chapter2 PrincipleswhichunderpinthisReport
Noreportiseverwritteninavacuum.Everyreporthasanunderlyingphilosophy. Sometimesthatisexplicitlystated;moreoftenitisjustimplicitandrequiresthe readertodistiltheunderlyingvalues.AttheoutsetIwanttomakeclearthe principlesandassumptionswhichunderpinthisReport. 1. TheinternationaleducationsectorisagoodthingforAustralia InternationalstudentsprovidemanybenefitsforAustralia.Obviouslytheirfeesare animportantincomesource.Combinedwiththeotherexpenditures,on accommodationandlivingexpenses,theygeneratesubstantialeconomicbenefits. Internationalstudentsalsoaddtothediversityofourstudentpopulation.They provideenduringculturallinksbetweenindividuals,institutionsandcountries.The startingpointofthisreportisthatallofthesethingsaregoodforAustralia. 2. Australia's"brand"dependsonquality Australiahasajustifiablereputationasaqualityproviderofeducation.Thisistrue acrossavarietyofsectors:highereducation,vocationaleducationandtraining(VET), theteachingofEnglish(ELICOS)andprimaryandsecondaryschools.Andthereare qualityprovidersinbothpublicandprivatesectors.Regrettablyitisalsothecase thatinrecentyearssomelowqualityprovidersenteredthesectorparticularly,but notexclusively,insomepartsoftheprivateVETsector.Goingforward,maintaining Australia'sreputationforqualityisintrinsictobuildingasustainableinternational educationsector.Weneedgoodqualitystudentsingoodqualitycourses.Any diminutioninqualitycompromisesAustralia'seducation"brand"andisharmfulto thesectorasawhole.ItalsotarnishesAustralia'sbroaderreputationforqualityand couldundermineournational"brand"beyondtheeducationsector. 3. Whilegrowthisgenerallyapositiveitmustbesustainable Growthshouldnotbeanendinitself.Generallyanincreasinginternational educationsectorisdesirablebutitshouldnotbegrowthatanycost.Bringingpoor qualitystudentsintoapoorqualitycoursemighthaveshorttermeconomicbenefits. Howeverthisisnotsociallydesirable,educationallydefensiblenorhelpfulinbuilding alongtermviableinternationaleducationsector.Evenhighqualitygrowthcan bringitsownproblems.Increasingstudentnumbersputspressureoninfrastructure, rents,communityservices,and,insomecases,thelevelofcommunityacceptance.

4.

Therewillalwaysbealinkbetweenstudyandmigrationevenifonlyinthe mindsofprospectivestudents

FromtimetotimeAustraliangovernmentschangetherulesandproceduresin relationtowhocanmigratetoAustralia.Thesechangesarequiteproperlymade withtheintentionofenhancingAustralia'snationalinterest.Atdifferentpointsin timetheweightinggiventosuccessfulstudywithAustralianeducationproviderswill differ.Sotoowilltherangeofeducationalqualificationswhicharedeemedtobeof particularvaluetotheAustralianlabourmarket.Whatevertherules,atanytime thereisalwayslikelytobesomeintersectionbetweenstudyinAustraliaandthe prospectsofmigratingtoAustraliaevenifitisonlyinthemindsofprospective students.Howthisrelationshipismanagedwillalwayshaveprofoundimplications fortheintegrityofAustralia'smigrationcontrols. 5. Thereisaninherentconflictbetweenincreasingthesizeoftheinternational educationsectorandreducingtherisktointegrityofmigrationcontrols Regrettablywecanthaveitall.HugestudentnumbersandnorisktoAustralias migrationcontrolsaresimplynotpossible.Evenwiththedemiseoftheshonkiest operators,whowerereallysellingmigrationoutcomeswhilemasqueradingas educationproviders,thereisstillsubstantialriskinthesystem.Atoneendofthe spectrumeducationalprovidershaveafinancialinterestinhavingmore internationalstudents.Attheotherendofthespectrum,DIAChastheresponsibility toonlyallocatevisastostudentswhowillreturnhome(exceptwhenoffereda legitimatepathwaytopermanentresidence).ItisalsoDIACofficerswhohavethe difficulttaskofremovingthosewhooverstaytheirvisaperiod.Unfortunately,the peoplewhoarethehardesttoremoveareoftenthepeopleAustraliawouldbeleast likelytochooseiftheywereapplyingformigrationfromtheirhomecountries. 6. ItistheAustraliangovernmentofthedaywhichdecideswhatisinAustralia's nationalinterest Thewelfareandinterestsofinternationalstudentsareanimportantandlegitimate concern.SotooisthefinancialinterestofAustralianeducationalprovidersandthe broadereconomicinterestsaffectedbythenumberofinternationalstudentsin variouscommunitiesaroundAustralia.Sofarasmanyindividualstudentsare concerned,thecloserthelinkisbetweenstudyinginAustraliaandmigrationto Australiathebetter.Andthemoredesirableitisfromastudentpointofviewthen thebetterthepotentialshorttermrewardsthereareforeducationproviders. ButintheenditistheAustralianGovernment,notstudents,notagents,not educationalproviders,notindividualemployersorevenstategovernmentswhich mustdecidewhattheappropriatelinkisbetweentheinternationalstudentsector andAustralia'smigrationpolicy.Anditisthegovernmentwhichmustalsodecide theappropriatebalancebetweenthebenefitsinternationalstudentsbringandthe riskssomepotentialstudentsposetotheintegrityofthenationsmigrationcontrols.

7.

Aneffectivestudentvisasysteminvolves"playingthepercentages"

Nomatterhowwelldesigneditis,novisaprogramprovidesguaranteesforthe outcomesofindividualvisaholders.Forexample,thegrantingofshorttermvisas fortourismpurposesdoesnotguaranteethatthetouristwillbehaveappropriately duringtheirvisitandwillreturnhomeattheconclusionofthevisaperiod.Instead, thesystemreliesuponaseriesofindicatorswhichmaximisethechancesofthose peoplegrantedvisascomplyingwiththeconditions.Whentheindicatorsare sensibleandtherulesarecarefullyappliedthenahighpercentageofsuccessful applicantswillbehaveappropriately. Thesameistrueofthestudentvisaprogram.Particularindividualcasescangive quiteaberrantresults.Takethefollowingexamples,bothofwhicharetheoretically possible: AhighlyeducatedstudentfromaveryrespectablefamilyinanOrganisationof EconomicCooperationandDevelopment(OECD)countrycomestostudyfora PhDinchemistryataleadingAustralianuniversity.Heendsupmanufacturing illegaldrugsforacrimesyndicate. Apoorlyeducatedstudentfromafamilywithcriminalconnectionsinanon OECDcountryenrolswithanAustralianeducationprovideratthelowerendof themarket.Hisrealintentionisnottostudybuttomanipulatethesystemto workandgainpermanentresidentstatus.Howeverovertimehebecomesa successfulbusinessman,amodelcitizenandhisdaughterbecomesauniversity professorofchemistry. Bothoftheseextremesreallycouldoccur.Butastudentvisaprogramcannotrest uponindividualcases.Itmustinsteadlookathowlikelyitisthatthetotalgroupina particularclassofapplicantswillgiveAustraliaagoodorapooroutcome.Theodds ofmanyintheclassofpeopleinthefirstexampleabove"goingbad"isrelatively low.Bycontrast,theoddsofalargegroupwiththecharacteristicsofthesecond examplebeingthesortofmigrantsAustraliawantsisalsolow.Inallpotential groupsofstudentvisaholders,someindividualswillturnoutbetterandsomeworse thanthegeneralgroup.Butitisthelikelybehaviourofthetotalgroupwhichmust formthebasisofpolicyformulation.Wemust"playthepercentages"ifweareto manageriskeffectively. 8. Thebestwayofreducingmigrationriskistorefusetheinitialapplicationsof peopleseekingtoexploitthesystem OnceinAustralia,peopleintentonunderminingtheintegrityofthemigrationrules mayseekreviewmechanismsinordertopotentiallyavoid,ordelay,removalfor failuretocomplywiththeirvisaconditions.Thisisnottosaythateveryvisaholder whoseekstoavailthemselvesofAustraliasjusticesystemandappealsproceduresis someonetryingtopervertthesystemfornefariousends.However,thesamelegal proceduresavailableforthosetheprocesswasintendedtoassistarealsoavailable tothosewithlesspureintentions.

Thereisalsoalwaysthepossibilityofpeoplewhointendtorortthesystemgoing "underground"andseekingtoavoiddetectionforfailingtocomplywithvisa conditions. ThefinancialcostsofremovingfromAustraliathosewhobreachtheirvisaconditions arecomparativelyhighcomparedtothecostsofrigorouslyassessingtheirinitial applications.Thereforeadollarspentondealingappropriatelywithhighrisk applicantsintheirowncountryatthetimeoftheirapplicationcouldsavethe Australiantaxpayermanytimesthatamountindetectionandappealprocesses shouldsuchanapplicantgettoAustralia. 9. Resourcesshouldbeconcentratedontargetingrisk Thesimplerandeasierproceduresareforlowriskapplicantsthenthequickerand lessresourceintensivetheprocesswillbeforboththemandDIAC.Itisin everybodysinteresttoexpeditethegrantingofstudentvisastolowriskapplicants. Longandcomplicatedproceduresnotonlydelaytheissuanceofvisastolowrisk applicantsbuttheyalsodivertresourcesthatcouldbebetterusedtogivemore carefulconsiderationtohigherriskapplications. Theprimaryplacefortargetingresourcestohighriskapplicantsis"offshore"when theinitialapplicationismade.Howeverthesameprincipleoftargetingresourcesto highriskareasalsoshouldapplywithinAustraliawhendealingwithbreachesofvisa conditions. 10. Inordertocombatnewrortsastheyemerge,therulesandprocedures cannotbestatic Whilethevastmajorityofinternationalstudentshavegoodintentions,therewill alwaysbesomeapplicantswhowillseektoexploitthesystem,eitherbytryingto manipulateweaknesseswithintherulesorbytryingtocircumventtherules. WhileIamconfidentthattheadoptionoftherecommendationsinthisReportwould leadtoanimprovedstudentvisaprogram,Icannotguaranteethatthemeasures wouldbefoolproof.IndeedIamcertainthattheywillnotbe. Inevitablytherewillbeunintendedconsequencesofanychangestothestudentvisa program.Unfortunatelythenatureofmostunintendedconsequencesisthatthey arealsounanticipated.Sowhennew,unanticipatedrortsemergeitisimportantto respondtothemquickly.Aspeoplewithdubiousmotivesfindnewwaysto circumventthesystemitisessentialthattherelevantauthoritiesrespondquickly andadjustthesystemtoensuretheintegrityobjectivescontinuetobemet.

Chapter3 TheContext
Australiasinternationaleducationsectorissubstantial.Before1985itwasquite tiny.ThebigchangecamewhenthethenAustralianGovernmentfirstallowed universitiestorecruitfullfeepayingstudentsfromoverseas.Fromthenonthe sectorgrewsteadily:intheuniversities,otherhighereducationproviders,andthe VETsector.ThisgrowthwasparalleledbyincreasingenrolmentsinEnglishlanguage training(ELICOS)andsecondaryschools. Table3.1below,showsthatovertheperiod2002to2010highereducation enrolmentshavegrownsteadily.BycontrasttheVETsectorexperiencedexplosive growthandquadrupledinsizeovertheperiod2005to2009. Overallenrolmentspeakedin2009.Howeverhighereducationenrolments continuedtogrowin2010.VET,ELICOSandOtherenrolmentspeakedin2009while Schoolspeakedin2008.TheOthercategorycoversnonawardcourses, predominantlyFoundationcoursesbutalsostudyabroadandexchange.Theseare mainlyrunbyuniversities.
Table3.1Enrolmentsbysector20022010 Sector HigherEducation VET Schools ELICOS Other GrandTotal
Source:AEIStatistics

2002 2003 2004 124,666 146,128 164,008 44,786 45,991 45,547 23,223 26,945 27,311 57,452 62,101 61,743 23,933 25,949 25,952 274,060 307,114 324,561

2005 177,864 50,919 25,096 64,560 26,257 344,696

2006 185,449 67,018 24,479 76,905 26,437 380,288

2007 192,223 101,988 26,765 102,214 27,331 450,521

2008 202,270 153,881 28,303 127,247 30,122 541,823

2009 226,011 207,985 27,380 137,539 31,748 630,663

2010 243,591 206,581 24,235 113,477 31,235 619,119

Studentscamefromavarietyofcountries.Notsurprisingly,thebiggestenrolments werefromthetwomostpopulouscountriesintheworld,ChinaandIndia.Among otherthings,Table3.2belowillustratestherapidrise,andsubsequentsignificant fall,inthenumbersofIndianstudentsstudyinginAustralia.

Table3.2Enrolmentsbynationality20062010 Nationality China India RepublicofKorea Vietnam Thailand Othernationalities GrandTotal
Source:AEIStatistics

2006 95,581 38,670 30,888 6,710 17,719 190,720 380,288

2007 113,680 62,861 34,256 9,634 19,749 210,341 450,521

2008 134,641 96,589 35,145 15,853 22,242 237,353 541,823

2009 157,262 120,496 35,656 23,713 26,380 267,156 630,663

2010 167,767 100,310 33,986 25,788 24,882 266,386 619,119

ThemostrecentAustralianEducationInternational(AEI)data,totheendofApril 2011,reflectsthesametrendswithrespecttooverallenrolments.Enrolmentsin highereducationcontinuetogrowalbeitateverslowerrateswhilethedeclinesin theVET,ELICOS,SchoolsandOthersectorscontinuedunabated.

Table3.3Enrolmentsbysector20102011AprYTD Sector YTDApr2010 YTDApr2011 HigherEducation 198,416 203,708 VET 144,291 115,364 ELICOS 64,104 50,615 Schools 20,200 17,340 Other 19,229 17,636 TotalinAustralia 446,240 404,663
Source:AEIStatistics

Change% 2.7 20.0 21.0 14.2 8.3 9.3

Overallenrolmentsaredown9.3percentyeartodate(YTD)untilApril2011when comparedwithApril2010.Howeverthehighereducationsector,whichismainly universities,continuedtogrowslightly(2.7percent).BoththeVET(20percent) andELICOS(21percent)sectorscontinuedtosubstantiallycontract.Enrolmentsin Schools(14.2percent)andtheOthercategory(8.3percent)alsocontinuedtofall.

Table3.4Enrolmentbynationalities20102011AprilYTD Nationality YTDApr10 YTDApr11 Change China 123,818 120,799 2.4 India 74,530 52,156 30 RepublicofKorea 24,512 21,417 12.6 Malaysia 20,130 19,565 2.8 Vietnam 18,529 18,043 2.6 Othernationalities 184,721 172,683 6.5 Allnationalities 446,240 404,663 9.3
Source:AEIStatistics

Shareofall 29.9 12.9 5.3 4.8 4.5 42.7 100

AscanbeseeninTable3.4abovetherewasadeclineinenrolmentsfromallthetop fivenationalities.Howeverthedeclineswereverydifferentwiththenumberof enrolmentsfromChinadecliningby2.4percentwhilethosefromIndiadeclinedby 30percent. WhilethetotalnumberofstudentsinAustraliaremainsstrongbyhistorical standards,thedeclineinnewenrolmentsintheperiod20092011willhavea continuingeffectinfutureyears,especiallyintheuniversitysectorwherecourses normallyrunforthreeorfouryears.Evenifnewenrolmentsreturnnextyearto earlierlevelsandforthesectorasawholethatisunlikelytheflowthrough effectsofthe20092011reductionswillensurethattheoverallnumberswillstill bebelowthepreviouspeak.

10

Forthoseeducationproviderswhichrelyentirelyoninternationalstudentsany reductioninnumbersobviouslyimpactstheircommercialviability.Othereducation providerswhichhaveamajorityofdomesticstudentsbutalsosubstantialnumbers ofinternationalstudents,liketheuniversities,canalsobestronglyaffectedbyadrop ininternationalstudentnumbers. Notonlyistherealossoffeeincomefromanyreductioninthenumberof internationalstudentscomingtoAustraliabuttherearealsoadverseflowoneffects fortheeconomy.Studentsdontjustpayfees;theyrentaccommodation,buyfood andspendonarangeofgoodsandservices.Theirfamiliesoftencometovisitand thataddstoAustraliasrevenuederivedfromtourism.Fewerinternationalstudents alsomeanfewerdirectjobsintheeducationproviders.Thiscanhaveafurther negativemultipliereffectonthelocaleconomy,especiallyinthoseregionalcities whereeducationprovidersareamongthemainemployers. WithregardtotheAustralianeconomy,internationaleducationisasubstantial industryinitsownright.However,throughoutthisreportIhavedeliberatelynot usedtheterm"industry".InsteadIhavereferredtothe"internationaleducation sector".Manystudents,parentsandrepresentativesofgovernmentsinthe countriesthatprovidestudentstoAustraliabaulkattheterm"industry".Whilethey acceptthatoureducationprovidersallmakea"profit"onthefeesofinternational students,thereisstillastrongbeliefthattheunderlyingphilosophyshould emphasiseeducationalratherthancommercialimperatives. Nomatterwhichtermyouusetodescribeourinternationaleducationproviders, recruitingstudentsiscriticallyimportanttotheircommercialviability.Soitishardly surprisingthattherewasuniversalconcernwithintheinternationaleducationsector whenstudentnumbersbegantofall.Manyinthesectorrefertotherecentpastas creatinga"perfectstorm".Theypointtoaseriesoffactors,thecombinedeffectof whichwasaseveredownturninenrolmentnumbersofinternationalstudentswith Australianeducationalproviders.Thosefactorsinclude: ThestrengthoftheAustraliandollar.Betweenthestartof2009andtheend of2010theAustraliandollarincreaseditsvalueagainstthecurrenciesofour maincompetitorcountries.Theincreasesinvalue,calculatedusing www.oanda.com,wereby40percentinrelationtotheUSdollar,35percent fortheUKpound,19percentfortheCanadiandollarand11percentagainst theNZdollar.ForanyAustralianbuyinggoodsfromAmericaortheUKthis wasterrific.ButforAustralianeducationprovidersitquicklymeanttheir coursesbecamecomparativelymoreexpensiveforinternationalstudentsthan theywerepreviously.AnypriceadvantageAustralianeducationalproviders mayhavehadevaporatedinaquickandunexpectedmanner.Andtomake mattersworse,Australiastwolargestcurrencyappreciationsinvolvedourtwo biggestcompetitors.

11

TherapidityandmagnitudeofchangestoAustraliasmigrationandstudent visapolicysettings.InAugust2009strongerintegritycheckswereputinplace forstudentvisaapplications.Theseincludedmuchcloserscrutinyof applicantsbyDIACofficersbasedinsomeofourmajormarkets.Thisinitiative ledtoasubstantiallyincreasedrejectionrateforapplicantsfromsomepartsof somecountries.From1January2010theamountoflivingexpenseswhich DIACrequiredapplicantstohaveaccesstoforeachyearofstudydramatically increasedfrom$12,000to$18,000.Thisfigurehadnotbeenincreasedsince 2001andnolongerreflectedthetruecostofliving.On8February2010the AustralianGovernmentrevokedtheMigrationOccupationsinDemandList(the MODL).Thisactionalonedramaticallyweakenedtheconnectionbetween studyinginAustraliaandgainingpermanentresidence.Priortothis, internationalstudentsundertakinganycourseontheMODLandtheSkilled OccupationsList(SOL)hadwhatmanyperceivedasanalmostguaranteedpath togainingpermanentresidenceinAustralia.Whileallofthemigrationand visachangeswerejustifiableonthegroundsofintegrityandnationalinterest therewasaperceptioninsomepartsoftheworldthatAustraliahad"rolledup thewelcomemat". DamagetoAustraliasreputationflowingfrominternationalstudentssafety concerns.Inthelaterpartof2008andthrough2009therewasanupsurgein reportedcrimeswherethevictimswereinternationalstudents.Thelargest incidenceofthiswasinMelbourneandthevictimswereparticularlyIndian studentsstudyingvocationalcourses.Thesesafetyconcernsreceivedhuge publicityoverseas,particularlyinIndia.Notsurprisinglythisundermined Australiasreputationasasafedestinationforstudents.Theconcernsof potentialstudentsandtheirparentswerenotlimitedtoprospectiveIndian studentsconsideringvocationaleducationcoursesinMelbourne.Itspread acrossstudentsandparentsfromarangeofcountries,andaffectedtheir judgementsaboutaplethoraofcoursesinmanyAustraliancities.Thestate governmentsandtheirpoliceforcesrespondedtotheseconcernsandthe physicaldimensionoftheproblemwasdramaticallyimproved.Butbythenthe reputationaldamagehadbeendoneanditwilltakesometimetoovercome thenegativeperceptions. Badpublicityfromproviderclosures.Inthelasttwoyearsasignificant numberofproviders,primarilyintheprivateVETsector,closedwithlittleorno warning.16providersclosedin2009displacing5,795internationalstudents. Afurther5,891studentsweredisplacedin2010whenanother33providers closed.Insomecasesthesamestudentsweredisplacedmorethanonce. WhileAustralia'stuitionassuranceprotectionarrangementsassistedthose studentsintoplaceswithothereducationproviders,theclosuresresultedin negativepublicityinternationally.Understandably,potentialstudentsand theirparentsworriedaboutwhethertheprovidertheywereconsideringwould alsoendupcollapsing.

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TheeffectsoftheGlobalFinancialCrisis(GFC).Almosteveryaspectofthe AustralianeconomywashurtinsomewaybytheGFC.Theinternational educationsectorwasnotimmune. Increasedcompetitionfrominternationaleducationprovidersinother countries.MoreinternationalstudentsstudyatuniversitiesintheUSthanin Australia.ButthepercentagesofinternationalstudentsinmostindividualUS universitiesaremuchsmallerthanintheirAustraliancounterparts.Sothey cantakeonmanymoreinternationalstudentsiftheywantto.Inthelast coupleofyearsasignificantnumberofUSuniversitiesandcollegeshave becomemuchmoreactiveinrecruitinginternationalstudents.Inthecaseof somepublicuniversitiesthishasbeenareactiontoreductionsinfundingfrom therelevantstategovernments.Theyhavesoughtto"fillthefinancialgap"by recruitingmoreinternationalstudents.Canadatoohasbecomeincreasingly activeinrecruitinginternationalstudents.Notwithstandingsometough decisionsarisingfromtheirrecentreview,theUKcontinuestobeanactive competitorinAsia,particularlyintheuniversitysector.Onamuchsmaller scaleNewZealandcontinuestobeactive.SomeEuropeancountrieswhose mainlanguageisnotEnglishhaveintroducedcoursesinEnglishtoattract internationalstudents.AndsomecountrieslikeSingaporeandMalaysiawhich havetraditionallysenttheirstudentstoAustraliaarenowbeginningto competewithAustraliaforthestudentsofothercountries.

The"perfectstorm"isrealanditisaseriousproblem.Howeveritisimportantto recognisetwoadditionalfacts. Firstly,anumberofmattersnegativelyimpactingtheinternationaleducation sectorarethingswhicharebeyondthecontrolofboththeMinisterforTertiary Education,Skills,JobsandWorkplaceRelationsandtheMinisterforImmigration andCitizenship.TheycannotsolvetheeffectsoftheGFCinthecountrieswhere Australianeducationprovidersseektorecruitstudents.Norcantheyinfluencethe factorswhichleadsomeUScollegestomoreactivelyrecruitstudentsfromAsia. SimilarlytheycannotreducethevalueoftheAustraliandollarinordertomakeour educationprovidersmorepricecompetitiveinthemarketforinternationalstudents. True,thesetwoMinisterscansignificantlyimpactsomeoftheothermatters, principallythevisaandmigrationsettingsand(oncethenewnationalregulatorsare inplace)thequalityofregisterededucationalproviders.Buttheinternational educationsectorshouldnotassumethatthegovernmentdealingwiththosematters willnecessarilyrestoreinternationalstudentnumberstothepreviouspeak.Evenif allprovidersareperfectlyhappywithallofthepostReviewinitiativesimplemented bytheAustralianGovernment,thoseinitiativesalonecannotpossiblysolveallofthe problemsfacedbythesector.

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Secondly,therearegenuineconcernsabouttheriskstoAustraliasmigration programposedbysomeaspectsoftheinternationaleducationsector.The migrationandstudentvisachangesin2009and2010mentionedabovedidhavean impactontheinternationaleducationsector.Buttheywerenotmadearbitrarilyor capriciously.Norweretheymadeinavacuum.Theyweremadepreciselybecause certainthingswereoccurringwithinthesectorincludingthingspreviously sanctionedbygovernmentwhichwereunderminingtheobjectivesofAustralias migrationprogram. Between2002and2010thenumbersofinternationalstudentenrolmentsrose dramaticallyfrom274,060to619,119.Therisewasespeciallyrapidbetween2005 and2009whentheVETsectorincreasedfrom50,919to207,985.Anditwas accompaniedbyanespeciallydramaticincreaseinenrolmentsfromtheIndia subcontinent.Theserosefrom27,485to120,496injustfiveyears.Thegrowthin thenumbersofVETstudentsfromIndiawasevenmorespectacularincreasingfrom 3,389in2005to75,573in2009. Asignificantdriverofthisgrowthwasthelinkbetweeninternationaleducationand migrationtoAustralia.ThiswasthepolicyoftheHowardGovernment,initially continuedbytheRuddGovernment.Theunderlyingprincipleseemedverysensible: ifAustralianeededmigrantstofillskillshortagesthenwhynottraininternational studentsherepriortothemmigrating?Thatwaywewouldknowthattheir qualificationsweredefinitelyrightforAustralianstandardsandtheywouldhavea muchbetterunderstandingoftheAustralianwayoflifethananewlyarrived migrant.AndthefactthattheinternationalstudentswerepayingAustralian educationprovidersfortheirtrainingwasabonus. Intheoryitwasagreatidea.Unfortunatelyitdidntworkoutsowellinpractice. UnquestionablytherearestudentswhocametoAustraliaviathisarrangement, studiedhardforgoodqualifications,obtainedpermanentresidencestatus,later becamecitizens,andcontinuetoworkinaprofessionwhereAustraliahasskill shortages.Theseformerinternationalstudentshavebecomevaluablemembersof ournation.Regrettablythatwasnotthewholestory.Underthis(nowabolished) arrangementaninternationalstudentwasvirtuallyguaranteedpermanentresidence inAustraliaifheorshedidacoursewhichledtoaqualificationforanoccupationon theMODLoranoccupationthatgained60pointsontheSOL.Thesewereverylong lists.Doacourseforanyofthenumberoccupationsontheselistswhetheritwas miningengineer,accountant,hairdresser,cook,baker,drainer,fibrousplastereretc andsolongastheypassedahealthcheck,metEnglishlanguagerequirements,and didnthaveacriminalrecordorwereasecuritythreat;thentheywereonthefast tracktopermanentresidence.

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FormanypeoplethisbecameaneasywaytomigratetoAustralia.Youcantreally blamethestudentsforthat.Australiaisagreatplacetolive.Butinsteadofdriving anincreaseinparticularskillswhichAustralianeeded,theschemeoutlinedabove endedupdrivingmigrationperse.PeopleseekingtomigratetoAustraliaoftenlook fortheeasiest,cheapest,fastestwaytodoso.Alotofreputableinstitutions rampedupcourseswhichwouldgiveaninternationalstudentaSOLorMODL qualification.Somelessreputableinstitutionssetupcourseswithnoserious educationalpurposebutbasicallydesignedtogetfeesfromstudentsenroutetoa migrationoutcome.Furtherdownthefoodchainsomenefariousoperatorssetup wholeinstitutionsasnothingmorethanamigrationscam. Thenthereweresomeunscrupulouseducationagentsonimpossiblyhigh commissions,funnellingstudentswithfraudulentdocumentsintoanycourse irrespectiveofthequalityofthecourseorthestudent.(IhavemetseveralDIAC officerswhoweretoldbyprospectivestudentsthattheirinterestinstudyinga hospitalitycoursewas"becauseIwanttoworkinahospital"). Manyoftheformerstudentswhoaccessedthisschemehaveobtainedpermanent residencestatusinAustralia.Andwhilesomeareworkingintheoccupationsthey trainedformanyarenot.Ourcapitalcitiesdoseemtohavealotoftaxidriverswho studiedcommercialcookery,hairdressingorInformationTechnology(IT).Australia endedupwithalotmoremigrantsbutthatofitselfdidnotadequatelyaddressthe nationsskillshortages. ItisnottheroleofthisReviewtoapportionblameforthatunfortunateperiod. SufficetosaythatthechangesmadebytheAustralianGovernmentin2009and 2010wereinresponsetothisunderminingofthemigrationprogram. However,theeffectiveseveringofthenexusbetweenstudyandpermanent residencehasnotremovedalloftherisksinthestudentvisaprogram.Unlessitis conductedoffshore(moreaboutthatinChapter15)internationaleducationdoes notexistindependentofmigrationpolicyorindependentoftheprospectsof underminingthatpolicy. Australiaisawonderfulcountryandforsignificantnumbersofpeoplefromless affluentcountriesAustraliaisamoreattractiveplacetolivethantheirhome country.Itisabasicfactoflifethatmorepeoplewouldliketocomeandlivein Australiathanissustainable.Somepeopletryandmanipulatethemigrationrulesto theirownadvantage;otherssimplybreakthem.Itishardlysurprisinggiventhe relativeattractivenessofAustraliathatsomepeoplewilltryandcircumventthe properpathwaysiftheyareseekingtomigrate.Similarly,forpeoplewhodonot havetherequisiteskillsorcharacterthatAustraliaisseekinginprospectivemigrants, theonlywayforthemtogethereistoblatantlybreaktherules.

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SomepeopletryingtogetaroundAustralia'smigrationrulespaypeoplesmugglers toputthemonboats.Otherstryandobtainavisaasatouristwiththeintentionof nevergoinghome.Andsomewillseektocomeonastudentvisawithnogenuine intentiontostudybutwithafiercedeterminationtoremaininAustralia.Inallof thesecasestherewillalwaysbepeoplewithoutscruplesbutwithhighdemandsfor moneywhowillseektoexploitthesituationofthosedeterminedtocometo Australia. OfcoursethisdoesnotmeanthateveryoneseekingtocometoAustraliahasimpure motives.TheoverwhelmingmajorityoftouristswhovisitAustraliahavean enjoyabletimeandreturntotheirhomes.Some"boatpeople"aregenuinerefugees whommostAustraliansarepreparedtoembraceonhumanitariangrounds.The vastmajorityofinternationalstudentsarelawabidingandwillreturntotheirhome countriesirrespectiveofwhetherthereisapathwaytopermanentresidencein Australia.Andthosewhodofindalegitimatepathwaytopermanentresidenceare generallygreatadditionstooursociety.ButAustraliadoesneedtochoosecarefully. Thedoorisnotopentoanyonejustbecauseheorshewouldliketomigrateto Australia.UnquestionablytheAustralianGovernmenthasboththerightandthe obligationtointroducethenecessarycontrols. The"perfectstorm"scenarioisrealanditisaseriousproblemfortheinternational educationsector.Butitisnottheonlyrelevantpartofthecontextinwhichthis Reviewtakesplace.Otherfactorswhichneedtobetakenintoaccountinclude: concernsaboutthequalityofsomeeducationprovidersandtheeffectiveness ofregulatorycontrols; businessgroupsconcernsaboutobtainingworkerswiththerightskillsandnot just"paperqualifications"; tradeunionconcernsabouttheunderminingofquality,wagesandconditions, andtheexploitationofbothinternationalstudentsandAustralianworkers; debateinourcountryoverthesizeandnatureofthemigrationprogram;and thenewskilledmigrationrulesannouncedwiththe2011/12FederalBudget. ThenewproposedSkilledMigrantSelectionModel(theModel)isatwostage processtobeimplementedfrom1July2012.Interestedpeoplewillfirstberequired tomakeanexpressionofinterest.Thatisanonlineprocessandcanbesubmitted fromanywhereintheworld,includingbysomeonetemporarilywithinAustralia.But itisnotavisaapplicationandthereforewillnotgiverisetoabridgingvisawhile someonewaitsforadetermination.

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Fromtimetotimeindividualswhohavemadeanexpressionofinterestmightbe invitedtolodgeanapplicationforavisa.Thisisthesecondstageoftheprocess.Itis aninvitationtoapply,notaguaranteeofapproval.Generallyapersonwillonlybe invitedtolodgeanapplicationforskilledmigrationiftheyhaveasuitable qualificationandworkexperienceinanareawhereAustraliaseeksskilledmigrants atthetimetheinvitationismade. TheabolitionoftheMODLlistandtheintroductionofabettertargetedSOLin2010 effectivelyremovedanalmostguaranteedpathwaytopermanentresidencefor internationalstudentswhoundertookcertaincoursesofstudy.Afterthattimea prospectivestudentcouldstillmakejudgementsbasedonamuchreducedSOLon whatcoursesmightimprovetheirchancesofasubsequentsuccessfulapplicationfor permanentresidence.ImplementationoftheModelfromJuly2012shiftsthe dynamicfurthertowardsAustraliasskillneedsratherthantothemigration aspirationsofindividualstudents.Hopefullythismightleadtomorestudents studyingthecoursestheyfindusefulfortheirownoccupationalfuturewherever thatmightberatherthananincentivetopickcoursesbecausetheymightleadtoa migrationoutcome. Noneofthismeansthattherewontbepathwaystomigrationforindividual internationalstudentswhohavetheskillswhichAustralianeeds.Butthepathway willbemuchmoretargetedthanitwasinthepast. Nordothesechangesremovetheriskofindividualstudents,agentsoreducational providerstryingtorortthestudentvisasystemformigrationoutcomes.Perversely theremovalofasetofarrangementsunderwhichpeoplecouldabidebytherules andgetpermanentresidenceforthewrongreasons;nowincreasestherisksof individualrorts.Ifthestudentrulesnolongerfacilitateamigrationoutcomefor peoplewhowouldotherwisehavegreatdifficultymigratingtoAustralia,thenthey havethreebasicchoices:accepttheycannotcome;seektomanipulatetherules;or deliberatelybreakthem.Thisrealityneedstobefactoredintothecontextinwhich decisionsaremadeaboutthefuturerulesfortheinternationalstudentvisaprogram.

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 THISPAGEINTENTIONALLYLEFTBLANK

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Chapter4 TheFoundationStone
Thefirstitemofbusinesswhenreviewingthestudentvisaprogrammustbetolook atthecriteriaforgettingavisa.Justbecausesomeonewantsastudentvisadoesnt meantheyshouldgetone.Theremustbesomebasicrules. NowIhaventcommissionedasurvey,butitsaprettyfairbetthatthegeneralview ofwhataninternationalstudentshouldbeisfairlysimple:itissomeonewhocomes herewiththeintentionofgettingagoodeducationandthendepartsAustralia. InthatregarditsnotmuchdifferenttoatouristwhocomestoAustralia,hasagood timeandthengoeshome.Astudentissomeonewhoisherelongerandwithamore focussedagenda,namelytoimprovetheireducation,buttheunderlyingprincipleis thesame.Maybesomestudentswillendupmigratinghere.Maybesometourists willtoo.Butthatsaseparateissuetobedealtwithinaseparateprocess. Thecriteriaforatouristvisa(whichcomprisesome90percentofallvisitorvisas) areconsistentwiththebroadexpectationjustoutlined.Theoverarchingcriterionis that"theapplicantsatisfiestheMinisterthattheexpressedintentionofthe applicantonlytovisitAustraliaisgenuine". Anapplicantsclaimagainstthiscriterionistestedbylookingat: personalcircumstancesthatwouldencouragethemtoreturntotheirhome countryattheendoftheproposedvisit(forexample,ongoingemployment, familymembers,property,economicsituation); personalcircumstancesintheirhomecountrythatmightencouragethemto remaininAustralia(forexample,militaryservicecommitments,economic situation,civildisruption); conditionsthatmightencouragetheapplicanttoremaininAustraliasuchas personalties; theapplicantsimmigrationhistory(forexample,previoustravel,compliance withimmigrationlawsofAustraliaorothercountries,previousvisa applications/complianceaction); theapplicant'scredibilityintermsofcharacterandconduct(forexample,false andmisleadinginformationprovidedwithvisaapplication); whetherthepurposeandproposeddurationoftheapplicant'svisitandtheir proposedactivitiesinAustraliaarereasonableandconsistent(forexample,is theperiodofstayconsistentwith"tourism");and informationinstatistical,intelligenceandanalysisreportsonmigrationfraud andimmigrationcompliancecompiledbythedepartmentaboutnationals fromtheapplicantshomecountry.

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TheassessmentprocessinvolvesanelementofdiscretiononthepartoftheDIAC officerassessinganapplication.Butthisisunderpinnedbyaseriesofguidelinesand objectivematterstobetakenintoconsideration.DIACofficersareadvisedtotakea fairandreasonableapproachtothegenuinevisitorrequirementandaregiven advice.Forexample,officersareadvisedonhowtoassesswhetheranapplicanthas sufficientfundstosupportthemwhilevisitingAustralia,howtoassessolder applicantsandhowtoconsiderriskfactorssuchasapreviousapplicationfora permanentvisa. DIACdoesanimpressivejobinassessingapplicationsforvisitorvisas.Everyyearit processessome3.5millionapplications.Noassessmentsystemcaneverbeperfect theonlywaytobecompletelysurenoonebreachesavisaconditionisneverto grantanyvisas.ButtheoverstayrateforvisitorvisasgrantedbyDIACisverylow. ThepercentageofvisitorvisaholdersfailingtoleaveAustraliabeforetheirvisas expiredwas0.75percentin200910(thatisonly3inevery400).Forthesame periodtherateofvisitorvisaholderswhoappliedforaprotectionvisaafterarriving inAustraliawas0.07percent(2680people).Thesefiguresdemonstratethatthe vastmajorityofvisitorvisaapplicantscontinuetobecorrectlyassessedasgenuine visitors. AssessingapplicantsforvisitorvisasiscorebusinessforDIACandtheyarevery goodatit. Bycontrastthecriteriaforassessingastudentvisaapplicationisnotwhatyoumight ordinarilyexpect.Itstartswithaseriesofobjectiverequirementssuchas: aconfirmationofenrolment(orletterofoffer)fromaCommonwealthRegister ofInstitutionsandCoursesforOverseasStudents(CRICOS)registered educationprovider; financialcapacitytocoverairfares,tuitionfees,livingcosts(levelofproofand periodheldvariesaccordingtotheapplicantsAssessmentLevel); documentaryproofofacertainlevelofEnglishlanguageproficiency(levelof proofandEnglishstandardrequireddependsonAssessmentLeveland educationsector); academicrecordevidenceofpriorstudyandtraining(levelofproofagain dependsonAssessmentLevel); healthmustbeofsoundhealth,andinsomecasesundertakeamedical examination.Theapplicantalsomusthaveoverseasstudenthealthcoverfor thedurationoftheirvisa;and charactermustbeofgoodcharacter,makeacharacterdeclarationandmay beaskedtoprovideapoliceclearance.

Aflowchartoftheapplicationprocess,includingfurtherdetailsofthesecriteria,isat Appendix5.

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Aftertheseobjectivecriteriaaresatisfiedfurtherconsiderationisgiventowhether theapplicantisa"genuinestudent"includinginthecatchallcriterion"other relevantmatters". Theoreticallyitispossibleforanapplicanttomeetalloftheobjectivetests,be judgeda"genuinestudent"andthenfallatthefinalhurdlebecauseoneofthe "otherrelevantmatters"wasthatthestudentadmittedhehadnointentionofever goinghome.Itisalsotheoreticallypossible,andprobablymorelikely,foraperson withidenticalcircumstancestoclearallofthehurdlesbecausetheynever volunteeredtheirrealintention. Inpractice,whatDIACofficersendupdoingwhentheyareconcernedabouta particularapplicantistolookhardatthecriterionofwhatisa"genuinestudent". Thisphraseishighlycontentiousandthetwodepartmentsmostinvolvedin internationaleducationDIACandDEEWRascribeverydifferentmeaningstothis term.Nowherearethesedefinitionsformallyrecordedbuttheyareembeddedin thecultureofeachdepartment.ForDEEWRofficersa"genuinestudent"issomeone whoisseriouslycommittedtoacourseofstudy.ForDIACitbecomescodefor whethertheapplicantisprimarilyastudentandnotsomeoneseekingtomanipulate theprogramformigrationpurposes. Sometimesthesetwodifferentdefinitionscoalesce.Forexampleneither departmentwouldconsiderapersonwithverypoorEnglish,seekingtoattenda courserunbyapoorqualityproviderwithahistoryofinvolvementinmigration scams,asa"genuinestudent".DEEWRwouldntseethemasseriousabouttheir educationandDIACwouldseetheirlackofgenuinenessfromaneducational perspectiveasproofthattheywereseekingamigrationoutcomeandtherefore unlikelytoreturnhome. Howeverinmanycasestheclashofdefinitionsisquitestark.UndertheDEEWR "definition"astudentwhoisseriousabouttheirstudy,buthasnointentionof returninghome,mightstillbeconsidereda"genuinestudent".FromtheDIACpoint ofviewastudentwhoisnotreallyseriousabouttheirstudiesbutwhoislikelyto returnhomemightstillberegardedasa"genuinestudent".InpracticeDIAChas usedthecriterionof"genuinestudent"asasurrogatemeasureforwhatshouldbe therealcriterion,namelywhethertheapplicantisagenuinetemporaryentrant. NotonlydoesthecurrentDIACsystemintroducecriteriawhichseemtobemoreof aneducationalissuethanamigrationissue,butthewholeregulationappearstobe backtofront.Insteadofbeginningwithawholerangeoftechnicalcriterialikethe availabilityoffunds,thelevelofEnglishproficiencyandtheprocurementofhealth insurance,itwouldmakemuchmoresensetomirrorthetouristvisasituationand startwiththebasiccriterionofwhetherornottheapplicantwillbeagenuine temporaryentrant.

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Partofthetestfordecidingwhetherornotanapplicantforastudentvisaisa genuinetemporaryentrantshouldbewhetherornottheyhaveanincentiveto returnhome.Forexample,theonlychildofawealthyChinesefamilywithavibrant andsuccessfulbusinesswouldhaveaverystrongincentivetoreturnhomeafter studyinginAustralia.Thatincentivewouldbeevenstrongerifthecoursethe applicantintendedtostudywasdirectlyrelatedtothefamilybusiness. Bycontrastanapplicantfromapersecutedminoritygroupinarelativelypoor country,andwhoseparentsaredeceased,wouldhaveverylittleincentivetoreturn home. Yetinbothoftheprecedingexamplesthestudentscouldbeequallygenuineabout theirstudies.Thatillustratestheproblemofusing"genuinestudent"asakey criterionfordecidingwhetherornottoissueastudentvisa.Theargumentthat occursbetweenDIACandDEEWRaboutwhatconstitutesa"genuinestudent" shouldberedundant.Itshouldnotbetheprincipalcriterionforassessingan applicantforastudentvisa. Similarly,theongoingissueofthequalityofindividualcoursesshouldalsonotbeat theheartofdecidingwhetherornotanapplicantshouldreceiveavisa.Thisisnotto saythatqualityisunimportant.Itiscertainlypreferablethatstudentsstudyathigh qualityprovidersratherthanatlowqualityproviders.TheintegrityoftheCRICOS registrationprocessisvital.Thenewnationalregulators,theTertiaryEducation QualityandStandardsAgency(TEQSA)andtheAustralianSkillsQualityAuthority (ASQA),willbecentraltoensuringthequalityofprovidersforbothdomesticand internationalstudents. Butthefactthataprospectivestudentisseekingtostudyataqualityeducation providerinnowayguaranteesthatthestudentwillreturnhomeonthecompletion ofthecourse.Indeedinsomecasesitcouldbethequalityofthecourseandthe costsassociatedwithdoingacourseofthatqualitythatwillactuallyreducethe incentiveforthestudenttoreturnhome.Considerthefollowingexample: AstudentcomestoAustraliatoundertakeatwoyearcourseinDentalTechnologyat aTAFEcollegeinNewSouthWales.Theindicativeannualcostsforattendingthis course,foranunaccompaniedstudent,willbealmost$37,000peryearassetoutin Table4.1below.

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Table4.1IndicativeAnnualCosts:DentalTechnologyCourse AnnualTuition $17,890 Materialscosts $300$1,000 Livingcosts $18,000 Airfare $1,500 HealthCover $420 VisaApplicationCharge $550 MedicalExams $300 EnglishLanguageTest $150$400 Total $37,000

Thetotalcashcostofundertakingthistwoyearcourseisinthevicinityof$74,000. Thatsalotofmoneyinanyonestermsbutifyoucomefromanotparticularly affluentfamilyinmanynonOECDcountriesitisahugeinvestment.Assumingthat thequalityishighitmightbeaveryworthwhilecoursefora"genuinestudent", internationalordomestic,toundertake.Butfromastudentvisaperspectivethereis amuchbiggerquestion:canthegraduatecommandasalarypremiumintheirhome countrythatwouldjustifytheexpenseofdoingthecourse?Therealityisthatwhile theremightbegoodwagesinAustraliaforsomeonewithaDentalTechnician qualification,itisprettyhardtoimagineanyoneincertainnonOECDcountries gettingthesortofsalarysupplementwhichwouldgoanywherenearjustifyingthe costofthestudy.Wherethenistheincentivetoreturnhome?Therealityisthat, onthefaceofit,doingthecourseandreturninghomejustdoesntmakeanysense. Ifyoulookatthesensiblecriterionofwhetherthereisanincentivetoreturnhome thendifferentstudentscouldhavedifferentoutcomesfromthesamecourse.A youngmancomingfromacountrywithmuchlowerwagesthanAustraliawouldfind italmostimpossibletoearnasalaryathometojustifytheexpenseofundertaking traininginchildcareatanAustraliancollege.Yetadifferentyoungmanfromthe samecountry,sentbyhisrichparentstodothesamecoursewithaviewtosetting upachainofwesternstylechildcarecentrestocaterfortheemergingmiddleclass inthatcountry,couldjustifytheexpense.Ofcourseassessingastudents seriousnessaboutreturninghomeshouldnotsimplyrestonthefinancialrelativities ofthecostofthecourseandthesalaryofgraduatesofthatcourseathome.There arelegitimatenonmaterialvalueswhichpeoplealsoputoncourses.Forexample,a visualartsstudentmightwellspendalotonaqualitycoursewithoutitleadingto anyapparentemploymentintheshorttermbutstillbeabsolutelycommittedto returninghome.Afinancialcostbenefitisnottheonlyelementtoconsider,norisit theprincipalelement.Itisbutoneofarangeofmeasurestotakeintoaccount.In theenditallcomesdowntowhetherornotitmakessensetogohomeafterdoing thecourse.Andifitdoesntmakesense,thenwhyshouldDIACbeissuingastudent visa?

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Soifwereorienttheassessmentcriteriatomakebettersense,whatshoulditlook like?Well,beforeincorporatingtheobjectivemeasureslikelevelofEnglishand proofoffunds,theremustbethetestofwhethertheapplicantwouldbea"genuine temporaryentrant".Anumberofsimple,straightforwardfactorscouldbetaken intoaccountwhenassessingthegenuinetemporaryentrantcriterion.Thesefactors mightbesetoutunderfivekeyheadings: Applicantscircumstancesintheirhomecountry Ifasimilarcourseisalreadyavailableinthehomecountry,doesthestudent havesoundreasonsfornotundertakingthestudythere? Allowingforanyreasonablemotivessuchaswantingtoexperiencea newculture,improvingEnglishandthevalueofanAustralian qualificationintheirhomelabourmarket.

Personalties(familyandcommunity). Economiccircumstancesoftheapplicantandtheirfamilyrelativetothehome countryandtoAustralia. Militaryservicecommitments. Politicalandcivilunrest.

ApplicantspotentialcircumstancesinAustralia ApplicantslinkswithAustralia,includinganystrongcommunityorfamilylinks whichcouldencourageoverstayorapplicationforaprotectionvisa. ApplicantsknowledgeoflivinginAustralia,thecourseandtheprovider.This couldincludeindependentresearchonlifeinAustralia,othercoursesand educationproviders.

Applicantsimmigrationhistory Previoustravel,compliancewithimmigrationlawsofAustraliaorother countries,previousvisaapplications/complianceaction.

Valueofcoursetoapplicantsfuture Isthestudentseekingtoundertakeacourseconsistentwithandappropriate totheircurrentlevelofeducation? Relevanceofthecoursetothestudentspastorproposedfutureemployment eitherintheirhomecountryorathirdcountry.

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Remunerationtheapplicantcouldexpecttoreceiveinthehomecountry comparedwithAustraliausingthequalificationstobegainedfromthe proposedcourseofstudy.Thisisobviouslynotsorelevantforschoolor ELICOSstudents.

Backgroundintelligence Informationinstatistical,intelligenceandanalysisreportsonmigrationfraud andimmigrationcompliancecompiledbyDIAC. Thesefactorswouldneedtobestronglyunderpinnedbyadvicetodecisionmakers onhowtointerpretandadministerthem.Thisadviceshouldemphasisethatthey arenot"passorfail"criteria,andthecreationof"checklists"basedonthemwould needtobediscouraged.Rather,theyarecomponentswhichshouldbeconsidered inreachingajudgementwhethertheapplicantmetordidnotmeetthegenuine temporaryentrantcriterion.Forexample,itisfeasiblethatsometiestocommunity inAustraliamighthelpdemonstratethatanapplicantwasgenuinewhereastiesofa differenttypemighthelpdemonstratetheopposite. Thefirstitemofbusinessinassessingastudentvisaapplicationshouldbewhether theapplicantisagenuinetemporaryentrant.Butthisdoesnotmeanthatthe conceptofgenuinestudentisnotalsoimportant.Indeeditshouldbeacriticalissue tolookatwhenassessingastudentvisaapplicant.Asuccessfulapplicantwillneed tomeetbothcriteria.However,the"genuinestudent"criterionshouldnowfocus onintentiontostudyratherthanitbeingasurrogatemeasureforwhetherornot theapplicantwillreturnhome.Whileitshouldbeessentialtoestablishthatthe applicantwillbeagenuinetemporaryentrantthatwouldnotbesufficienttoobtain astudentvisa.Apersonwhointendstoonlyresidetemporarilybutwhoplansto workillegallyinsteadofattendinganeducationcourseshouldnotqualifyfora studentvisa.Asuccessfulapplicantforastudentvisashouldbebothagenuine temporaryentrantandagenuinestudent. Recommendation1 Thatanewelementbeintroducedintotheeligibilitycriteriaforastudentvisa.That newcriterionwillbetoassesswhethertheapplicantisagenuinetemporary entrant.Thisnewcriterionshouldbethefirsttobeconsideredinassessingany applicationforastudentvisa. Recommendation2 Asuccessfulapplicantmustbebothagenuinetemporaryentrantandagenuine student.

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 THISPAGEINTENTIONALLYLEFTBLANK

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Chapter5 TheUniversities
OneoftheprincipaloutcomesofthisReviewistorecommendimprovedvisaaccess arrangementsforAustralianuniversities.Acentralconclusionisthatouruniversities shouldbetreateddifferentlytotherestoftheinternationaleducationsector.Thisis notbasedonanypersonalwhimorphilosophicalpremise.Nordoesitresultfrom thefactthatmanyyearsagoIstudiedatanAustralianuniversity.Isubsequently taughtatanumberofTAFEcollegesandseveralmembersofmyfamilyhave receivedexcellenteducationsfromVETproviders.IntheparagraphsbelowIwillset outanumberofsoundpublicpolicyreasonswhyIbelievethattheuniversitiesneed tobetreateddifferently. First,itisworthconsideringthecontextinwhichAustralianuniversitiescurrently operate.AllAustralianuniversitiesarenowheavilydependentuponinternational students.SomeofAustralia'soldestuniversitiesbelongtoanassociationcalledthe GroupofEight.AsTable5.1belowindicatesapproximatelyonequarterofall studentsstudyingattheGroupofEightuniversitiesareinternationalstudents.
Table5.1GroupofEightUniversitiesStudentLoad2009 University AustralianNationalUniversity MonashUniversity TheUniversityofAdelaide TheUniversityofMelbourne TheUniversityofNewSouthWales TheUniversityofSydney TheUniversityofQueensland TheUniversityofWesternAustralia Domestic International* Percentintnl 13,309 4,270 24 38,811 21,114 35 15,945 6,229 28 33,443 12,005 26 34,883 11,487 25 38,463 11,969 24 31,757 8,826 22 16,770 5,137 23

Source:Table2.10DEEWRhighereducationstatistics *InternationalincludesinternationalstudentsinAustraliaandinternationalstudentsstudyingoffshore.Inmostcasesthis isonlyafewhundredbutMonashhasverysubstantialnumbersatcampusesinMalaysiaandSouthAfrica.

Frankly,IwassurprisedinthecourseofthisReviewtodiscoverhowhighthat percentageis.IsuspectthatmanyotherAustralianswouldalsobesurprised.The percentagevariesfromuniversitytouniversity.Someareconsiderablylowerthan theGroupofEightaverage;someareconsiderablyhigher.Whatiscommontoallof theAustralianuniversitiesisthattheyarenowdependentuponrecruiting internationalstudents.Therevenuefrominternationalstudentsisextremely importanttotheuniversities. Generally,thefeepaidbyanindividualinternationalstudentisdifferentthanthe AustralianGovernmentandstudentcontributionforadomesticstudentundertaking thesamecourse.Table5.2belowsetsoutsomecomparisonsfordifferentcourses. Theactualfigurespaidbyinternationalstudentsvaryfromcoursetocourseand universitytouniversity.Thetablepicksthefeesfromarangeofdifferent universitiestogiveaflavourratherthandetailedstatisticalanalysis.

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Table5.2FundingreceivedbyhighereducationProvider($'000) DegreeType Domestic* BachelorofArts 43 BachelorofCommerce 33 BachelorofCivilEngineering 93 BachelorofInformationTechnology 50 BachelorofMedicine/BachelorofSurgery 143 BachelorofScience 69
*Studentsareassumedtoonlyundertakeunitsinthesamefundingclusterastheoverallcourse *BachelorofArtsisassumedtobeinsocialstudies. Source:DEEWRandCRICOS

International 61 80 82 52 205 69

Generallytheuniversitiesreceivemoremoneyforaninternationalstudentthana domesticstudent.Significantlythefeedifferentialisparticularlylargeinthecourse whichisextremelypopularwithinternationalstudentstheBachelorofCommerce. Universitiesusethefeesfrominternationalstudentstohelpsubsidisetheirgeneral operations.Withoutthatincometheywouldhavetoeitherreducetheirlevelof researchorreducetheirlevelofservicestoAustralianstudents,mostlikelyboth. TheonlywaytoavoidsuchreductionswouldbeforAustraliantaxpayersto"make uptheshortfall". Butitisnotjustaboutmoney.Quiterightlytheuniversitiesarguethatthereare otherimportantbenefitsfrominternationalstudents.Theybringadiversityof cultureandbackgroundwhichenrichescampuslifeforallstudents.International studentsexposedomesticstudentstodifferentculturalexperiencesandfriendships arecreatedacrossnationalboundaries.Thesepeopletopeoplelinkscanhavean enduringvalueforAustraliaovermanydecades.Thereareongoingbenefitsin trade,thepoliticalrelationshipsbetweencountries,andresearchcollaboration.At itsbest,apositiveexperienceofstudyingherecreateshundredsofthousandsof unofficialambassadorsforAustralia. Ofcourse,manyofthesepointsarealsotrueforotherhighereducationproviders andfortheVETsector.Sowhatmakestheuniversitiesentitledtospecial treatment?Inmyopinionthereareseveralimportantfactors: 1. TheuniversitiesarethespearheadofAustralia'sinternationalreputationfor education.Itwastheuniversitieswhichfirstrecruitedinternationalstudents insubstantialnumbers.Moreimportantly,itistheuniversitieswhichareheld inthehighestregardbybothparentsandgovernmentsinthecountriesin whichAustraliaseekstorecruitinternationalstudents.Forexample,when parentsinChinaareconsideringspendingaverylargeamountofmoneyto sendachildtostudyinAustraliatheirfocusisoverwhelminglyonsending themtouniversity.MydiscussionswithrepresentativesofboththeIndianand ChineseGovernmentsreinforcedthisview.Universitiesarecentralto maintainingAustraliasglobaleducation"brand"asoneofquality.

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2.

QualityishighrightacrosstheentireAustralianuniversitysector.Thereisa greatdealofhealthyrivalrybetweentheAustralianuniversities.The universitiesoftenargueamongstthemselvesaboutrelativequalityand individualuniversitiesarequicktotrumpetthenewswhentheyreceivea higherrankingonaninternationallistthansomeoftheircompetitors.But notwithstandingthisrivalrythereisageneral,andjustifiable,agreementthat thequalityofeducationatAustralianuniversitiesisuniversallyhigh. Governmentsandregulatorstraditionallytreatuniversitiesdifferentlyto othereducationproviders.EveryuniversityinAustraliahasitsoperations facilitatedbylegislation.Thisistrueofboththepublicandtheprivate universities.Theyhaveaspecialstatusconferreduponthembyparliaments. Havingyourownactofparliamentcertainlyconveysthatauniversityis consideredsomethingspecial. Alleducationprovidersneedtoberegisteredbytheappropriateregulatory authorities.Universitiesarenoexception.Butmostprovidersthenneed approvaltoofferindividualcourses.BycontrasteveryAustralianuniversityis empoweredtoitselfaccreditindividualcourses.IfanAustralianuniversity wantstoofferanewdegreesayaBachelorDegreeinCommunications thentheuniversityhasthedelegatedauthoritytodeterminethatthisisa properlyaccreditedcourse.Bycontrastalmostallothereducationproviders wishingtoestablishasimilarcoursewouldneedspecificapprovalfromthe regulatorybody.Thisselfaccreditingpowerofuniversitieswasrecently affirmedbytheAustralianParliamentinthelegislationestablishingthenew nationalregulator,TEQSA.

3.

4.

Highqualityispreservedbykeepingthenumberofinstitutionsrecognisedas universitiesrelativelysmall.Australiacurrentlyhas39universities.Two foreigninstitutions,CarnegieMellonUniversityandUniversityCollegeLondon, alsohavesmalloperationsbasedinAdelaide.Itisverydifficulttobecomea universityinAustralia.Whilethereareregulatorycriteriathatmustbemetto gainregistrationasahighereducationproviderthesearemuchless demandingthantherequirementstobecomeauniversity.Evenareputable universityfromanothercountrycannotsetupinAustraliaasauniversity withoutmeetingarangeofveryrigorousanddemandingcriteria.Inmany countries,includingtheUS,therearefewerbarrierstousingthetitle "University".Infactsomeworldrenownededucationalinstitutionsdonot evenhave"University"intheirtitles.ButinAustraliatherighttocallan educationproviderauniversityisbothveryvaluableandjealouslyguarded. OvertimetherewillbesomenewuniversitiesinAustralia.Someofthemwill bedomesticandsomeothersmightbeoverseasuniversitieswhichsetup here.Butitwillbealmostimpossibleforonetobecreatedwithoutthevery highstandardsthatarecommontotheexistingAustralianuniversities.

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5.

6.

7.

Becauseitisrelativelysmall,theuniversitysectorismucheasiertomonitor andregulate.Givensomeunfortunatepasthistory,DIACisunderstandably concernedaboutthepotentialadverseconsequencesofrelaxingvisacontrols. Itisnotaneasythingtoaskthemtoembraceasystemwherecertain providerstakemoreresponsibilityforthebehaviouroftheirinternational studentsinreturnforgreatercertaintyandspeedinobtainingvisasfortheir students.Obviouslythesmallerthatgroupisthentheeasieritistomonitor andtointeractwith.Ifthingsdogo"offtherails"DIACshouldbeableto respondquicklyandeffectivelyinawaythatwouldnotbepossibleifabroader groupofeducationproviderswasinvolved.Althoughthenumbersateach universityarequitelargethereareonly39ofthem.Bycontrast,in2010there were730otherhighereducationandVETprovidersregisteredtoprovide coursesforinternationalstudents. Theuniversitysectorisverystable.Australiasuniversitiesarewidely regardedaswellmanagedinstitutionswithhighlevelsofaccountabilityand transparency.Itishardtoimagineanycircumstancesunderwhichauniversity wouldgointoliquidationorclosedown.Inrecentyearstherehavebeena numberofproviderswhichhavecollapsed.Andthereareotherswhichhave comeveryclosetocollapsing.Significantly,notoneofthemhasbeena university. AustraliantaxpayershaveahugefinancialstakeinAustralianuniversities. AllbuttwoAustralianuniversities,BondandNotreDame,receivethemajority oftheirfundingfromtheAustraliantaxpayerthroughaccessto CommonwealthSupportedPlaces,capitalandresearchfunds.Bondand NotreDamereceivesomegovernmentfundingalthoughthemajorityoftheir incomecomesfromothersources.Themissionoftheseuniversitiesisto createqualitypubliceducationratherthangenerateaprivateprofit.These institutionsarefundedbythebroadAustraliancommunityandthereareclear publicpolicyreasonsfortreatingthemdifferentlyforthisreasonalone.As pointedoutearlierifthequalityofAustralia'suniversitiesistobemaintained, thenanyshortfalloffundsresultingfromareductioninthenumbersof internationalstudentswillpotentiallybeaburdenforAustraliantaxpayers.

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8.

9.

Internationalstudentsgenerallystaylongerinauniversitycoursethanwith othereducationalproviders.Anundergraduatedegreenormallytakes betweenthreeandfouryearsdependingonthecourse(thoughsomeareeven longer).AMastersbycourseworkisgenerallyshorter18monthstotwo yearswhileaPhDisusuallyinthethreetofouryearrange.Many internationalstudentsalsoarerequiredbytheiruniversityproviderto undertakeafoundationcourseand/orfurthertraininginEnglishlanguage beforecommencingatuniversity.Thiscanfurtherincreasethelengthof study.Becausetheaverageuniversitystudentstudiesforalongerperiodthan theaverageVETstudent,thepositivebenefitstotheeconomyare considerablylargerfortheuniversitysector.Inapaperpreparedforthe AustralianTechnologyNetworkofUniversities(ATN)theauthorspointoutthat in2009internationalhighereducationaccountedfor32percentofall internationalstudentsbutrepresented57.5percentofallrevenuesfrom internationalstudents.Thepapersuggestedthatahighereducationstudent studyingonshoregeneratedalmost$51,000fortheAustralianeconomyin comparisontoaVETstudentwhogenerated$21,000. Overalluniversitystudentshaveproventobearelativelylowriskfroma migrationintegrityperspective.Universitystudentspresentaverylowrisk. Forexample,thegrantratein200910forstudentvisaapplicantsfor Australianuniversitieswasextremelyhigh(97.3percent).Thiscompares favourablywiththatoftheSchoolssector,89.5percent,ELICOS,91.8percent andVET,75.9percent.Inotherwords,underthecurrentarrangementsDIAC grantsalmostallofthevisaapplicationstostudyatanAustralianuniversity. Butinfartoomanycasesitdoessoslowly.

Whentakenasawholethepreviousninecriteriaprovideastrongcasefortreating Australianuniversitiesdifferentlytoothereducationproviders.Thatisnottosay thattherearenothighqualitynonuniversityhighereducationproviders.There clearlyare.SotooarethereunquestionablysomeveryhighqualityVETprovidersin boththepublicandtheprivatesectors.Butnoeducationprovider,otherthanan Australianuniversity,fitsallofthecriteriasetoutabove.Thisdoesnotmeanthat nonuniversityhighereducationprovidersshouldreceivepoortreatment.Quality providersinanypartofthesectorshouldcontinuetobesupportedsolongasdoing sodoesnotundermineAustralia'smigrationcontrols.

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FromaclearpublicpolicypointofviewIbelievetherecommendedchangesforthe universitysectorarejustifiable.Thesechangesarealsoessentialforthelongterm viabilityofthatsectorandthereforeverymuchintheinterestsofAustralian taxpayers.Naturallytherearesomewhowillquibbleaboutthespecialtreatment giventouniversities.However,governmentsofallpoliticalpersuasionsregularly givespecialtreatmenttodifferentgroupswhentheybelieveitisgoodpublicpolicy. Forexamplethereisadifferenceinhowthosefinancialinstitutionsclassifiedas banksaretreatedcomparedtootherfinancialinstitutions.Bothsetsoffinancial intuitionsaresubjecttoanationalregulatoryframeworkbutthebanksaretreated differently.Theyhavegreaterstatus,andgreaterprivileges.Butwiththatcomes additionalresponsibilities.Thisofcourseisanalogoustothesituationofthe universitiesandotherhighereducationproviders. Norshouldtherebeanyconcernsthatapublicpolicydecisiontoconfersome additionalbenefits,alongwithadditionalresponsibilities,ontheuniversitysector infringesanycompetitionprinciples.Forastartthebenefitswouldgotopublicand privateuniversitiesalikesotheconceptof"competitiveneutrality"isembraced. Indeedtheprivatelyowneduniversitieswillhaveaccesstothesebenefitswhilethe governmentownedTAFEswillnot.Soitwouldbehardtodrawanyinferencethat publiclyownedinstitutionsarebeingadvantagedoverprivatelyownedones. Intermsofbroadercompetitionpolicynouniversityisbeingadvantagedbythese proposalscomparedtoanyotheruniversity.Certainlyuniversitiesareadvantaged overnonuniversitiesbutthecategoryofuniversityisnota"closedshop".Entryto thetitle"University"isnotrestrictedbyquota.Itisopentoeachandallentrants thatmeetthelegislatedcriteriaforthistitle.Anyorganisationwhichachievesthe thresholdsestablishedinthepublicinterestbygovernmentmayseektoacquirea universitytitle.Thetitlecanbeacquiredbybothpublicandprivateinstitutions.The factthatitsahardtitletoearndoesntunderminetheprinciplesofcompetition. Quitethecontrary,itmakestheconferringofadditionalbenefitsonthose institutionswhichmeettherigorousstandardstobecomeauniversity,allthemore justifiable. Naturallythoseeducationproviderswhodonotalsoreceivethebenefitsproposed fortheuniversitysectorwillask:whynotmetoo?Butthereisaclearpublicpolicy justification,indeedataxpayerimperative,totreattheuniversitiesinadifferent way. So,howmuchtroublearetheuniversitiesinifoverallenrolmentfiguresforthemare stillrising,albeitonlyslightly?Theansweristhattheyareinserioustroublebecause ofdecliningnewenrolments(or"commencements"tousethetechnicalterm).If studentsenrolforathreeorfouryearcoursethenitcantakeawhilefordeclining numbersofcommencementstopulldowntheoverallnumbers.Foraperiodthe "goodyears"candisguisetheoverallimpactofamorerecentdropin commencements.

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Totaluniversityenrolmentshavegenerallyheldupsurprisinglywellinthefaceof somedirepredictionsfromresearchers,commentatorsandstakeholders.However, whilethesepredictionsmayhaveoverestimatedthespeedofthedeclineinhigher educationstudentnumberstheywerenotwrongwhenpredictingthatadeclinewill happen. Intheyearsuptoendof2010highereducationenrolmentscontinuedtoincrease. AndinthefourmonthstotheendofApril2011theyhavecontinuedtoincrease. Buttheywillalmostcertainlybeimpactedinthefutureduetoseveredeclinesinthe numberofstudentsundertakingEnglishlanguagetraining,foundationcoursesand someVETcourses.Ifthenumbersaredramaticallydowninthecoursesthatfeed intouniversitycoursesthenitisreasonabletoassumethatthenumberofstudents whowilltransitionfromthesecoursesintohighereducationwillalsoseverely decline. Butitsnotjustthenumbersinthe"feeder"courseswhicharedown.New enrolments(commencements)directintouniversitycoursesalsonowappeartobe falling.Therehasbeena19percentdeclineinoffshorevisagrantsforhigher education(predominatelyuniversities)inthesixmonthstoApril2011when comparedwiththesameperiodin2010.Thissuggeststhataseriousdeclineinthe numberofcommencingstudentsisalmostuponus. TheATNpaperreferencedaboveoutlinedthreepossiblescenarios: aninitialdropof10percentfollowedbytwoyearsofstablenumbers; adeclineby20percenteachyearforthreeyears;and adeclineof35percentfollowedbytwoyearsofstablenumbers. MydiscussionswithavarietyofstakeholderssuggestthatwhiletheATNpapermay haveoverestimatedthespeedwithwhichthehighereducationsectorwould decline;itisabsolutelycorrectinpointingoutthatthenumbersofinternational studentsenteringhighereducationwilldecline.Thiswillimpactinstitutions, communitiesandAustraliamorebroadly.Predictionisinherentlydangerousandlike mostofusIamonlygiftedwithperfecthindsight.HoweverIaminclinedtoaccept theargumentsofthosewhosuggestthatbytheendof2011Australiacouldseea 5percentdeclineininternationalhighereducationstudentsover2010numbers.By theendof2012thenumberscouldbedownby20percentonthe2010figures.

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Whatwouldthatmean? Bytheendof2012Australiacouldseeadeclineofalmost50,000higher educationstudentswhencomparedtotheendof2010. Thenumbersofinternationalstudentsinthehighereducationsectorwould continuetodeclineassmallercohortsmovethroughthesystem. Employmentandeconomicactivityintheuniversitysectorandthoseservice providerssupportinginternationalstudentsinAustraliawilldecline.The contributionofinternationaleducationtobothAustraliasimmediateand longertermeconomywillfall. Intheabsenceofmeasurestosupportouruniversities,furtherdeclinesare likely.

Onthebasisofthedataoutlinedabove,itwilltakeaconcertedeffort,andseveral years,togettheuniversitiesbacktotheirpreviousposition.Butgiventhe importanceoftheuniversitysectorandtheseriouscompetitionthatitfacesfrom competitornations,Australiawillneedtodomorethanithasinthepastjusttostay onlevelterms. Processingtimes OneoftheseriousproblemswhichAustralianuniversitiesfaceintryingtobe competitivegloballyistheperceptionofslowprocessingtimesforvisaapplications. ThroughoutthecourseoftheReviewthereweremanycomplaintsaboutprocessing times,especiallyfromuniversitiesandagentsactingonbehalfofuniversities. However,itisimportanttorecognisethatindividualagentsandindividualstudents canhavequitedifferentexperiences.Andthecircumstancesarenotthesameinall countries.AspartoftheReviewIvisitedChina,IndiaandMalaysiaandmetwith groupsofagentsineachcountry.Thesatisfactionlevelwasmuchhigherwiththe Malaysianagentsthanitwaswiththosefromtheothertwocountries. Arecentsurvey(asyetunpublished)byAEIalsoshowsmarkeddifferencesbetween countries.Australiawasrankedasbeingthefastestcountryforprocessingstudent visasbyIndonesianeducationagents.KoreaneducationagentsrankedAustraliaas thesecondfastestcountry(behindNewZealand).ButChineseeducationagents rankedAustraliaasthesecondslowestcountry(behindCanada).Chineseeducation agentsrankedtheUSasthefastestcountry.Thedifferencesinexperiencesbetween countriesaresignificant.ItisimportanttorecognisethatAustraliaisperceivedtobe relativelyspeedyinanumberofmarkets.Unfortunatelytheworstperceptions aboutvisaprocessingtimesareinAustraliasbiggestmarket,China.

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SomeoftheDIACproceduresdoappeartomakeprocessingtimesquiteslow. However,sometimestheproblemisnotDIACbutthefactthattheapplicanthasnot putinacompleteapplication.Forexample,anapplicantmightnothavesubmitted sufficientfinancialdocumentation.Inthosecircumstances,DIACgivestheapplicant theopportunitytoprovideadditionalinformationwhichdelaysprocessingthe application.Also,astheAEIunpublishedsurveymentionedabovepointsout,the relevanttimeisnotsimplythetimetakentoprocessthevisa.Differentcountries havevaryingmixesbetweenhowmuchisdonebytheeducationproviderandhow muchisdonebythevisaauthorities.ForexampleintheUStheuniversitiesrequire considerableinformationaboutthefinancialcircumstancesoftheapplicantlong beforeavisaapplicationissubmitted.Bycontrast,inAustraliathisinformationis gatheredbyDIAConcethevisaapplicationissubmitted.Itisnotreallyfairto comparethetwovisaprocessingtimesinisolation.Amorevalidcomparisonwould involvelookingatthecompletecyclefromfirstapplyingtoaninstitutionthroughto applyingforandbeinggrantedastudentvisa. Butevenallowingforalloftheprecedingcaveatsitisalsotruethatasignificant numberofapplicationsareprocessedslowerforAustraliathanisthecasewith competitorcountries.Slowprocessingtimesarenotjustanirritation.Theycan haveprofoundeffectsonwhetherornotastudentactuallydoescometoAustralia. Beingrealistic,anAustralianuniversityisnottheonlychoice,sometimesnoteven thefirstchoice,formanyinternationalstudents.Soifprocessingtimesareslower forastudentvisatocometoAustralia,thatcanhaveasignificantimpactonwhether astudentcomestoAustraliaorendsupinoneofourcompetitorcountries.Even justaperceptionthatAustralianprocessingtimesareslowerthanothercountries canprofoundlyimpactstudentchoice.Thisisparticularlyaproblemforuniversities becauseofthedifferenttimingoftheacademicyearinthenorthernandsouthern hemispheres. OtherthanNewZealand,ourmaintraditionalcompetitorsareCanada,theUKand theUS.Thosecountriesareallinthenorthernhemisphereasaremostofthe countriesfromwhichAustralianuniversitiesrecruitinternationalstudents.Thegap betweentheendofthefinalyearofhighschoolandthecommencementof universitystudiesismuchshorterforuniversitiesinthesouthernhemisphere comparedtothoseinthenorthernhemisphere.Asimilarsituationexistsfor studentscompletingtheirundergraduatedegreesintheirhomecountryand planningtoproceedtoaMastersdegreeoverseas.Everycountryneedstobe efficientwithitsvisaprocessingbutAustralianeedstobeespeciallyquick. Unfortunatelyourreputationinsomekeycountriesisforbeingslow.

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WhilevisitingChinaImetanumberofstudentswhosevisaapprovalscamethrough toolateforthemtocommenceacourseatanAustralianuniversityatthetimethey hadplanned.Someofthemhadintendedtostudyattheundergraduatelevel;some werecandidatesforMastersbyCoursework;somewereintendingtocometo Australiaaspartofa2plus2program(pleaseseeChapter15foradiscussionof theseprograms).Insomecasesthedelayofavisacausedthestudentstodelaytheir studyinAustralia.Forothers,itculminatedinadecisiontostudyinadifferent country.Inallcasestheslowprocessingleadtofrustrationandannoyance.Even whenavisaapprovalcamethroughintime,butjustintime,therewasstilldistress. Notonlywastheretheanxietythattheapprovalmightnotcomethroughintime, buttheclosertheapprovalcomestothecommencementofthecoursethemore expensivetheairfare.Asanytravellerknows,theearlieryoubuythebetterthe priceusuallyis. Proposedimprovedstudentvisaarrangementsfortheuniversities Thefollowingpackageofmeasuresisdesignedtobothimproveprocessingtimes andhelpouruniversitiestobemorecompetitiveintheglobalmarketforstudents. Thesemeasuresgiveuniversitiessubstantialbenefits.Butwiththesebenefitscome greateraccountability.Takenasawholetheseproposalsdonotconstituteafree gift. Theproposedmeasuresplacegreatertrustintheuniversities.Ineffectitsaysthatif anAustralianuniversityselectsastudentthen,subjecttosomequalificationssetout below,DIACwilltakethatuniversityswordthatthestudentissuitable.Therefore universitiescanbeconfidentthattheirstudentswillhavetheirapplications processedquickly.Studentswillalsohaveapoststudyworkrightscomponent attached. However,ifinternationalstudentsataparticularuniversityhaveconsistentlypoor visarelatedoutcomesthenthatuniversityrunstheriskofgovernmentexcluding themfromthisspecialtreatment.Furtherdetailsaboutaccountabilityand responsibilityaresetoutlaterinthischapter. TherecommendedbenefitsforAustralianuniversitiesfallintotwobroadareasvisa processingandpoststudyworkrights.Theproposalsareasfollows: Visaprocessing Allstudentsinthecategoriessetoutbelow,irrespectiveoftheircountryoforigin butsubjecttotheprovisionsin(4),(5)and(6)shouldbetreatedasthoughtheyare allAL1.

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1.

2.

3.

4.

5. 6.

Thistreatmentshouldapplytothefollowinguniversitystudentapplicants: BachelorDegree; 2plus2(or3plus1)arrangementswithpartneruniversities;and MastersDegreebyCoursework. Thespecialtreatmentshouldnotapplyto: shortcourses; AssociateDegree; Graduatediploma; Graduatecertificate; DiplomaandAdvancedDiploma; nonawardcourses(exceptasprovidedforinRecommendation18);and thenonuniversitycoursesatthesixuniversitieswhicharedualsector (TAFEanduniversity). Thebenefitsshouldalsoapplytocourseswhichareexplicitlypackagedwithan eligibleuniversitycourseatthetimewhentheofferofuniversityenrolmentis made.ThismightincludeEnglishlanguage(ELICOS)and/orfoundationor pathwaycoursesincircumstanceswherenoncompliancebythestudentatany partofthepackagewouldberegardedasnoncompliancewiththeuniversity enrolment. Thegovernmentshouldcontinuetorequireappropriatehealthchecks,health insurance,character(predominantlycriminalrecord/connections)andsecurity checks. TheunderlyingDIACpowersinregardtoeveryindividualstudentapplication shouldcontinuetoexist.

DIACshouldalsoreservetherighttoexcludecertainhighriskgroupsfromthe streamlinedapproachforuniversityapplicants.Forexample,thegovernment mightwanttocarefullyassessallapplicantsfromapersecutedminoritygroup inaparticularcountry.Applicantsfromsuchagroupmighthaveahuge incentivetoapplyforprotectionvisasassoonastheyreachedAustralia.The governmentmayormaynotwishtotakesuchpeopleonhumanitarian groundsbutthatshouldbeaseparatedecisionandshouldnotgetmixedup withtheprocessofgrantingvisasforuniversitystudents. PostStudyWorkRights 7. AllgraduatesofanAustralianuniversityBachelordegree,whohavespentat leasttwoacademicyearsstudyingthatdegreeinAustralia,andwhohave compliedwiththeirvisaconditions,shouldreceivetwoyearsworkrights.

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8.

AllgraduatesofanAustralianuniversityMastersbyCourseworkdegree,who havestudiedthatdegreeinAustralia,andwhohavecompliedwiththeirvisa conditions,shouldreceivetwoyearsworkrightsonsuccessfulcompletionof theircourse. Thisshouldapplyirrespectiveofthenatureofthecourse(forexample whetheritbeArtsorEngineering)andnotbetiedtoworkinginanyparticular occupation. Themechanismfortakinguptheseworkrightsshouldbeadministrativelyvery simplewiththefollowingcomponents: theuniversitymustnotifythatthecoursehasbeensuccessfully completed.(Thiswillbeearlierthantheformalgraduationwhichcould bemanymonthsafterthecoursehasbeencompleted); DIACshouldnotundertakeanydetailed,timeconsuming,assessmentof theapplicant;and theschememustbeonewhichcanbemarketedbytheuniversitiesto prospectivestudentsasalmostguaranteeingpoststudyworkrights.

9.

10.

IdonotintendtolayoutdetailedprescriptionsastohowDIACcanbestimplement thisinitiative.FrommydiscussionswithDIACofficersIknowenoughtofeel confidentthat,shouldthegovernmentwishtoadoptmyrecommendations,then theycanbequicklyandrelativelyeasilyimplemented.However,Ialsoknowthat thereismorethanonewaytodosoandthatDIACismuchbetterplacedthanmeto designthemechanismwhichmeshesbestwithitsotherprograms,computer systemsandadministrativearrangements.DIACmightwanttocreateaseparate visaclassortheymightprefertomakeitasubclassofanexistingvisa(likethe subclass485visabutinthisinstancewithoutoccupationallimitations).Orthere mightbeanother,bettermechanism.Anynewarrangementmayormaynotinclude anadditionalfeeforapplicants.MostlikelyDIACwillrequireproofofongoing healthinsurance. Andnaturallythisnewpoststudyentitlementshouldbecancelledforanyonewhois notcomplyingwiththeconditionsoftheirvisa. Thereistherelatedissueofwhattransitionalarrangements,ifany,shouldbemade forstudentsalreadystudyingatAustralianuniversities.Ontheonehandtheyhave noentitlementsandwerenotpromisedanypoststudyworkrights.Ontheother handitwouldseemharshtoexcludesomeonewhohasjustcommencedafouryear degreeandwillgraduateatthesametimeasanewstudentwhostartsathreeyear coursenextyear.Withoutknowingthemechanismforimplementationofthis proposedinitiative,itisnotpracticaltoassesshowexistingstudentscouldbe incorporatedintothosearrangements.Ultimatelyanydecisionabouttransitional arrangementsisamatterforthegovernment.Iwouldhoweverurgethemtobeas generousaspossibletoexistingstudents.

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Alongwithprocessingtimes(andtherelatedissueofthecertaintyofobtaininga visa)poststudyworkrightswasthebiggestconcernraisedduringtheReview process.Itwasacommonthemeamonguniversities,studentsandprospective students,parents,agents,andemployers.Mostofourcompetitorcountriesofferan automaticperiodofpoststudyworkrightsforinternationalstudentswho successfullycompleteuniversitystudies.ThemainexceptionnowistheUKwhich recentlyrestricted,butnotabolished,thisentitlementduetoveryhighlevelsof unemploymentamongtheirownuniversitygraduates. Notunreasonablyinternationalstudentswouldliketogainsomepotential experienceinthecountrytheystudy.Thathasseveraladvantages.Justasan Australianuniversityeducationisagreatassetinternationally,sotooisAustralian workexperience.Forexample,aninternationalstudentwhocomestoAustraliato studyminingengineeringatanAustralianuniversityleaveswithaworldclass qualification.Butifthatstudentalsotakeshometwoyearsofexperienceworkingin theAustralianminingindustry,heorsheisevenmorevaluableintheirhome countryorathirdcountry. Itisimportanttorecognisethatinternationalstudentswhoreturnhomeafter studyinginAustralianeedtobecompetitiveinthejobmarketintheirowncountry. Theymustcompeteagainsttheirpeerswhograduatedfromtheirowncountry'sbest universities(oftenofveryhighquality)andgraduatesofuniversitiesinour competitorcountries.Soanypoststudypracticalexperienceobtainedoverseascan beagreatdifferentiatorforinternationalstudentswhencompetingforjobsintheir owncountry.Bycontrast,ifinternationalstudentswhostudyinAustraliadonot haveanoptionofpoststudyworkexperience,theyaredisadvantagedwhen competingintheirhomecountrywithstudentswhostudyintheUSandCanada. Thebenefitsofpoststudyworkexperienceapplytouniversitygraduatesirrespective oftheircourse.Itisnotconfinedmerelytothemoreoccupationallyoriented courses(likeEngineeringandAccounting)butalsoappliestothemoregeneric courses.AnAsianstudentwhostudiesArtswithamajorinCommunication,and whointendstoworkinpublicrelationsintheirhomecountry,ismuchmorevaluable iftheyhaveayearortwoofworkexperiencewithanAustralianpublicrelations firm. Thecurrentsubclass485visaisavailabletograduatesofuniversities,otherhigher educationandVETprovidersforpoststudywork.However,thisisrestrictedto thosegraduateswhonominateanoccupationontheSOLwhereAustraliapresently hasashortageofworkers.Notonlyisthisrestrictedtocertainoccupationsbutthe subclass485visaapplicationprocesshasasubstantialbacklogofapplicantswaiting tobeassessed.Ironicallyanyoneapplyingforasubclass485visawillreceivea bridgingvisawithfullworkrightsi.e.notrestrictedtotheoccupationsthatthe finalsubclass485visacoversasaninterimmeasure.Creatingaseparate arrangementforuniversitygraduatesremovesthemfromthepoolofpeople potentiallyapplyingforasubclass485visa.Thisshouldmakeiteasierandfasterto processotherapplicantsforsubclass485visasandsubstantiallyreducethetime peoplearespendingonbridgingvisas.

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Theproposeduniversitygraduatetwoyearworkrightisnotlinkedtoanyparticular occupation.Unlikethesubclass485visaitisnotdesignedtohelpmeetAustralia's skillshortage(thoughinsomecasesitmayhelp).Itiscertainlynotintendedto provideadefinedpathwaytomigration.However,underthenewGeneralSkilled Migration(GSM)rulestocomeintoeffectfrom1July2012;twoyearsofAustralian workexperiencecouldimprovethemigrationchancesofsomestudents.Iftheir qualificationsareinanoccupationcategorywhichAustraliamightsubsequentlyseek torecruitmigrantsfrom,thentheirAustralianworkexperiencewouldbeanasset. Buttherearenoguarantees. Inthecaseofemployers,theexistenceofalmostguaranteedpostgraduatework rightswouldgivethemadegreeofcertainty(twoyears)shouldtheychooseto recruitinternationalgraduatesofAustralianuniversities.Inparticularcasesthis wouldenableemployerstoidentifysuitablegraduatespriortothecompletionofthe course.Forexample,WesternAustralianminingcompanieswhichseemtohave analmostinsatiableneedforgraduateengineerscouldidentifysuitableapplicants intheirfinalyearofstudyknowingthattheinternationalstudentswouldalmost certainlyhaveatwoyearpoststudyworkvisa. InthoseoccupationswhereAustraliamightinthefuturewanttorecruitskilled migrants,atwoyearpoststudyworkvisagivesemployersanopportunityto"try beforeyoubuy".Itwouldenableemployerstohaveagoodlookathowsomeone functionswithintheAustralianworkplacebeforedecidingwhetherornottobegin thefairlycomplicatedprocessofsponsoringthatpersonformigration. However,whilethisproposednewgraduateworkrightsprogramcouldhave migrationbenefitsforsomeemployersandsomestudentsthatisnotitsmain function.Atitscore,thisinitiativewouldbeanadjuncttostudyatAustralian universities.ItlinksbacktotherecommendationsinChapter4aboutwhatshould bethefoundationstoneofthestudentvisasystem,namelyarequirementthatthe studentisinfactatemporaryresidentofAustralia. Ofcourse,thereisnocertaintythateveryinternationalstudentgraduatingfroman Australianuniversitywillexercisetheirpoststudyworkentitlement.Somewillbe keentoreturnhomeimmediately.Otherswillworkhereonlyuntilthatexperience helpsthemleverageafirmjobofferathomeorinathirdcountry.Unfortunately, somegraduateswillleavedisappointedthattheyhavebeenunabletofindasuitable jobthisisaproposalwhichfacilitatesavisanotanemploymentoffer.Andsome, hopefullyasmallminority,willspendaperiodoftimeinmenialworkwherethe Australianwageratesmightstillbehighcomparedtotheirhomecountry.

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Iwon'tpretendthattheproposedarrangementsforpostuniversitystudywork rightswillalwaysleadtoaperfectoutcome.Howevertherisksarerelativelysmall comparedtothebenefits.Moreover,beyondthequestionof:"whatwillhappenif wedothis?"istheequallyimportantquestion"whatwillhappenifwedon'tdo this"?Theabsenceofaclearlydefinedpoststudyworkrightsentitlementputs Australianuniversitiesataveryseriousdisadvantagecomparedtosomeofour majorcompetitorcountries.Inthepasttheabsenceofsuchanentitlementhasnot proventobeadramatichindrancetoAustralianuniversitiesrecruitinginternational students.Buttheworldhaschanged.Globalcompetitionforqualityinternational studentsisintensifyingandalmostcertainlywillcontinuetofurtherintensify. Allowingamoderateperiodofpoststudyworkrightswillbeessentialtoensuring theongoingviabilityofouruniversitiesinanincreasinglycompetitiveglobalmarket forstudents. AccountabilityandResponsibility Asmentionedearlier,theserecommendedsubstantialbenefitsforAustralian universitiesdonotconstituteafreegift.Theycomewithobligations.IfDIACisto effectivelytakethewordofauniversitythatitsstudentsarebonafide,thenthere mustbeacapacitytomonitoroutcomes.Ifaparticularuniversityrecruitssignificant numbersofstudentswhodonotcomplywiththeirvisarequirements,thenitwould befoolishforDIACtocontinuetogiveapplicantstothatuniversitythelighttouch andquickprocessingmentionedabove.Itwouldbeunfairtoholdanyuniversity liablefortheoutcomeofeachindividualstudent.However,iftherewasapatternof behaviourassociatedwithaparticularuniversitywhichunderminedtheintegrityof thestudentvisasystem;thenthatuniversitywouldnolongerbeentitledtoa streamlinedprocess.Removingauniversityfromthestreamlinedregimewould haveprofoundimplicationsforthatuniversitysrecruitment.Itwouldplacethat universityatamarketingdisadvantagecomparedtoitscompetitors.Evenmore importantlythepublicreputationoftheuniversitywouldbedamaged.Quiterightly Australianuniversitiesplacegreatstoreintheirreputationsandthepossibilityof havingthatcompromisedshouldbeagreatincentiveforgoodbehaviour.The ultimatepunishmentwouldbetoremoveauniversityfromthestreamlined processingsystem.Butthethreatofdoingsoisitselfamajorsanction.The possibilityofbeingplacedonapubliclyrevealed"watchlist"woulditselfbeastrong disincentiveagainstpoorbehaviour. Undertheseproposals,theuniversitieswouldgetthesamestreamlinedprocessing forstudentswhoseofferincludesapackageofafoundationcourse,anELICOS course,orboth.Itwouldnotmatterwhotheproviderofthatothercourseis.That mightbetheuniversityitself,arelatedprivateprovider,oracompletely independentoperator.Eitherwaythesamebenefitswouldapply.Howeverif studentsfromapackagedcoursehadparticularlypoorstudentvisaoutcomesthen theuniversitywouldbeheldaccountableinthesamewayasitwouldforitsown students.Ifprospectivestudentsaretoreceivethesamebenefitsasthoughthey werestudentsoftheuniversity,thentheuniversityshouldhavethesame responsibilities.

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DIACwillneedtodevelopaseriesofcriteriaonwhichtomonitorperformance,but theobviousstartingpointisthesamecriteriausedtodeterminetheAssessment Levels(ALs)forcountries: Rateofrefusalsofvisaapplications(nonfraud); Rateofrefusalsofvisaapplications(fraud); Rateofsubsequentapplicationsforprotectionvisas; Rateofsubsequentapplicationsforothervisas(egpartner,excluding protectionandskilledvisas); Rateofvisacancellationsfornoncompliance;and Overstayrate.

Therewouldalsoneedtobeanadditionalcriteriarelatedtotheextentofany downgradingfromacourse.Apotentialrortundertherecommendedmodelwould involvestudentsgainingentrytoAustraliaduetoanofferfromauniversitybutthen "jumpingship"toalessercourseoncetheyarriveinAustralia.Anapplicantforthe lessercoursewouldalmostcertainlyhaveattractedmuchmorescrutinyinthefirst instance,hencethevalueofinitiallyseekingtoenterviaauniversity. TheNewZealandimmigrationauthoritieshaveawonderfulexpressiontodescribe thisphenomenon.Theycallit"wakajumping"(apparentlynamedafterapracticeof jumpingfromonecanoetoanother). LaterinthisReportIraisethepossibilityofDIACreviewingthewholeALframework. Theframeworkformonitoringthebehaviourofthestudentcohortsatuniversities obviouslyneedstobeconsistentwithwhateveroverallframeworkDIACisusingat thetime.IntheshorttermthiswillbetheALcriteria.Ifthatframeworkisrefinedat somefuturedatethensotooshouldthecriteriaformonitoringtheuniversities. NotonlywillDIACneedtomonitorthevisacomplianceofstudentsatAustralian universities,butalsocommunicatedirectlywithuniversities.Ifthereareemerging problemswithstudentsattendingaparticularuniversity,thensomeoneseniorfrom DIACshouldcontactsomeoneseniorfromthatuniversityandtellthem.Whilethe onuswillbeonuniversitiestochoosetheirstudentswisely,DIACalsoshouldhavea responsibilitytoshareitsinformationaboutstudentvisacomplianceandpossible rortswiththeuniversities.AtpresentthecontactbetweenDIACandeducation providersisatbestminimal,moreoftennonexistent.Thereareseveralreasonsfor this.SuchcontactisnotausualpartoftheDIACbusinessandtheDIACculture. DIACofficersarealsowaryofsayingthingswhichcouldbeusedinpossiblelegal challenges.And,acrossthewholeinternationalsector,therearejustfartoomany providersforDIACtobeabletomanageaprogramofindividualcontact.However, becausetherecommendedstreamlinedapproachwillonlyapplyto39universities, sensiblecontactwithindividualuniversitiesshouldbemucheasiertodealwith.

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ItisintheinterestsofbothDIACandtheindividualuniversitiestohavearegular dialogueandshareinformation.IfDIAChasconcernsaboutstudentscomingfroma particularpartofaparticularcountryseekingtoattendaparticularuniversity,then theyshouldsharethoseconcernswiththeuniversity.Itisextremelyunlikelythat anyAustralianuniversitywoulddisregardthatsortofadvice,especiallyasthe sanctionsforunderminingtheintegrityofthestudentvisaschemewouldbeso serious.SimilarlyDIACshouldsharewithuniversitiesinformationwhichithasabout individualagentswhoareofconcern.DIACofficersatoverseaspostsgetapretty goodfeelforwhichagentsarereputableandwhicharemorepronetolesssavoury practices.IftheyareworriedaboutaparticularagentsbehaviourDIACshouldraise thiswiththeuniversityconcerned.TheproposalsinChapter12forenhancing integrityincludearequirementtoenterthenameofanyagentintothecentral recordofstudentinformation.MakingsuchanadjustmenttotheProvider RegistrationandInternationalStudentsManagementSystem(PRISMS)isan importantstart.Buttheinformationmustbeusedand,whererelevant,sharedwith universities,toimproveoutcomes. Theuniversitiesarenotperfect IhavegreatregardforthequalityandintegrityofAustralia's39universities.And therecommendationsofthischapteraredesignedtosupportandstrengthentheir positioninregardtorecruitinginternationalstudents.However,itwouldbenaiveto thinkthateverythingisperfectintermsoftheuniversities'treatmentoftheir currentinternationalstudents. Concernshavebeenraisedabouttheriskofuniversitiesadoptinglessrigorous academicstandardsforinternationalstudents.Thefinancialdependencewhich universitiesnowhaveonthefeesfrominternationalstudentscouldcreatepressure tosoftenentrystandardsandassessmentstandards.Thereisariskthatstandards mightbecompromisedtoensurebothinitialenrolmentandongoingenrolment(a failedfirstyearstudentisnotlikelytobeasourceofsecondyearfees).Afew academicshaveallegedthatthishasalreadyoccurredatsomeuniversities.While shorttermrevenuepressuresmightprovideaninformalincentiveforreducing standards,itisnotinthelongterminterestofouruniversities,orofthestudents themselves,todoso.Bothuniversitiesandthenewtertiaryeducationregulator, TEQSA,needtobevigilanttoensurethatthehighqualityandstandardsof Australianuniversitiesarenotundermined.

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Therearealsogenuineconcernsamongbothinternationalanddomesticstudents aboutwhatistherightbalanceofstudentsfromeachsource.Howmany internationalstudentsaretoomany?Ifaparticularcoursebecomesdominatedby studentsfromoneoverseascountry,thenhowmuchofanAustralianeducational experiencearethosestudentsreallygetting?Andwhatimplicationsdoesthathave forthenatureoftheeducationwhichhomegrownAustralianstudentsarereceiving atthesameprovider?Undoubtedlytheeducationexperienceofdomesticstudents isenrichedbytheadditionofoverseasstudents.Butwhatifthedomesticstudents endupasatinyminorityintheclassroomintheirowncountry?Wheninternational studentsconstitutearound25percentofenrolmentsatanAustralianuniversitythis issueatfirstlookseemsmanageable.However,becauseinternationalstudents currentlyaredisproportionatelyclusteredincertaincourseslikebusinessand accountingthepercentagesinthosecoursesofstudentsfromasingleoverseas countrycanbehuge.Thisisaproblemforboththeinternationalanddomestic students. InShanghaiIrecentlymetsomenewgraduatesfromanAustraliancapitalcity university.Theyweregenerallyverypositiveabouttheirexperience.Buttheone commoncomplainttheyhadwasthat"thereweretoomanyChinesestudents"in theircourse.SomeofthosestudentsreportedthattheirlevelofEnglishhadactually declinedwhiletheywerestudyinginAustralia.Theyhadspentmuchoftheirtime outsidetheclassroomspeakingChinesewithotherChinesestudents.Thisisareal problembutnotonewhichiseasytoremedy.Inthereversesituationitwouldnot besurprisingtofindagroupofAustralianstudentsinShanghaitendingtospenda lotoftimetogetherspeakingEnglish. Universitiesdoneedtoaddresstheseissues.Theyarecriticaltoensuringahigh qualityeducationalexperienceforbothinternationalanddomesticstudents.Over timethesituationshouldimprove.Tosomeextenttheproblemsmightbeself limiting.Ifinternationalstudentsfindacourseataparticularuniversitycontainstoo manypeoplefromtheirowncountry,thiswillaffecttheirchoicesofwheretoenrol. Sotoo,Australianstudentswill"votewiththeirfeet"iftheyfeelthattheir educationalexperienceisbeingcompromisedataparticularuniversity.Ultimately, themostimportantthinganyAustralianuniversityhasisitsreputation.Inthelong runtheirselfinterestinprotectingtheirreputationswillimpactonthebehaviourof universities.

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Itispossible,thoughunlikely,thattheimplementationoftherecommendationsin thisReportwillleadtoadramaticriseinthenumberofinternationalstudentsat Australianuniversities.Onceagaintheimportanceofprotectingeachuniversity's reputationwillbeanimportantfactorinpreventingthis.Forexample,itisunlikely thattheuniversitiesintheGroupofEightwillwanttogomuchabovetheircurrent percentageofaround25percent.Todosowouldruntheriskofdetractingfrom theirexistingreputationsbuiltupovermanydecades.Whattheymightwanttodo ischangethemixofinternationalstudentsandenrolmoreMastersandfewer undergraduatesbutthatisuptothem.Iamhopefulthatthebenefitsthese recommendationsprovide,bothintermsofprocessingvisasandpoststudywork rights,willgivetheuniversitiesahighdegreeofconfidencethattheycanrecruitthe numbersofstudentstheyneed.Beingconfidenttheywillbemorecompetitivein theinternationalmarketforqualitystudents,shouldmaketheuniversitiesless pronetograbmarginalapplicants.Iftheyhavemorecertaintythentheycanbe moreselectiveaboutwhichindividualprospectivestudentstheyofferenrolments. Butifindividualuniversitiesdorecruitamassiveadditionalnumberofinternational studentstothedetrimentofdomesticstudents,therearerelativelyeasywaysto remedythat.Afterall,37ofthe39arepublicuniversities;we(theAustralian taxpayers)substantiallyfundtheiroperations.TheAustralianGovernmentcan (should,andhopefullywould)intervene.Thereareavarietyofwaystodothis.For exampleTEQSAhasthepowertocapthenumberofinternationalstudentsatan individualuniversity.Indeeditcansuspendanentirecoursefromtakingany internationalstudents.And,ifallelsefails,thegovernmentcouldsimplylimitthe numberofstudentvisasavailabletoindividualuniversities. Recommendation3streamlinedvisaprocessingforuniversities 3.1 Thatallstudentsinthecategoriessetoutbelow,irrespectiveoftheircountry oforiginbutsubjecttotheprovisionsin3.5,3.6and3.7shouldbetreatedas thoughtheyareallAL1. 3.2 Thistreatmentshouldapplytothefollowinguniversitystudentapplicants: BachelorDegree; 2plus2(or3plus1)arrangementswithpartneruniversities; MastersDegreebyCoursework. 3.3 Thespecialtreatmentshouldnotapplyto: shortcourses; AssociateDegree; GraduateDiploma; GraduateCertificate; DiplomaandAdvancedDiploma; nonawardcourses(exceptasprovidedforinRecommendation18); thenonuniversitycoursesatthesixuniversitieswhicharedualsector (VETanduniversity).

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Thebenefitsshouldalsoapplytocourseswhichareexplicitlypackagedwith aneligibleuniversitycourseatthetimewhentheofferofuniversity enrolmentismade.ThismightincludeEnglishlanguage(ELICOS)and/or foundationorpathwaycoursesincircumstanceswherenoncomplianceby thestudentatanypartofthepackagewouldberegardedasnoncompliance withtheuniversityenrolment. 3.5 Thegovernmentshouldcontinuetorequireappropriatehealthchecks, healthinsurance,character(predominantlycriminalrecord/connections)and securitychecks. 3.6 TheunderlyingDIACpowersinregardtoeveryindividualstudentapplication shouldcontinuetoexist. 3.7 Thegovernmentshouldalsoreservetherighttoexcludecertainhighrisk groupsfromthestreamlinedapproachforuniversityapplicants.For example,thegovernmentmightwanttocarefullyassessallapplicantsfroma persecutedminoritygroupinaparticularcountry.Applicantsfromsucha groupmighthaveahugeincentivetoapplyforprotectionvisasassoonas theyreachedAustralia.TheAustralianGovernmentmayormaynotwishto takesuchpeopleonhumanitariangroundsbutthatshouldbeaseparate decisionandshouldnotgetmixedupwiththeprocessofgrantingvisasfor universitystudents. Recommendation4PostStudyWorkRights 4.1 AllgraduatesofanAustralianuniversityBachelordegree,whohavespentat leasttwoacademicyearsstudyingthatdegreeinAustralia,andcomplied withtheirvisaconditions,shouldreceivetwoyearsworkrights. 4.2 AllgraduatesofanAustralianuniversityMastersbyCourseworkdegree,who havestudiedthatdegreeinAustralia,andcompliedwiththeirvisa conditions,shouldreceivetwoyearsworkrightsonsuccessfulcompletionof theircourse. 4.3 Thisshouldapplyirrespectiveofthenatureofthecourse(forexample whetheritbeArtsorEngineering)andnotbetiedtoworkinginany particularoccupation. 4.4 Themechanismfortakinguptheseworkrightsshouldbeadministratively verysimplewiththefollowingcomponents: theuniversitymustnotifythatthecoursehasbeensuccessfully completed.(Thiswillbeearlierthantheformalgraduationwhichcould bemanymonthsafterthecoursehasbeencompleted); DIACshouldnotundertakeanydetailed,timeconsuming,assessment oftheapplicant;and theschememustbeonewhichcanbemarketedbytheuniversitiesto prospectivestudentsasalmostguaranteeingpoststudyworkrights.

3.4

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Chapter6 HigherDegreesbyResearch
"Theabilitytoattracthighlytalentedresearchersandresearchstudentstostudyand workinAustraliaisoffundamentalimportanceindevelopingandmaintainingthe researchworkforcecapacityneededforavibrantanddiverseinnovationeconomy." (DepartmentofInnovation,Industry,ScienceandResearch(DIISR),SubmissiontotheReview,April2011,p1) HighqualityhumancapitalisessentialtoAustraliasabilitytoinnovate,adopthome growninnovationandapplylocallytheknowledgethatisgeneratedoutsideof Australia.ThemorehomegrownHigherDegreebyResearch(HDR)students Australiaproduces,thenthebetteritwillbeforoureconomy.Butitsnota straightforwardprocesswhereAustraliaisinsulatedfromtherestoftheworld. SomeAustralianresearchscientistsmightcompletetheirundergraduatedegreeand theirPhDattheoneuniversityandthenmoveintoaresearchpositioninthesame city.Butthesedaysitwouldnotbeuncommontofollowaverydifferentpath: undergraduatedegreeinAustralia,PhDinEngland,researchintheUS,teachingand researchingataNewZealanduniversity,returningtoapositioninadifferent Australiancitytowhereitallstarted.Thisisbutoneexampleofthemyriadofpaths andopportunitiesavailabletothemosttalentedresearchstudents. Talentishighlymobile.Thebrighteststudentsandresearchersarehighlyprizedin manycountries.Sharingideas,attackingproblemsinnewways,andbroadening horizons,isavaluablepartofmodernresearch.Importantlinkagesaredeveloped duringascholarspresenceininstitutionsofhigherlearning.Thiscanleadto continuedattachment,eitherphysicallyorthroughjointresearchandcollaboration. AustralianHDRstudentsarepartofaglobalresearchcommunity,andsometimesa globalmarket.ThisisagoodthingforAustralia.ButthecorollaryisthatAustralia alsoneedstoattractHDRstudentsfromothercountriesforthesamesortsof reasons.ThereisintenseglobalcompetitionforthebestHDRstudents,particularly inthesciences,mathematicsandtechnology.IfAustraliaistocompeteeffectively thenitisessentialthatwetakeallreasonablestepstofacilitatetherecruitmentand entryofinternationalHDRstudents.Atitscoretherecruitmentofundergraduate studentsfromoverseasisdrivenbythepursuitofmuchneededrevenue.Yesthere areotherimportantconsiderations(setoutinChapter3)buttherevenueisthekey attraction.However,forAustralianuniversitiestherevenuefromHDRstudentsis almostincidental.ThemaindriverforwantingHDRstudentsisthetalent,theskills andtheresearchopportunitiestheyembody. AccessEconomicspaperAustraliasfutureresearchworkforce:supplydemandand influencefactorsestimatesthattherearenearly116,000peopleaged1564in Australiain2009thatholdpostgraduateresearchqualifications.In2008 internationalstudentsaccountedfor23percentofallHDRcompletions.

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IndiscussionwiththeReview,DIISRhighlightedthegovernmentsaimsofincreasing thenumberofstudentscompletingHigherDegreesbyResearchandthenumberof researchgroupsperformingatworldclasslevels.Theseaimsaresetoutin PoweringIdeas:AnInnovationAgendaforthe21stCentury(Canberra: CommonwealthofAustralia,2009).Internationalstudentswillhaveanincreasingly importantroleinsupportingAustraliasresearchsector.Thisisparticularlysoas significantelementsoftheexistingresearchworkforceretireandemployment demandforresearchersincreases. ThechartbelowusesAEIdatatodemonstratethatintheyears2002through2010 thenumberofinternationalstudentscommencingHDRqualificationsinAustralia wentfromjustover2,000toalmost4,200.StudentscommencingDoctoralDegree studymorethandoubledwhilethosecommencingMastersDegree(Research) increasedby10percent. TheHigherDegreebyResearchstudentflowrepresentsjust4.1percentofhigher educationcommencementsin2010andlessthan1.3percentoftotalstudentflows.

5,000 4,000 3,000 2,000 1,000 0

02 03

Total DoctoralDegree Masters(Research)

04

05

06

07

08

09

10

In2010DIACchangedthewaytheAssessmentLevelsystemoperatedforstudents onPostgraduateResearchvisas(subclass574).Theeffectwastoensurethatall postgraduateresearchstudentswereassessedateitherAL1or2.InternalDIAC researchunderpinningthisdecisionfoundthatthenumberofsubclass574visa holderswhohadtheirvisacancelledunderthegeneralpowerforbreachof particularcondition/swaslow.Similarly,thenumberofintegrityreferralssent duringthesampleperiod(1July2008to30April2010)wasnegligible.Thevery smallamountoffrauddetectedinthesamplerelatedentirelytofinancial documents. DEEWRstatisticsshowthatin2009therewerealmost13,000internationalstudents enrolledinHDRcourses.Ofthesestudents,37percentstudiedatjusteight universities.Only23internationalHDRstudentswereininstitutionsotherthan universities.

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HDRstudentsmakeaveryvaluablecontributiontoAustraliansociety.Theyare concentratedinarelativelysmallnumberofhighlyreputableinstitutionsandhave veryhighratesofcompliancewiththeirvisaconditions.Thedemandsofan increasinglysophisticatedeconomywhichvaluesinnovationsuggestthathavinga greaternumberofHDRstudentswillassistAustraliasresearchprofile.Totheextent thatthesestudentsreturnhomeortoathirdcountrytheywillhelpdevelopvaluable internationalresearchlinkages. IssuesofConcern Thereareanumberofbarriersthatmakeitmorechallengingthanisdesirablefor HigherDegreebyResearchstudentstochooseAustralia.Andwhentheydochoose Australiatheseimpedimentsmakelifelessattractivethanmightotherwisebethe case. 1. VisaProcessingTimes Studentsgoingintopostgraduateresearchareahighlysoughtaftergroupwith significantandgrowingcompetitionfromtheUStheUKandothercountries.Not surprisinglyourcompetitorsalsoseethebenefitsinhavingsuchabrightgroupof peopleattheirhighereducationinstitutionsandsupportinginnovationintheir economies.TheDIACdecisionin2010totreatallHDRstudentsasAL1orAL2, irrespectiveofwhatcountrytheycomefrom,wasawelcomeinitiative.ButIbelieve weshouldgofurther.AllHDRstudentsshouldbetreatedasAL1. ThatclassificationshouldcontinuetoapplyiftheHDRstudentisundertakinga "package"coursewhichincludesEnglishlanguagetrainingorsomeother preparatorycoursespecifiedbytheirHDReducationprovider.MostHDRstudents havehighlevelsofEnglish.Howeverthereareasmallnumberofstudentsfrom countrieswhereEnglishisnottheofficiallanguagewhoneedsomespecialised Englishlanguagetraining.Forexample,anexceptionallybrightmathsstudent sponsoredbythegovernmentofacountrywherethefirstlanguageisnotEnglish mightbenefitfromsomespecialisedEnglishtrainingbeforecommencingtheirPhD studies.Icannotthinkofanyseriousreasonwhysuchastudentshouldfinditmore difficulttoobtainavisathanacolleaguewithbetterEnglishwhocommencesaPhD immediately.Similarly,someHDRstudentsmayberequiredtoundertakeanother formofpreparatorycourse,forexampleashortcourserelatingtocertainacademic skillsneededtoprosperinalengthyresearchdegree.Onceagainitwouldbe appropriatetotreatanysuchpackageasAL1initsentirety.

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HDRstudentsareatthetopendoftheinternationalstudentmix.Theyaremobile andindemandglobally.HDRstudentsaretheleastlikelygrouptobeorchestrating, orneedingtopull,amigrationrort.Thehighlevelsofcompliancebythisgroupare mostlikelypartlytheresultofthelevelofscrutinybyAustralianuniversitiesbefore acceptancetakesplace.Therearesomeprettyseriousacademicrequirements whichmustbemetbeforeanAustralianuniversitywillacceptaresearchstudent.If allstudentsseekingasubclass574visaweretreatedasAL1thiswouldfurtherspeed upprocessingtimesandthusimproveAustraliasattractiveness. 2. WorkRights HDRstudentsarelimitedtoworking20hoursperweek.Undergraduatestudents aresimilarlyrestrictedto20hoursperweekintermtime.However,undergraduate studentsareabletoworkfulltimeduringuniversitybreaks.Thisoptionisnotopen toHDRstudentswho,unlikeundergraduates,donthaveathreemonthbreak betweenDecemberandMarch.HDRstudentsareregardedasscholarswithafull timeacademicprogram.Thisisapeculiaranomaly.HDRstudentsareolder,much morelikelytohavefamilieswiththemandaremoreemployable;yetinpracticethey havelessworkrightsthanundergraduates. Underthecurrentrules,aresearchstudentcannottakeupatemporaryblockof tutoringofferedbytheuniversityifitexceeds20hoursinoneweek.Nevermind, thatthesamestudentmightnotworkagainforamonth,therulesareinflexible. Andastudentwhojustoncebreachesthe20hourworkrightsruleisliablefor mandatorycancellationofthestudentvisa!Similarly,HDRstudentsareunableto takeupblocksofemploymentwhichmaybecloselyrelatedtotheirresearch.A HDRstudentisallowedtodo20hourseveryweekofmenialworkwhichisnotatall relatedtotheirprofessionorresearch.Butjustoneweekofrelevantworkwhich exceeds20hoursplacesthestudentsvisainjeopardy.Thisisobviouslysilly.Itisan unintendedconsequenceofthecurrentrulesratherthanadeliberatepolicybythe AustralianGovernment. DuringtheReviewanumberofpeopleputdifferentpositionsabouthowtoresolve thisanomaly.OnesuggestionwasthatHDRstudentscouldbeallowedtoaverage outtheir20hoursworkrightsoverafullyear,thatis,givethem1040hoursforthe yearratherthan20hoursperweek.Whilethisissuperficiallyattractiveitwouldbe anadministrativenightmare.Howwoulditbepoliced?Wouldstudentsberequired toprovideDIACwitharunningtotal?Thesimplesolutionistoremovethe20hour workrightsrestrictionforHDRstudentsandgivethemunlimitedworkrights.

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TheoreticallyanHDRstudentcouldtakeadvantageofthisrelaxationofthecurrent rulesandworkfulltimetothedetrimentoftheirstudies.Butthatdoesntmakea lotofsense.TherewardsfromcompletingHDRstudieswouldalmostcertainly outweighanyshorttermemployment.WhatincentivewouldanHDRstudenthave todelaytheirgraduation?Inthecaseofselffundedstudentstheyarepaying substantialfeesandthefinancialincentiveinalmostallcasesisforprompt completion.Forthosestudentsfundedbybusiness,universityscholarships,or overseasgovernments;thereisadditionalpressureforthemtocompleteas expeditiouslyaspossible.Researchstudentsaremoreintensivelysupervisedthan mostothertypesofadultstudents.Ifadditionalemploymentcausedtheirprogress tosufferthiswouldsoonbecomeapparenttosupervisorswhohaveeveryincentive toassistthestudenttofinalisetheircoursewithintheexpectedtimeframe. 3. LengthofVisa Withmostundergraduateandotherqualificationstheendofclassesorexams signalsthecompletionofthecourse.Unlessthemarkersareextremelyslow,a successfulstudentgainsthequalificationsoonafterthelastexamorpieceofworkis submitted.HDRstudentsgaintheirqualificationsthroughaverydifferentprocess, bytheexaminationofathesis.ThecurrentapproachisfortheHDRstudentvisato expireshortlyafterthesubmissionofthethesis.Howeverthisdoesnotfullytake intoaccountthespecialnatureofHDRdegreeswhereitsnotsimplyamatterof markinganessayoranexamtodetermineifthestudenthaspassed.Inthecaseof anHDRthesisitcanbeamuchmoreinteractiveprocess.Forexample,an examinationcommitteemightaskforrewritingsectionsofathesispriortopassing it.Italsomightengageindiscussionwiththestudentaboutaspectsoftheresearch. Thestudentmightberequiredto"defendthethesis".Ifthestudenthastoreturn homeitcanbemoredifficulttoundertakethisadditionalworkeffectively. Universityexperiencesuggeststhatstudentswhoareabletostaythroughthis periodaremorelikelytoquicklypublishthushelpingboththemselvesandtheir institution. Consequently,itwouldbemuchmoresensibleifthesubclass574visaenableda HDRstudenttostayforuptosixmonthsaftersubmissionofthesis.WhileIstrongly recommendthatDIACdevelopanappropriatemechanismtogiveeffecttothis principleIdonotintendtobeprescriptiveabouttheexactmechanism.Itwillneed tocoexistwiththenextrecommendationconcerningpoststudyworkrightsforHDR students.DIACofficersaremuchbetterplacedthanmetodesignthetechnicalvisa arrangementsinamannerwhichmeetstheobjectivesoutlinedinthisandthenext section.

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4. PostStudyWorkRights InChapter5ofthisReportIrecommendthatinternationalstudentswhograduate withaBachelorsorMastersbyCourseworkdegreefromanAustralianuniversity receivetwoyearspoststudyworkrights.ThecaseforHDRstudentsisevenmore compelling.Forallofthereasonsoutlinedearlierinthischapterweshoulddo everythingpossibletoenableAustraliatobenefitfromtheskillsofworldclass researchers.GuaranteeingsuccessfulHDRgraduatespoststudyworkrightshastwo obviousbenefits.Firstithelpstoattractthemtostudyhere.Seconditimprovesour chancesofthemstayingforaperiodaftergraduation.Inthisregardtheissueisnot whethertheywillgohome(ortoathirdcountry)aftertheirpoststudyworkperiod hasexpired.Theissueismorewhether,giventheglobalcompetitionforquality researchers,theywillactuallystayinAustraliafortheperiodofpoststudywork whichthischangewouldallow. SuccessfulMastersbyResearchstudentsshouldbeentitledtothreeyearsofpost studyworkrights.PhDgraduatesshouldreceivefouryears.Asisthecasewiththe recommendationsforthetwoyearpoststudyworkrightsforothergraduates,Iam notattemptingtoprescribethemechanismbywhichDIACcouldachievethis.Forall graduatesitshouldbesimple,streamlinedandfast.TheimperativetodosoforHDR graduatesisevenhigher.ItisuptoDIACtodecidewhetherHDRgraduatesaccess thesamemechanism,oradifferentone,toothergraduates.Butwhateverthe mechanismchosen,itmustbequick,effectiveandcapableofbeing"marketed"to prospectiveHDRinternationalstudents. 5. VisaApplicationCharge ElsewhereinthisReport(Chapter17)thesizeoftheVisaApplicationCharge(VAC)is discussed.Whileitwouldnaturallybepreferredbyallapplicantsthatthechargebe lower,intheendthisisamatterforthegovernmenttodecide.Itisthegovernment whichmustweighupallofthecompetingdemandsforfunds;howtobalancethe myriadofrevenueandexpenditurepossibilities.However,ifthegovernmentwas preparedtosacrificeanyrevenueinthehopethatthismightimpactonstudents choiceaboutwheretostudy,thenIwouldsuggestitstartwiththeHDRstudents.It isunlikelythatreducingtheVACforallstudentswouldhaveanimpactondeciding whetherornottocometoAustralia. However,giventhestrongglobalcompetitionforHDRstudents,itmightbeworth makingasignificantgesturetoHDRapplicants.CompleteabolitionoftheVACfor HDRstudentswouldhaveaverysmallbudgetaryimpact.Butitmightsendan importantmessageabouthowtheAustralianGovernmentvaluesinternationalHDR students.

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Recommendation5 ThatallHigherDegreebyResearchstudentsvisasubclass574betreatedas thoughtheyareallAL1applicants. Recommendation6 ThatwhereanyEnglishlanguageorotherpreparatorycourseisrequiredbythe HigherDegreebyResearchproviderthenthewholepackagestillbetreatedasAL1. Recommendation7 ThatallHigherDegreebyResearchstudentsbegivenunlimitedworkrights. Recommendation8 MastersbyResearchgraduatesshouldreceivethreeyearspoststudyworkrights andPhDgraduatesfouryears. Recommendation9 ThatthevisaarrangementsforHigherDegreebyResearchstudentsbesuchthatan extensionforuptosixmonthsaftersubmissionoftheirthesisisavailableifneeded duringtheinteractivemarkingprocess.

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Chapter7 NonuniversityHigherEducationand VocationalEducationandTraining(VET)

Inadditiontouniversities,therearealsoadiverserangeofeducationproviders whichconductcoursesclassedas"highereducation".Thesecoursecategories include:aBachelorDegree,BachelorHonoursDegree,AssociateDegree,Graduate Certificate,GraduateDiploma,Diploma,AdvancedDiplomaandMastersDegree. Someofthenonuniversityhighereducationprovidersconducthighlyspecialised coursesforexampletheologicaltraining.Manyapparentlymirrorcourseswhich arealsoofferedatuniversitiesforexampleaBachelorofBusiness.Othersoffer courseswhicheitherextendVETqualificationsorcompetewiththemforexample inareaslikecookingandhospitality. Thenonuniversityhighereducationsectorisgenerallytreateddifferentlyinterms ofstudentvisastotheVETsector.Forastartitisincludedinthesamevisacategory subclass573asmostuniversitycourses.TheVETsectorisinadifferentvisa categorysubclass572.Onoccasions,thehighereducationsectoristreated differentlywithregardtoALs.Forexample,fromApril2011applicantsfromChina andIndiaforhighereducationcoursesareclassedasAssessmentLevel3(AL3).By contrast,applicantsfromthesamecountriesseekingtostudyatVETcoursesin AustraliaevenwiththesameprovidersareclassedasAssessmentLevel4(AL4) whichhasmorerequirementstosatisfy. Thenatureofeducationischanging(moreaboutthisinChapter15)andthe distinctionsbetweensectorsarelikelytobecomelessdefinedovertime.It'snotso muchthatthenatureofthecourseswillchange,butthatthesameproviderswill offerbothVETandhighereducationcourses.AndmoreandmoreVETprovidersare likelytoseektoofferhighereducationcourses.Significantly,theAustralian Governmenthasflaggedthat,inthenottoodistantfuture,itwouldliketomerge thehighereducationregulatorTEQSAandthevocationaleducationandtraining sectorregulator,AustralianSkillsQualityAuthority(ASQA). Forthereasonsoutlinedabove,boththenonuniversityhighereducationsectorand theVETsectorarediscussedinthischapter.However,Idorecognisethatwhile thereareincreasingsimilaritiestherearestillalsodistinctdifferences.AthisstageI supportthecontinuanceofthedifferentvisacategoriesforhighereducationand VET.Butthismayneedtobereassessedinthefuture.Solongasthereisa distinctionbetweentheALsforhighereducationandVET,andwhilethehigher educationALislowerthantheVETAL,therewillbeanincentiveforVETprovidersto seektoalsogainhighereducationstatus.

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Significantly,afterDIACdroppedtheALsforhighereducationcoursesinChinaand IndiabelowtheALsforVETcourses,therewasanupsurgeinnewapplicationsfrom VETprovidersseekingaccreditationforhighereducationcourses.Thiswas particularlythecaseinVictoria.Itishardtobelievethatthisupsurgewasentirely coincidental.Atleastinpart,thisupsurgeinregistrationapplicationswouldhave beendrivenbyvisarequirementsratherthaneducationalimperatives. In2010therewereover30,000enrolmentsat97nonuniversityhighereducation providers.Table7.1belowsetsouttheenrolmenthistoryfortheperiod20022010. Itshowstheverysignificantgrowththatoccurredinnonuniversityprovisionwith totalnumbersmorethanthreetimeslargerin2010thantheywerein2002.
Table7.1Enrolmentsinhighereducationcoursesatnonuniversityproviders 20022010 2002 2003 2004 2005 2006 2007 2008 2009 2010 8,459 11,119 13,748 16,148 16,926 18,953 22,576 27,163 30,266
Source:AEIStatistics

Table7.2looksatthelevelofstudybystudentsundertakingcoursesat nonuniversityhighereducationproviders.Whatisimmediatelyapparentisthe predominanceofDiplomalevelstudentswhomakeupsome60percentofthetotal studentflow.TheotherclearpatternisthegrowthinBachelordegrees. Table7.2Enrolmentsinhighereducationcoursesatnonuniversityproviders20052010 LevelOfStudy 2005 2006 2007 2008 2009 2010 AdvancedDiploma 1,354 1,487 1,514 1,961 2,324 2,200 AssociateDegree 0 87 199 490 752 1,043 BachelorDegree 2,127 2,508 2,969 3,547 4,937 7,225 Diploma 12,169 12,405 13,737 15,839 17,908 18,249 DoctoralDegree 22 24 19 17 15 17 GraduateCertificate 67 32 31 13 25 19 GraduateDiploma 180 175 165 161 277 353 MastersDegree(Coursework) 193 180 305 536 914 1,154 MastersDegree(Research) 34 28 14 12 11 6 PHD&HigherDoctorateQualifying 2 0 0 0 0 0 Total 16,148 16,926 18,953 22,576 27,163 30,266
Source:AEIStatistics

Table7.3belowprovidesinformationonthenationalityofenrolmentsatnon universityproviders.Overtheperiod20052010Chineseenrolmentshavegone from35percentto43percentoftotalflows.Theotherstandoutfeatureisthe growthinenrolmentsfromNepalandIndiaalthoughthedeclineinIndian enrolmentshasalreadyshownupinthefigures.

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Table7.3Enrolmentsinhighereducationcoursesatnonuniversityproviders20052010 Nationality 2005 2006 2007 2008 2009 2010 China 5,811 6,333 7,174 8,898 11,295 12,978 Vietnam 265 364 579 1,116 1,717 2,086 Nepal 26 58 155 327 679 1,822 Korea 1,255 1,476 1,645 1,851 1,846 1,723 India 475 619 1,024 1,409 1,806 1,667 Indonesia 1,595 1,626 1,683 1,665 1,677 1,622 Malaysia 851 761 756 804 901 958 HongKong 1,574 1,098 936 1,193 1,225 769 Other 4,296 4,591 5,001 5,313 6,017 6,641 Total 16,148 16,926 18,953 22,576 27,163 30,266
Source:AEIStatistics

VocationalEducationandTraining In2010therewere533providerswhichsuppliedVETcoursestointernational students.Theseareaparticularlydiversearray.Theyincludestategovernment ownedTAFEcolleges,ninepublicuniversitieswhichalsoprovideVETcourses, publiclylistedcompanies,privatecompanies,nonprofitorganisations,components ofmultinationaleducationproviders,tradeunionandindustryassociationtraining organisations,andfamilybusinesses.TheVETsectorincludessomehighlyreputable andwellestablishedbusinesses.Italsohasincludedanddespitetheregulatory improvementsmadeinthelastfewyears,Ibelievestillincludessomeproviders moreinterestedinprofitthanineducation. Atlastcount66nonuniversityproviderswereregisteredwithCRICOSforboth highereducationandVETcourses.Butasmentionedearlier,thisprocessislikelyto acceleratewithmoreapplicationsinthepipeline.Ifotherhighereducation providersweretoreceivethesamebenefitsrecommendedforAustralian universities,itwouldalmostcertainlybethecasethatalargenumberofotherVET providerswouldseektorepositionthemselvesashighereducationproviders.The incentivetomorphfromonesectortotheotherwouldbeenormous.Thiswould haveprofoundimplicationsfortheintegrityofmigrationcontrols.Itistherefore essentialthattherecommendedbenefitsareconfinedtotheuniversitysector. Table7.4EnrolmentsandCommencementsinVETcourses20022010 2002 2003 2004 2005 2006 2007 2008 2009
Enrolments Commencements
Source:AEIStatistics

44,786 24,348

45,991 24,232

45,547 25,369

50,919 29,477

2010 67,018 101,988 153,881 207,985 206,581 40,704 62,953 94,494 118,331 107,752

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TheStateoftheVETsector Atfirstglance,thereductioninVETsectorenrolmentsappearstobequitemodest. However,thenumbersare"proppedup"bytwofactors.First,the"Enrolments" figureincludesthecarryovereffectsofpreviousenrolmentsforcourseslastingmore thanayear.Secondly,someofthoseVETstudentsaffectedbythepathwayto migrationbeingdramaticallyreducedaftertheycommencedstudiesareenrollingin furtherVETcourseswhiletheyarestillinAustralia.Thisphenomenonwilltosome extentmasktheextentoftherealdeclineandwillprobablycontinuetodoso throughtotheendof2012. Ifwelookatjustnewenrolments(referredtoas"commencements"),ratherthan totalenrolments,thedropismoreobvious.ThefallinVETsectorenrolmentswas impactedbyvariouselementscontributingtothe"perfectstorm"mentionedearlier. However,substantialimpactcanbeattributedtothedramaticchangestothevisa andmigrationpolicysettingsinlate2009andearly2010.
Table7.5CommencementsinVETcoursesbynationalityYTDApril20062011 2006 2007 2008 2009 India 2,193 6,284 11,616 17,583 China 2,957 3,924 5,193 6,371 Thailand 1,146 1,362 1,823 2,369 Korea 1,310 1,368 1,970 2,507 Nepal 209 1,414 3,399 4,901 Pakistan 273 446 778 961 Vietnam 184 355 619 1,338 Brazil 848 1,048 1,338 1,650 Indonesia 497 585 861 1,220 Other 7,552 8,721 10,883 11,907 Total 17,169 25,507 38,480 50,807
Source:AEIStatistics

2010 12,669 5,929 2,983 2,931 2,782 1,108 1,671 1,627 1,333 12,547 45,580

2011 11,930 5,520 2,953 2,639 2,074 1,738 1,633 1,591 1,490 12,045 43,613

Theabovetabledemonstratesthesignificantdeclineincommencementsfromboth IndiaandNepal,alongwithamoremoderatedeclineinChinesecommencements, whencomparingthelatestavailabledata(AprilYTD).Commencementsfromall threecountriespeakedin2009.Atthattime(usingtheAprilYTDdata)they represented57percentoftotalcommencements.Ayearlatertheyrepresent45 percentofasignificantlysmallernumberofcommencements.Itishardtopredict wherethismightend. Thetablebelowlooksatcommencementsaccordingtobroadfieldsofstudy.What itdemonstratesinpartarestudentbehaviourchangescoincidingwithchangesto thegovernmentsmigrationpolicies.

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Table7.6Commencementsbybroadfieldofstudy20052010 2005 2006 Architecture,Building 168 152 Arts,HumanitiesandSocialSciences 1,651 1,681 BusinessAdministration,Management 8,080 10,161 ComputerScience,InfoSystems 2,686 2,947 Engineering,Surveying 737 1,358 Health,CommunityServices 1,447 2,012 Services,Hospitality,Transport 10,403 17,854 VisualandPerformingArts 780 801 Other 3525 3738 Total 29,477 40,704
Source:AEIStatistics

2007 238 2,131 14,773 4,295 1,958 3,854 29,855 876 4973 62,953

2008 468 4,076 21,510 5,651 4,355 6,920 45,171 1,419 4924 94,494

2009 1,252 5,214 32,475 8,115 6,502 4,577 48,929 3,910 7357 118,331

2010 1,459 4,530 50,235 5,421 5,503 3,550 26,882 3,336 6836 107,752

AsTable7.6aboveshows,in2010thereweredramaticdeclinesincommencements intheServices,HospitalityandTransportfield.Thisbroadfieldincludedcookery, hairdressingandhospitalitymanagement.Simultaneouslytherewasadramatic increaseincommencementsintheBusinessAdministration,Managementfieldof studycourseslinkedtooccupationsthatwerestillontheSOL.Thisstrongly suggeststhatasignificantdriverforsomestudentsundertakingaVETcoursein Australiawasthepossiblelinktoamigrationoutcome. TheoverallreductionsincommencementsobviouslyhurtVETproviders.Andthey hurtbothhighqualityprovidersandpoorqualityproviders.Manyofthebetter providershaveexpressedtheirbeliefthatthechangesunfairlyimpactedonthem. "Itwasrighttohurttheshonksandthedodgyproviders"theysay"butwhyhurtus too?"Atoneleveltheyhaveacase.Ahighqualityprivateprovider,agovernment TAFE,andadualsectorpublicuniversity,areverydifferenttoanunscrupulous operatorwithnointerestineducationwhowasrunningaprivate"college"asa migrationscam.Itisunderstandablethathighqualityprovidersareupsetatbeingin anywayassociatedwithwhathasvariously(andinsomecases,fairly)been describedasshonks,crooksandspivs. However,manyreputableproviderswerenotonlyhurtbythecontextualdamage the"guiltbyassociation"theywerealsoimpactedbythemigrationruleschanges. Theremovalofthealmostguaranteedpathwaytomigrationforinternational studentsundertakingacourseontheSOLand/orMODLlistsofoccupations inevitablyhurtallprovidersofsuchcourses.Thisledtothedemiseofsomeofthe worstoftheprivateproviders.Butitalsoimpactedtherevenue,andinsomecases thecommercialviability,ofeveryeducationproviderwhoconductedcoursesfor occupationsontheSOLandMODLlists.

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Manyprovidershavestillnotfullycometotermswiththosechanges.Duringthe courseoftheReviewIreceivednumerousverbalrepresentations,andsomeformal submissions,stronglyarguingforrestorationofacloserlinkbetweenvocational studyandmigration.Forthoseproviderswhoaredependentuponalinkbetween theircoursesandmigrationoutcomes,theirsituationislikelytofurtherdeteriorate. Notonlyaretheyimpactedbylastyear'sdecisions,butthenewrulesforGSM announcedwiththisyear'sFederalBudget,furthererodestheconnectionbetween VETcoursesandmigration.Thesenewrules,tocomeintoforceon1July2012and explainedearlierinChapter3,willmakeitincreasinglydifficultforthosemarketing VETcoursestocrediblypromiseamigrationoutcome. ThetwothingstheVETsectormostwantisacloserlinkbetweentheircoursesand migration;andfewerbarrierstoentryforprospectiveinternationalstudents.Both undoubtedlywouldincreasestudentnumbers.ButIamnotpreparedto recommendeither. TorecommendanyrestorationofcloserlinksbetweenVETcoursesandmigration wouldbeinconsistentwiththerecent,considered,policydecisionsoftheAustralian Government.Whetheryouagreewiththepolicyornot(andpersonallyIdostrongly supportthosechanges)thatpolicyisunlikelytochangeintheforeseeablefuture.Of coursemanyintheVETsectorwouldlikechangeswhichwouldbeintheirown financialinterests.Buttheywouldnotnecessarilybeinthebroadernational interest. IntermsoftheotherVETsectordesire:itwouldbeprematureforanyReviewto recommendmakingiteasierforprospectiveVETstudentsasawholetoobtainvisas. AustraliaisenteringaneweraintermsofstudentvisasandtheVETsector.There havebeensomeseismicchanges.Notonlyisthecontextmarkedlydifferenttowhat itwasjusttwoyearsago,butthatcontextitselfisstillevolving.Thisnew environmentincludes: theremovalofagovernmentsanctionedschemewhichlargenumbersof studentsandothersaccessedformigrationpurposes; thenewGSMrules(from1July2012)whichfurtherweakenthelinkbetween vocationaltraininginAustraliaandmigration; manyprovidersalreadyimpactedbythesechangesarestillintheprocessof adjusting,orareyettoadjust,theirbusinessmodelstothesechanges; anewnationalregulatorforthevocationalsector,ASQA,whichisdueto commenceon1July2011; increasingnumbersofVETprovidersseekingregistrationtosupplyhigher educationcourses; stronginterestfromforeigngovernmentsinAustralianVETproviders deliveringmoreservicesinthosecountries(thisisdiscussedfurtherin Chapter15);and thepossibleintroductionofmoresensiblecriteriaforassessingstudentvisa applications,alongwithotherintegritymeasures,recommendedinthis Report.

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Itisfartooearlytopredictwithanyconfidencehowthischangedenvironmentwill affectthebehaviourofprospectivestudents,agentsandeducationproviders.How willthereputableprovidersintheVETsectoradjusttothenewrealities?Howmany ofthelessreputableagentsandproviderswillcooperatewithresidentsofother countriestocontinuetotryandfacilitateanentrytoAustraliawithnointentionto returnhome?Unfortunately,intheshortterm,therearefinancialrewardsforany stepstakentoattractmorestudents.Regrettablythemostlikelyplacesforsystemic rortscontinuetobeintheVETsector.ThatisnottosaythattheentireVETsector, oreventhemajority,lacksintegrity.Butwith533registeredprovidersofferingVET coursestointernationalstudentsin2010itisfartooriskytoextendthebenefits beyondthecurrentarrangements. ConsequentlythisReportrecommendslittlechangetotherulesandarrangements relatingtotheVETsector.Theonlysignificantchangesarethoseintegritymeasures outlinedinChapters3and12whichapplytoallprovidersinallsectors.Nospecific changesarerecommendedaffectingtheVETsectorotherthanthepossibilityof greatergovernmentsupportforoffshoretrainingdetailedinChapter15. ThisReportalsorecommendsnodirectchangestotherulesandarrangements specificallyrelatingtothenonuniversityhighereducationsector.However,the maintenanceofwhatareessentiallythecurrentarrangementsfortheVETand nonuniversityhighereducationsectors,coupledwiththestreamliningof proceduresforuniversities,shouldhavesomebenefitsforhighqualityproviders. StreamliningtheuniversityapplicationsfreesupDIACstafftoconcentrateonother applications.AsnotedpreviouslythereisamultiplicityofhighereducationandVET providersandboththecoreactivitiesandthequalityarevariable.Ofcoursefor thosehighqualityTAFEandprivateproviderswhopartnerwithuniversitiesthere willbegreatopportunities.SignificantnumbersofVETandhighereducation providersconductfoundationcoursesand/orELICOSforstudentsaspartofa packagewithauniversity.UndertheinitiativesproposedinChapter5thosehigher educationproviderswhopartnerwithanyofthe39Australianuniversitieswillalso benefitfromthestreamlinedprocessingarrangementsforthosepackagedcourses.

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Chapter8 EnglishLanguage
TheEnglishLanguageIntensiveCoursesforOverseasStudents(ELICOS)sectormakes asignificantcontributiontoAustraliasinternationaleducationprovision.Some studentscometostudyEnglishasa"standalone"activity.Manyothersstudy EnglishasaprecursortoundertakingfurtherstudiesinAustralia,studiesforwhich theyneedabettergraspofEnglishthantheyotherwisewouldhaveobtained. PeoplefromoverseaswhostudyEnglishinAustraliacomeonavarietyofvisas,not juststudentvisas.Someenterontouristvisas,othersonaworkingholidayora workandholidayvisa.Touristvisaholdersareallowedtostudyforupto,and includingthirteenweeks,withoutbreachingtheirvisaconditions.Visitorsonawork andholidayorworkingholidayvisaareabletostudyforuptofourmonths.(English AustraliathepeakbodyforthesectorinasubmissiontoaseparateReviewis seekingtohavetheamountoftimeastudentcanstudyonatouristvisaextendedto fourmonthsaswell.) Whiletherearenoofficialstatistics,itisclearthatsomeELICOSprovidersactively andsuccessfullymarketshortintensivelanguagecoursesdesignedtofitwitha touristortheworkingholidayvisas.EnglishAustraliaestimatesthatin2009one thirdofEnglishlanguagestudentsstudiedonnonstudentvisatypes.These numbersarenotincludedintheofficialstatisticswhichAEIcollectsfortheELICOS sector.ThosestatisticsrelateonlytoEnglishlanguagestudentswhoenterAustralia onastudentvisa.Therefore,thefollowinganalysisofthesectorpertainsonlyto thosewhoheldastudentvisa. OverthepastnineyearsthenumberofELICOSenrolmentshasalmostdoubled. HoweverascanbeseeninTable8.1below,therewasa17percentdeclinein numbersin2010.ThelatestdataforYTDtoApril2011illustratethatELICOS enrolmentsdeclinedby21percentwhencomparedwiththesameperiodin2010.
Table8.1ELICOSFullYearEnrolments20022010 Sector 2002 2003 2004 2005 2006 ELICOS 57,452 62,101 61,743 64,560 76,905
Source:AEIStatistics

2007 102,214

2008 127,247

2009 137,539

2010 113,477

StudentscometolearnEnglishinAustraliaforavarietyofreasons.Howeverthe majorityofthoseonstudentvisasgoontofurtherstudyinAustralia.AEIresearch demonstratesthatoftheinternationalstudentswhocompletedELICOScoursesin 2009onstudentvisas,27percentwentontofurtherstudywithhighereducation providers.Another33percentundertookfurtherstudyintheVETsector.Only28 percentofELICOSstudentschosetocompletejustanELICOScourse.

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Studentbehaviourdifferedmarkedlybynationality.Largerproportionsofstudents fromtheRepublicofKorea,Brazil,Japan,ColombiaandTaiwanwereELICOSonly students.TwothirdsofChinesestudentsand60percentofSaudistudents progressedfromELICOStohighereducation.Inmostcasesitislikelythatthey wouldhavebeenonapackagearrangement,wheretheELICOSstudywasa preconditionforundertakingahighereducationcourseforwhichtheyalreadyhad anofferofenrolment.AboutfourinfiveIndianstudentsand46percentofThai studentsprogressedfromELICOStoVET.ThesignificantdeclineinELICOS enrolmentsfromIndiaislikelytoreflectchangestothemigrationarrangements whichhavealsoseenafallinIndianstudentscomingtoundertakeVETcourses. ELICOSenrolmentsarehighlyconcentratedbynationality.Thetopthree nationalitiesmadeup48percentofallELICOSenrolmentsin2010(Chinaalone represented31percent).Thetoptencountriesrepresented80percent. Enrolmentsfromalltoptensourcecountriesdeclinedin2010,includingChinawhich wentdownby5percent.Onlyfivecountriesinthetop20sawincreases. ELICOScoursesareprovidedinarangeofinstitutionsandsectors.IndeedELICOS activitiesoccurinalmostallpartsoftheinternationaleducationsector.Unpublished NationalEnglishLanguageTraining(ELT)AccreditationScheme(NEAS)research showsthatofthe269activeprovidersin2010,100werestandaloneELICOS providers,99wereprivateVETprovidersandanother18werepubliclyownedVET providers,32wereuniversitiesandtheremaining20wereschools.Thenumbersof ELICOSstudentsinthedifferentprovidersalsovariedsignificantly.24providershad acapacityfor50orlessstudents.81providershadacapacityforbetween51and 150students.Butmorethanhalfofallregisteredproviders,164,hadacapacityfor morethan150studentsatatime.Schoolsgenerallyareamongthesmalland mediumproviderswithpublicVETinstitutionsmorehighlyrepresentedinthelarge segment.Theothergroupsspreadproportionatelyoverthethreesegments. KeyfindingsrelatingtoELICOSstudentswhoparticipatedintheInternational StudentSurveyconductedbyAEIindicatehighlevelsofsatisfactiononlearning, livingandsupportmatters.Particularlyhighsatisfactionwasregisteredwith teachersintermsofteachingability,abilitytobeunderstoodandapproachability. AustraliasEnglishlanguageteachingishighlyregardedworldwideandarisesfrom thehugeeffortmadepostWorldWarIItoassistmigrantsfromnonEnglishspeaking backgrounds.

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IssuesofConcern Asoutlinedabove,mostELICOSstudentsonstudentvisasprogresstofurtherstudies inthehighereducationorVETsectors.Formostofthemthisispartofapackage arrangementmadeinadvanceofcommencingtheirELICOSstudies.Soifthe numbersofELICOScommencementsdeclinethenthisreductionislikelytoflow throughtotheothersectors.Manypeopleinvolvedwithinternationaleducation refertotheELICOSsectorasthe"canaryinthecoalmine".Justascanariesonce wereusedtotestairqualityforcoalminersifthecanaryfellofitsperchthenthis wasanearlywarningsystemfortheminersofimpendingdangersotooa substantialdropinELICOSnumbersdoesnotbodewellforthehighereducationand VETsectors.Inthisregardthelatest21percentdropinenrolmentsinthe YTDApril2011isofgreatconcern.Atthisstageitisnotpossibletoquantifyhow muchofthatdroprelatedtoELICOSonlystudentsandhowmuchrelatedtothe cohortlikelytoprogresstofurtherstudies.Butitisreasonabletoassumethatat leastpartofthedeclinewillimpactontotheothersectors. WhilethisisasubstantialconcernfortheELICOSsectoritdoesnotmeanthatitcan besolvedbythatsectororwithagovernmentpolicytargetedattheELICOSsector.If studentsarenotcomingtodopackageswhichincludeELICOSthereasonsarelikely torelatetomattersbeyondtheELICOSsector,forexample,risingexchangerates, visaprocessingtimes,andcompetitionfromothercountries.Widersolutionsto theseissueswillhelpsomepartsoftheELICOSsector.Forexample,thoseELICOS providerswhichdelivercomponentsofpackagesinpartnershipswithuniversities shouldbenefitfromtheinitiativesrecommendedinthisReportforAustralias39 universities. InadditiontherearepossiblemeasuresthatcouldspecificallyassisttheELICOS sectoralone.Aswellasthegenericconcernaboutdecliningcommencementsthere aretwospecificissuesraisedbytheELICOSsectorwiththisReview: 1. TheminimumstandardofEnglishrequiredtoobtainavisa Englishlanguagerequirementsareaconditionofmoststudentvisas.Thatofitselfis contentious.Ontheonehanditisreasonabletoexpectthatastudentcommencing aVETorahighereducationcoursewithanAustralianeducationproviderhasan appropriatestandardofEnglish.Afterall,thosecoursesaretaughtinEnglish.Itcan bearguedthatwithouttheappropriatelevelofEnglishanapplicantcannotbea genuinestudentandisthereforenotentitledtoavisa.

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AcontraryargumentisthattestingEnglishlanguageproficiencyshouldbeamatter foreducationprovidersandnotforDIAC.Thereisnointrinsicreasonwhyagood graspofEnglishshouldmakeapersonlesslikelytotryandunderminetheintegrity oftheAustraliasmigrationcontrols.OrconverselythatapoorgraspofEnglish wouldmakeapersonmorelikelytobreakthemigrationrules.However,thereisa strongviewamongDIACofficersthat,fromtheironthegroundexperience,poor Englishlanguageabilityisparticularlycommonamongstudentvisaapplicantswho aremorelikelytotryandrortthesystem.Itisnotacausebutitiscorelated. IdohavestrongreservationsabouttheappropriatenessofDIACassessingthe Englishlanguagecapacityofinternationalstudents.AndIalsohaveconcernsabout theintegrityoftestingandthedocumentary"proof"offeredinsomelocations.I alsoworryaboutEnglishlanguagebeingusedasadefactoindicatorforotherrisk factors.Onbalancethough,Iamreluctanttorecommendthewholesaleremovalof theEnglishlanguagerequirementagainsttheadviceofthoseDIACofficerswhohave tomanageriskonadaytodaybasis. However,havinganEnglishlanguagerequirementbeforesomeoneisallowedto studyEnglishdoesseemalittlebizarre.Currentlythereisaminimumstandardof EnglishlanguageproficiencyrequiredforapplicantsfromAL4nationalitiesstudying standaloneELICOS.Thisisthecaseiftheyareseekingastudentvisa.However,if theycomeonatouristvisathenthereisnominimumEnglishlanguagerequirement. AsdetailedinChapter4TheFoundationStonethereareaseriesofcriteriato assesswhetheranapplicantforatouristvisaisagenuinetemporaryvisitor.Thatis thethresholdtestwhichmustbemetbeforeavisawillbeissued.Again,asdetailed inChapter4,DIACofficersareverygoodatassessingthebonafidesofapplicantsfor touristvisasandthelevelofoverstayisimpressivelylow.Thereisnoevidenceto suggestthateventhatsmalloverstayrateisdisproportionatelyconcentratedamong visitorswhostudyEnglishlanguagecourses. EarlierinthisReportIrecommendedachangetothecriteriaforobtainingastudent visa;thatathresholdrequirementbewhetherornotDIACofficersassessthatthe applicantwillbeagenuinetemporaryentrant.Ifthosechangesareimplemented thenbothsortsofELICOSstudent:thoseonastudentvisaandthoseonatouristor workingholidayvisawillhavetomeetsimilartests.Providedthosereformsare introducedthenIseenogoodreasonforpreventingbothsortsofELICOSstudents frombeingtreatedthesame.InneithercaseshouldEnglishlanguageproficiencybe athresholdrequirementforthestudyofEnglish.ForbothcohortsDIACofficers shouldhaveamplepowertorefusevisastohighriskapplicantsonothersubstantive grounds.

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RemovingtherequirementtohaveacertainlevelofEnglishbeforelearningEnglish makessenseeducationally.Andtherearegoodreasonstobelievethiswillnot increasetheriskofstudentsfailingtoobservetheconditionsoftheirvisas.However thischangestillcarrieswithitariskforhowwellthesestudentswillfunctioninthe communityintheirearlyweeksofEnglishlanguagetraining.Therecommended changesundoubtedlywillbenefitELICOSprovidersiftheyareadoptedbythe government.Butwiththisbenefitalsocomesaresponsibilityfortheproviderstobe consciousofthewelfareoftheirstudents.AstudentcommencingEnglishlanguage traininginacountryforeigntothemwillneedconsiderablesupportintheearly stagesofthecourse.ELICOSprovidersneedtoembraceasocialresponsibilityas wellasaneducationalresponsibility. 2. ThemaximumperiodallowedforELICOSstudy ForstudentsfromAL3andAL4nationalitiesthereisamaximumdurationofstudy allowedforeitherstandaloneELICOSorpackagedELICOSstudies.Thedurations varyaccordingtotheALandthenatureofthecourse.Forexample,themaximum periodallowedis50weeksforastudentvisaholderratedAL3whoisstudyinga standaloneELICOScourse.Bycontrast,themaximumperiodforanAL4student whoseEnglishlanguagecourseispackagedwithaVETcourseis20weeks. EnglishAustralia,andmanyofitsconstituentmembers,arguesthatthereshouldbe nomaximumperiodofEnglishlanguagestudy.Studentsdonotallhavethesame intellectualendowments,orthesameaptitudeforlanguages,andwillprogressat differentspeeds.Fromastudentperspectivethereisacasethatcanbemadefor someflexibilityinthelengthofEnglishlanguagestudy.ForindividualELICOS providerssuchachangewouldbeclearlyattractive,bothfromaneducationaland potentiallyfromacommercialperspective. However,itisunclearjusthowmuchofapotentialcommercialadvantagethere wouldbe.TheEnglishAustraliasubmissiontotheReview(atpage6)reportsthatin 2009theaveragecourselengthforELICOSstudentvisaholderswas15.3weeks. Thatiswellbelowthemaximumtimefortheshortestpermissibleperiod(20weeks) andquitetinycomparedtothelongestmaximumperiod(50weeks).Itbegsthe questionastohowmanygenuinestudentswouldbenefitfromanextension? StrangelytheEnglishAustraliasubmissionissilentonthequestionofhowmuch longeranyadditionalperiodshouldbe.Ifthereisnomaximumperiodthenwould thevisabe"openended"? Moreover,anyproposedchangeswouldnothappeninavacuum.Theymustbe consideredagainstnotonlythebackgroundofcurrentriskstotheintegrityof migrationcontrolsbutalsothepotentialforexploitation.WhileIhavenodoubtthat themotivationforEnglishAustraliatopromotethisproposedchangeishonourable, thatdoesnotensurethatlesshonourableindividualswouldnottrytotake advantageofit.Werethemaximumof50weeksforstandaloneELICOSstudytobe increasedthisrunstheriskofbecominganattractiveoptionforthoseapplicants moreinterestedinmanipulatingthesystemthangaininganeducation.

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Thiscouldespeciallybethecaseifmyrecommendationtoremovethethreshold requirementofEnglishlanguageproficiencybeforeavisatostudyEnglishisgranted. OnbalanceIamnotpreparedtorecommendanychangebeyondthesubstantialone ofremovingtheEnglishproficiencyrequirementforstandaloneELICOSstudents. Recommendation10 That,providedtheintegritymeasuresrelatingtotherevisedcriteriaforastudent visaareimplemented(assetoutinRecommendation1),thethresholdEnglish languagetestrequirementsforstandaloneELICOSstudentsberemoved.

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Chapter9 Schools
Comparedtouniversities,otherhighereducationandVET,theSchoolssectoris small.In2010theschoolssectorrepresentedonly3.3percentofcommencements accordingtotheofficialfigures.Howevertheactualpercentagewouldbealittle higherbecausetheofficialfiguresdonotincludesomestudentswhoarecountedin the"Other"orVETstatistics.Thereisagroupofinternationalstudentsforwhom secondarystudiesarepartofanarrangedpreparationforfurthereducation,suchas aVETcourse.Althoughthesestudentsarenotintraditional"schools",theyarestill undertakingsecondaryschoollevelstudies.Theoverwhelmingmajorityofall internationalschoolstudentsareconcentratedinthelastfewyearsofsecondary (high)school. Schoolssectornumbershavedeclinedoverthepastthreeyears.In2010 commencementsweremorethan10percentunderthoseof2002andmorethan20 percentbelowtheirpeakin2008.Thenumberofprovidersinvolvedinthesector peakedat512in2003andhasfallensteadilywith431providersactivein2010.
Table9.1SchoolsCommencements20052010 PrimarySchool JuniorSecondary SeniorSecondary Total
Source:AEIStatistics

2005 862 1,767 7,773 10,402

2006 1,107 1,772 8,225 11,104

2007 1,292 2,076 10,232 13,600

2008 1,057 2,266 10,980 14,303

2009 871 2,095 10,010 12,976

2010 751 1,658 8,469 10,878

StudentflowsintheSchoolssectorarehighlyconcentratedbynationality.Chinais responsibleforover40percentofthe2010commencements.Thetopthree nationalities(China,KoreaandGermany)togetherareresponsiblefor65percent. JustunderhalfattendAustralianpublicschoolswiththeremainderattending independentschoolsor,insomecases,privateforprofitproviderssetupspecifically toserviceinternationalstudents. Aswithotherareasofinternationaleducation,therearesomechangedpatterns emergingintheschoolssector.Representativesofthepublicschoolsectorin severalstatestoldtheReviewthattheyareexperiencinganincreasingnumberof studentscomingtoAustraliaforanexchangeperiodratherthanongoingeducation. Thesestudentsmightcomeforayear,orsometimesonlypartofayear.This changedpatternisparticularlycommonamongstudentsfromEurope.The attractionforthesestudentsisasmuchtheculturalenrichmentexperienceasitisa formaleducationalexperience.

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VictoriaandNewSouthWalesbetweenthemaccountforjustoverhalfofall commencements.QueenslandandSouthAustralia,whilesufferingdeclining commencementsin2010,aretheonlytwostatestohavecommencementsabove, andsignificantlyabove,thosetheyexperiencedin2002.

NSW VIC QLD SA WA TAS NT ACT 2002 4,343 3,317 2,026 773 1,214 261 69 255 12,258 Schoolscommencementsbystate,20022010 2003 2004 2005 2006 2007 4,325 3,616 3,182 3,485 4,594 3,342 2,950 2,646 2,732 3,513 2,204 2,219 2,208 2,456 2,762 911 959 977 1,077 1,294 1,228 1,083 898 898 980 197 216 243 205 224 53 45 31 21 29 254 234 217 234 206 12,514 11,322 10,402 11,108 13,602 2008 4,987 3,594 2,858 1,351 1,020 240 29 224 14,303 2009 3,847 3,082 3,039 1,521 971 257 42 217 12,976 2010 3,094 2,545 2,853 1,131 890 152 41 176 10,882

Source:AEIStatistics

AEIresearchdemonstratesthatinternationalstudentsintheschoolssectorflowinto othercomponentsofinternationaleducationwithinAustralia.Some25percent moveimmediatelytohighereducationand12.5percentimmediatelytoVET.This highlightstheimportanceoftheschoolssectorinprovidingastream,albeitsmall,of appropriatelyqualifiedstudentsfamiliarwithAustraliasapproachtoeducation. Issuesofconcern 1. TheminimumstandardofEnglishrequiredtoobtainavisa MostschoolstudentsdonothavetobeabletoprovetheirabilitytospeakEnglish. Itisuptotheschooltodecidewhatlevelisappropriate.TheexceptionisAL4 students.OnlyAL4nationalitiesarerequiredtoundertakeEnglishlanguagetesting butonlyforstudentswhoareoversixteenyearsofage.Therearecurrentlyonly twonationalitiesassessedattheAL4levelfortheissueofsubclass571visasChina andBangladesh.Chinahashadawaiverfromapplicationofthisprovisionfromits inception.SoinpracticeBangladeshischoolstudentsovertheageof16aretheonly onesrequiredtobetested. TheminimumstandardsofEnglishrequirements,asimplemented,doseem anomalous.Ifthereisaseriousconcernaboutprospectivestudentsfromany country,thereareotherpropergroundsforrefusingavisaratherthanthelevelof English.

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2. ThemaximumdurationofELICOSstudy ThemaximumdurationofEnglishlanguagestudyforschoolstudentsisaffectedby therelevantAL.AL1andAL2havenorestrictions.Aschoolstudentfromthose countriescanundertakeasmuchEnglishlanguagetrainingastheyrequire.By contrastAL3studentsarerestrictedto40weeksandAL4studentsto30weeks. Schoolstudentsmayrequirevaryinglevelsofstudytobringthemuptothelevel necessarytoeffectivelyparticipateatschool.Itdoesseempeculiarthatstudents fromEuropeancountries(classedasAL1orAL2)whosefirstlanguageisstructurally similartoEnglish,canhavemoretimetolearnEnglishthansomestudentsfromAsia (classedasAL3orAL4)whosefirstlanguageissomarkedlydifferent.Itwould appearthattheserulesareasurrogatemeasuretocontrolvisarisks.Onceagain therearebetterwaystocontrolthoserisksthanarbitrarilyrestrictingtheamountof ELICOSstudyabonafideschoolstudentcanundertake.Themaximumperiodof standaloneELICOSstudyis50weeksatAL3and40weeksatAL4.Icannotseea goodreasonwhythemaximumperiodforschoolstudentsshouldbeanyless. IndeedinthecaseofschoolstudentsIwouldallowa50weekmaximumirrespective oftheAL. Generally,schoolstudentsarealowriskgroup.Thecohortthatmostconcernsmeis undertakingsecondaryeducationoutsideofthetraditionalpublicandprivateschool milieu.Ibelievethatsubsectordoesrequiresomespecialattentionbutablanket restrictiononthemaximumdurationofELICOSstudyforschoolstudentsisnotthe mostsensiblewaytoachievethis. 3. Studentguardianarrangements Whereastudentislessthan18yearsofageaparentorrelativecanapplyto accompanythemtoAustraliaasastudentguardian.Theremayalsobeexceptional circumstanceswhereastudentover18yearsofagemayneedaguardianfor religiousorculturalreasons.Studentguardiansmustresidewiththestudentand areunabletoworkinAustralia.Studentguardiansarenotallowedtobringother familymemberstoAustraliawiththeexceptionofdependentchildrenundertheage ofsix. DIACandotherstakeholdershaveconcernsabouttheissueofstudentguardians. Breachesoftheworkandresidenceconditionshavebeenidentified.Some guardianshavebeenworkingillegally(oftenforcashinhand).Thisunderminesthe workingconditionsofAustraliansandcompromisestheintegrityoftaxation revenue.Someguardianshavemovedtotheirhomecountry,athirdcountryor otherpartsofAustraliadistantfromthestudent.Suchbehaviourraisesstrong concernsaboutthewelfareoftheminorstudent.SubmissionstotheReviewhave requestedanumberofamendmentsinrelationtostudentguardiansincluding: requiringallstudentsunder12yearsofagetobeaccompaniedbyaparentor closerelativeonastudentguardianvisa;

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Thefirstissueisamatterforstateandterritoryregulators,thoughIdoworryabout veryyoungchildrenstudyinginanyforeigncountrywithoutthesupportofaparent orguardian. Inregardtostudy,threemonthsdoesnotseemlongenoughforastudentguardian tolearnenoughEnglish,whichwouldprobablybetheprimaryfocusstudyforthose fromanonEnglishspeakingbackground.Thisisparticularlythecaseiftheguardian isonlystudyingEnglishparttimesothattheirownstudiesdonotinterferewiththeir guardianshipresponsibilities. Guardiansarenothereasstudents.Iftheywanttoengageinextensivestudythen theymustapplyforastudentvisaintheirownright.Thethreemonthstudy requirementshouldremainandapplytoallnonEnglishlanguagecourses.However, itwouldbereasonabletotreatEnglishlanguagestudydifferently.Student guardiansshouldbeallowedunlimitedtimetostudyEnglishalbeitonaparttime basis. Theseriousissuesofstudentguardiansbreachingworkrightsandnotresidingwith thestudentshouldnotbetolerated.Theseconditionsshouldremainonthestudent guardianvisa.BreachesofsuchconditionsarethesortsofthingswhichDIAC integrityandcomplianceofficersshouldbeproactiveindetecting.Theadoptionof therecommendationsinChapter12tofreeupthoseresourcestoenablethe targetingofhighriskbehaviourshouldhelpinthisregard. 4. Financialrequirements Quitereasonablythegovernmentwantstobesurethatfamilieshaveadequate resourcestosupporttheirschoolstudentswhiletheyarestudyinginAustralia.In relationtothefinancialrequirements,severalsubmissionstotheReviewarguedthat prepaidhomestayfeesshouldbecountedtowardstherequirementjustlikeprepaid boardingschoolfeesarecounted.Thisseemseminentlylogicalandputsday schools,bothpublicandprivate,onasimilarfootingtoboardingschools. However,intheearlystageoftheconsultationprocessanumberofstakeholders alsoemphasisedtotheReviewtheimportanceofeffectiveregulationofhomestay providers.WhileitisnotpartofmytermsofreferenceIdosharetheirconcerns. Stateregulatorswouldbewelladvisedtoensureeffectiveoversightofthisarea.

allowingstudentguardianstostudy(theyarecurrentlyrestrictedtothree monthsofstudyoverthelifeoftheirvisa); allowingstudentguardianstowork;and increasedmonitoringofstudentguardianvisaconditions.

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5. Qualityprovision Generallytheschoolvisasystemworkswell,asdothevastmajorityofschoolswhich internationalstudentsattend.Mostinternationalsecondaryschoolstudentsattend stategovernmentrunschoolsorhighlyreputableprivateschools.Inbothcasesthe qualityoftheeducationalexperienceisthekeydriverandinbothcases,the internationalstudentsconstituteonlyasmallpercentageofeachindividualschools enrolments. Idohoweverhavesomeconcernsaboutthoseprivatebusinesseswhichrunan integratedpackageofcoursesjustforinternationalstudents.Thereareexamples wherethesameproviderrunstheELICOStraining,aschoolandVETprogramsas partofatotalpackage(sometimesintheoneCBDbuilding)forinternational students.Suchoperationsneedthemselvestohavestrongqualitycontrolsto ensurethatthestudentsreceivethebestpossibleeducationateachlevel. Regulatorsneedtobevigilantinmonitoringasituationwherethereisastrong financialincentivetoprogressstudentsfromonesectortoanother.Therelevant authoritiesalsoneedtocombatanyhintofexploitationofthesestudents. Recommendation11 ThattheEnglishlanguagerequirementsforschoolstudentsinAL4bethesameas thoseapplyingforAL1throughtoAL3andtheassociatedwaiverschemeabolished. Recommendation12 ThatthemaximumperiodoftimeaschoolstudentvisaholdercanstudyEnglishbe 50weeksacrossallALs. Recommendation13 Thatthecurrentrestrictionsonstudentguardiansofamaximumofthreemonthsof studybemaintainedbutunlimitedparttimestudyrightsforELICOSstudyonlybe allowed. Recommendation14 Thatprepaidhomestayfeesbeincludedinfinancialassessmentsonthesamebasis asprepaidboardingfees.

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Chapter10 AusAIDandDefence
TheAustralianAgencyforInternationalDevelopment(AusAID)andtheAustralian DepartmentofDefence(Defence)sponsorasmallbutveryimportantstudentflow. ThosestudentsareusuallysponsoredbytheAustralianGovernmentbutsometimes foreigngovernments.TheyareintegraltovariousAustralianbilateralrelationships aswellasdemonstratingAustraliascommitmenttoassistothercountriesintheir developmentefforts. Defencesponsoredalmost1,000studentsin2010whileAusAIDsscholarships programreachedalmost2,100studentsin2010.Thereareanumberof characteristicsaboutbothprogramsthatareworthnoting: overthenextfouryearsAusAIDsscholarshipprogramisexpectedtoalmost doubleinnumberstoover4,000students; bothAusAIDandDefencesponsorstudentsonawidevarietyofprograms whichrangeinlengthfromtwoweekshortcoursesthroughtopostgraduate programs.TheundergraduateofficercadetprogramattheAustralianDefence ForceAcademycantakeuptofiveyears;and theoverwhelmingmajorityofstudentscomeinonthesubclass576visa. Howeverarangeofothervisatypesareusedforeducationrelatedvisits,such aswhenforeignmilitaryinstructorsaresecondedtoAustralianDefenceForce units,orwherethedurationofacourseisshort. 80percentofDefencesponsoredtraineescomeinunderthesubclass576visa. Whilethisvisahasworkrightsattachedtoit,itisaDefenceconditionthattrainees arenotpermittedtowork.AusAIDsponsoredtraineeshaveatwoyearreturnhome requirementplacedontheirsubclass576visa.WhileIhaverecommended elsewherethatcertaingraduates,whoareincompliancewiththeirvisaconditions, begivenaccesstoworkrightsIdonotintendthatsucharecommendationwould overridethenonworkingandreturnconditionsattachedtoscholarships.Thisgroup oftraineesisquitedifferenttothemajorityoftheinternationalstudentsseeking educationoptionsinAustralia. Thelevelofriskthatattachestostudentssponsoredunderthegovernment programsisverysmalleventhoughmanyofthemcomefromnationalitieswithhigh AssessmentLevels.Howeverthisvisasubclassisnotwithoutitschallengesforboth agenciesandtheirintendedstudents/trainees. ItappearsthatfromtimetotimestudentswhohaveadisabilityorwhohaveHIVare deniedavisabecauseofconcernsaboutthepotentialforthemtoimposecostson theAustraliantaxpayerthroughuseofAustralianmedicalfacilities.Thisappearsto beovercomeonlyonaverycumbersomecasebycasebasiswheretheagency concernedintervenestoassistthepotentialstudenttodemonstratethattheyhave theresourcestosupporttheirstayinAustraliaincludingtheirmedicalrequirements.

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Anothermajorissueariseswhenstudentsgetcaughtinacatch22wherethe relevantDIACofficerwillnotissueavisauntiltheapplicantcanshowthateligible childrenhavebeenenrolledinschool.Buttherelevantstateeducationauthorities willnotenrolwithoutproofofvisaissue!Thismatterwasraisedwiththereviewin relationtootherclassesofapplicantaswell.Onecanimaginethefrustrationof mostAustraliansfacedwithtwoagencieswhoseapproachesensuredmutually unachievableoutcomes.Itmustbeevenmoreconfusingforapotentialvisitorfrom anothercountry.Thisissuewasraisedbystakeholdersinrelationtoothervisatypes andanyremedyshouldbeappliedmorebroadlythanjustforsubclass576visa holders. ThehealthandeducationprovisionsofAustraliasvisasystemmeetobjectivesthat wouldbebroadlysupportedbytheAustraliancommunity.Howeveritdoesappear thatexcludingpotentialstudentssolelybecausetheyhaveHIVorsomedisabilityisa rathertoobroadbrushapproach.Thispotentiallyexcludesstudentswhoarewell positionedtotakeadvantageofanAustralianeducationanduseittothebenefitof theirhomecountryupontheirreturn. TheAustralianGovernmentneedsaneffectivewholeofgovernmentapproachto theseissues.Thegovernmentneedstodecidewhoitispreparedtogivea scholarshiptoincircumstanceswherevisapolicysettingsarenotlikelytodenythe granteeavisa.AustralialooksfoolishifAusAIDawardsascholarshiponlytohave DIACrefusetoissueavisaparticularlyifrefusalisbasedonadisabilityorHIV grounds.Theseimportantissuesneedtoberesolved.Maybeitisthevisapolicy settingswhichneedtochange.PerhapsitisthepositionoftheDepartmentof HealthandAgeing(DOHA)whichneedsadjusting.Alternatively,AusAIDmightneed tochangeitsscholarshipparameters.Whateveritis,thereneedstobeacommon resolutionandacommonapproach.Asamatterofsomeurgency,therelevant agenciesincludingDIAC,AusAIDandDOHAneedtoworktogethertoestablishan integratedpolicy. TheissueofthelengthofvisaforPhDstudentswasraisedbyAusAIDonthesame basisasbytheHigherDegreebyResearchcommunity.InChapter6,Irecommend thatvisaarrangementsforHigherDegreebyResearchstudentsincludetheabilityto extendforsixmonthsinordertocovertheperiodbetweensubmissionofthethesis andthecompletionofexamination.ThisarrangementshouldalsoapplytoPhD studentscomingtoAustraliaundersubclass576. Recommendation15 ThatasamatterofsomeurgencyAusAID,DIAC,DOHAandotherrelevant AustralianGovernmentagenciesdevelopanintegratedpolicyinrelationtothe awardofscholarshipsandhowvisaarrangementsforawardeesaretobemanaged. Inparticulartheyshouldaddressthesituationofpotentialawardeeswhohavea disabilityorHIV.

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Recommendation16 ThatPhDstudentsenteringunderthesubclass576visahaveaccesstothesame extensionprovisionsrecommendedforHigherDegreebyResearchstudentsin Recommendation9,providedAusAIDispreparedtofundtheirextendedperiod. Recommendation17 ThatDIACandDEEWRmeetwithStateeducationauthoritiestoworkoutwhatcan bedonetoavoidthesituationwhereavisaforachilddependentcannotbegranted untilproofofenrolmentispresentandstateeducationauthoritieswillnotgrant suchproofuntilproofofvisagrantismade.Anyagreedremedyshouldapplyacross allstudentvisasubclasses.

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Chapter11 NonAward
Thenonawardsectorisasmallbutsignificantsectorcomprisingmuchofthe studentcohortundertakingfoundation(nonaward)courses.Italsocoversexchange studentsandotherstudentscomingtoAustralia.Theexchangeandotherstudents mainlyattendAustralianuniversitiesforasemesterorayearlongstudyexperience generallyknownas"studyabroad". Table11.1demonstratesthatthesegmenthasgrownsignificantlysince2002.The sectorpeakedin2009withasmalldeclinein2010.ThemostrecentmonthlyAEI datafortheYTDApril2011showsan8.3percentdeclineconfirmingthatthedecline thatbeganin2010hascontinuedinto2011.
Table11.1Enrolmentsinnonawardcourses20022010 2002 2003 2004 2005 2006 2007 2008 2009 2010 Enrolments 23,933 25,949 25,952 26,257 26,437 27,331 30,122 31,748 31,235 NumberofFoundation 4,522 5,119 5,146 5,669 6,326 7,564 9,222 10,207 10,173
Source:AEIStatistics

Thesectorisdominatedbytheuniversitieswithover80percentofenrolments occurringatauniversity.Halfoftheremainingenrolmentsaretoentitiesclosely associatedwith,orcontrolledby,universitiesprovidingfoundationcourses.There arealsoarangeofsmallerproviderssupplyingspecialisedtraining,forexample, aviationtraining.

Table11.2Enrolmentsinnonawardcoursesbynationality20022010someleadingnationalities Nationality 2002 2003 2004 2005 2006 2007 2008 2009 China 2,395 2,489 2,698 3,325 3,723 4,139 5,506 7,258 USA 7,788 8,992 9,164 8,718 8,135 7,880 7,837 6,958 Germany 1,131 1,566 1,785 2,009 2,168 2,401 2,513 2,328 Indonesia 1,057 1,073 891 711 657 693 720 826 SaudiArabia 7 14 14 27 100 149 480 919 Vietnam 148 103 152 168 202 256 466 787 Sweden 1,100 1,084 834 841 648 534 567 569 HongKong 1,798 1,626 1,121 732 722 1,106 1,073 716 Other 8,509 9,002 9,293 9,726 10,082 10,173 10,960 11,387 Total 23,933 25,949 25,952 26,257 26,437 27,331 30,122 31,748
Source:AEIStatistics

2010 8,358 6,460 2,280 913 885 831 542 325 10,641 31,235

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Table11.2demonstratesthatwhilethetopthreenationalitieshavechangedover theperiod2002to2010theyhavecollectivelymadeupjustover50percentof enrolmentsduringtheperiod.SignificantgrowthhasbeendeliveredbyChinese studentswhomakeupoverhalfofallfoundation(nonaward)courseenrolments. Americansmakeupthesecondlargestcohortalthoughtheirnumberspeakedat over9,000in2004andhavebeensteadilydecliningsuchthattheyrepresented almost6,500enrolmentsin2010. Foundationcoursesarenotanendinthemselves.Theyareessentiallyastepping stonetoauniversitycourse.Individualuniversitieshavetheirownarrangements withavarietyofeducationproviderswhotheyrecogniseasconductingappropriate foundationcourses.Someofthesefoundationprogramsarerunbytheuniversities themselves,othersbyprovidersthattheuniversitiesarecloselyassociatedwith, somebymoreindependentproviders.TheimplementationofNationalStandards forFoundationProgramsapprovedbytheMinisterialCouncilonTertiaryEducation andEmploymentisawelcomedevelopmentinqualityassuringsuchprograms. Inpracticeafoundationprogramsmainvalueliesinitbeingrecognisedfor progressiontoahighereducationprogram.Theresnotalotofpointlayinga foundationifyoudontgoontobuildastructure!TheproposalssetoutinChapter5 forstreamlinedtreatmentfortheuniversitysectorincludetheabilitytopackage ELICOSandfoundationcourses.Ifadoptedthoserecommendationsshouldfacilitate thevisaprocessforstudentsstudying(nonaward)foundationcourseswherethe courseispackagedwithauniversitycourse. Australianuniversitiesincreasinglyencouragetheirstudentstospendasemesteror ayearstudyingoverseas.Thisbroadensthestudentshorizonsbotheducationally andculturally.NotsurprisinglyAustralianuniversitieshavebothaninterestandan obligationtohostexchangestudentsfromothercountries.Theseexchangesare generallyrevenueneutralfortheuniversities.Mostexchangestudentspayfeesin theirhomecountrynotwheretheyundertaketheirexchange.Buttheseexchanges helpbuildenduringlinksbetweenuniversitiesaswellasdisseminatingavery positiveviewoftheAustralianuniversityeducationalexperience. Asthenatureofhoweducationisconductedevolves,itseemslikelythatincreasing numbersofstudentswillwanttoundertakepartoftheireducationatanother universityinadifferentcountry.Australiansundoubtedlywouldliketoseeour studentstreatedwelloverseasandwehavearesponsibilitytoreciprocate. Thereforeitisappropriatetoextendthestreamlinedprocessingarrangementsto thosestudentswhocometoanAustralianuniversitytoundertakestudyaspartof theirhomeuniversitysdegree.Theshorttermnatureoftheirstudyplusthefact thattheyareenrolledinandprogressingthroughtheirhomeinstitutions,suggests thattheyareaverylowriskcohort.

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Recommendation18 ThatstudentscomingforsemesteroryearlongnonawardcoursesatanAustralian universityaspartoftheirhomeuniversitiesdegreeand/oraspartofanagreed studentexchangebetweenuniversitiesbegivenaccesstostreamlinedprocessingas outlinedinRecommendation3.

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 THISPAGEINTENTIONALLYLEFTBLANK

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Chapter12 IntegrityMeasures
Toagreaterorlesserextent,everysectorofinternationaleducationisvulnerableto peopletryingtorortthesystem.Therearetwomainareaswherepeoplewith ulteriormotivesmightattempttounderminetherules.Sometimestheyaredistinct areas,sometimestheyareconnected. 1. ObtainingPermanentResidence WantingtobecomeapermanentresidentofAustraliaisnotabadthinginitself. Almosteveryonewholiveshere(meincluded)thinksthisisawonderfulplacetolive, arguablythebestcountryintheworld.Andmigrationitselfisaverypositivething. Australiaisanationofmigrantsandthedescendantsofmigrants.Throughoutthis ReportIhavetriedtoshyawayfromusingtheterm"migrationrisk".Thattermis commonlyusedwhenDIACofficersandothersinvolvedinthefieldtalkabout potentialrorts.Nowwhilethereisrobustdebateabouttheappropriatesizeof Australia'smigrationprogram,almosteveryoneagreesthatsomemigrationis desirable.Theargumentstendtobeabout"who","how","when",and"how many"?Usingtheterm"migrationrisk"suggeststhatifsomeonedoesmigratethen thatissomehowabadthing.Infact,whatpeoplewhousethattermreallymeanis thatthereisariskthatsomeonewillunderminetheintegrityofthemigration program.Thatisquitedifferent;unquestionablybadandsomethingallAustralians shouldbeconcernedabout. Manyprospectivemigrants,includinginternationalstudents,followtherulesand achievepermanentresidentstatus.Theyhavebehavedappropriately.Provided thattherulesaresensibleandtheyareproperlyadministered,thenthisisagood outcomeforAustralia.Bydefinition,theyarethemigrantswewanted.Itiswhen peopleseekto"getaroundtherules"(oroutrightbreakthem),thattheintegrityof themigrationprogramisundermined.Thereisriskwithanyvisasystemandit requirescontinualvigilanceanddexteritytominimisethatriskandmanageany issuesthatdooccur. 2. WorkingtemporarilyinAustralia Australiahasanumberofprogramswhichfacilitateshorttermemploymentfor residentsofothercountries.Forexample,thereisaworkingholidayvisa.Thereis alsothesubclass457visaprogramwhichisspecificallydesignedtoallowemployers tobringtemporaryworkerstoAustraliatofillshorttermskillshortages.

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ByglobalstandardswagesinAustraliaarerelativelyhigh.Comparedtolessaffluent countriesinourregion,wagesforsemiskilledandunskilledworkersareveryhigh indeed.Thisisanobviousattractionforthoseseekingbothpermanentmigration andatemporaryperiodofworkinAustralia.Sometimesthetwocategoriesoverlap. ApersonmaycometoAustraliawiththeintentionofrortingthesystemtoworkand latertryandusethevariouslegalandappealprocessesavailabletogainpermanent residence.Butthereisalsoadistinctgroupwhoareheretomakeasmuchmoney astheycanforaslongastheycanandthenreturnhome. Suchbehaviourdoesnotmakethesepeopleinnatelyevil.Manyofuswould contemplatedoingthesamethingifwewereintheirshoes.Butthisdoesnotmean thatAustraliashouldallowsuchthingstooccur.Ifpeopleenteronastudentvisa withtheintentionofworkingratherthanstudying,thisunderminesoursystemat severallevels.Itcompromisesthestudentvisaprogram.Itunderminesthe deliberate,orderedprogramsfortemporaryworkerslikethesubclass457visa.It potentiallyunderminesthewages,conditionsandoccupationalhealthandsafety protectionsofAustralianworkers.Anditoftenleadstoexploitationoftherorters themselvesbyunscrupulousemployersandagents. Underthecurrentvisaarrangementsmostinternationalstudentsareallowedto work20hoursperweekduringtermtime,andunlimitedhoursduringholiday periods.Withtwosmallexceptions,thisreportrecommendsacontinuationofthese rules.ThefirstexceptionrelatestoHigherDegreebyResearch(HDR)studentsand wasoutlinedinChapter6.Thesecondisasmallchangetoadjuststudentwork rightsto40hoursperfortnightratherthan20hoursperweek.Thisisconsistent withthemannerinwhichAustraliaassessesextraearningsforarangeofdomestic socialsecuritypayments:welookatwhathappensoverafortnightnotsimplya week.Internationalstudentsinvolvedincasualworkoftenmightberequiredat shortnoticetoworkafewextrahoursonaparticularshift,orfillinforsomeone whoissick.Intheshorttermthatcouldincreaseaparticularweek'sworkhours beyondthe20hourlimit.Currentlythestudenthastwochoiceswhenfacedwith suchasituation: refusethework,whichmightaffectwhetherornotanycasualworkisoffered inthefuturetosomeoneso"uncooperative"; OR accepttheworkandbeintechnicalbreachoftheworkrulesandtherefore theirvisaconditions.

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Thereisanecdotalevidence,particularlyfromtradeunions,thatthemost unscrupulousemployersexploitinternationalstudentsoncetheyagreetoaninitial breachoftheirworkrights.Suchemployersthendemandallsortsofthingsfrom theirinternationalstudentemployeesworkatreducedwages,breachesof occupationalhealthandsafetyconditions,evensexualfavours.Ineffect,the internationalstudentsareblackmailedbythethreatoftheemployerreportingthe studentfortheirinitialbreach.Underthecurrentrulesareportedbreachofwork rightscanleadtoamandatorycancellationofthestudentvisa(moreaboutthat laterinthischapter).Changingthearrangementsfrom20hoursperweekto40 hoursperfortnightwon'tsolvealloftheseproblemsbutitwillhelpatthemargin. Beyondthetwoexceptionsoutlinedabove,the20hoursworkrightsruleshouldbe maintained.Bythestandardsofourcompetitorcountries20hoursperweekis generous.Idonotendorsethosesubmissionswhichargueforanincrease. However,itisessentialthatwerecognisehowdifficultitisinpracticetoenforcethe 20hourworkrightsrule.Firstly,DIACdoesnothaveaccesstothetaxationrecords ofindividualinternationalstudents.Secondly,evenifDIAChadsuchaccess,the complexityandtimelagsinvolvedwouldmakeitextremelydifficulttoisolate breachesbyindividualstudents.Thecostsofdoingsoarelikelytofaroutweighthe benefits.Thirdly,andprobablymostimportantly,theworstbreachesarenoteasily detectablefromaccessingrecords,preciselybecausetheyinvolvenorecords. Anecdotalevidencefromstudents,industryassociationsandtradeunionssuggests thatthebiggestproblemsareinthe"casheconomy". Themostconcerningsituationsinvolve"students"workingfulltimeforlessthanan awardwage,paidincashbyemployerswhohavescantregardforoccupational healthandsafetyrequirements.Intheworstinstancestheserortsinvolvethe collusionofanunscrupulouseducation"provider".Irecentlymetaformer internationalstudentwhotoldmehestudiedInformationTechnologyata(now defunct)privatecollegeatGriffith.That'sGriffiththeNewSouthWalesinlandtown notGriffiththeQueenslandbasedpublicuniversity.Theformerstudentadmitted thathehadverylittleformaltuitionbutdidexperiencealotofseasonallabouring work.Hepickedupfruitnotaqualification.And,ofcourse,hewaspaidincash. ComingtoAustraliaonastudentvisawiththeintentionofworkingratherthan studyingcanbeagoodfinancialoptionforapersonfromacountrymuchless affluentthanAustralia.SomeVETsectorcoursesareamazinglycheap.Itispossible tofindoneyearcourseswherethefeesareunder$6,000andtwoyearcoursesfor lessthandoublethatfigure.Evenwithairfares,visaandrelatedcharges,thisisstilla verycheapwaytoenterAustralia.Therearepeoplesmugglerswhochargemoreto putpeopleonleakyboatswithnocertaintyofeverreachingtheAustralian mainland!Evenifthepayisbelowawardwageratesbut"cashinhand"an unskilledorsemiskilledworkercanfindthewholetransactionquitelucrative.Itis certainlymuchmoreprofitablethanworkinginamenialpositionathomeandfar morelucrativethanbeingaguestworkerintheMiddleEast.

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Thischapterdealswithfivegroupsofintegritymeasuresdesignedtoreducetherisk ofboththemaintypesofrorts:thosedesignedtoobtainpermanentresidence;and thosedesignedjusttowork. A. NEWCRITERIAFORSTUDENTVISAS

Chapter4entitledTheFoundationStone,setsoutamoresensibleframeworkfor assessingstudentvisaapplications.Itfocusesonchangestoensurethatthestudent isagenuinetemporaryentrant.Butitalsoretainsthecriterionofgenuinestudent. Theformershouldbeusedtorejectthosewhoareunlikelytoreturnhomeafter completingacourseinAustralia.Thelattershouldbeusedtorejectthosewhose realintentionisnottostudyatallbuttoworkinAustralia.Asoutlinedinthe PrinciplesWhichUnderpinThisReport(Chapter2),thebestplacetostoppeoplewe don'twantbeinginAustraliaisoffshore.Thebiggerthecohortofpotentialrorters whomakeittoAustraliathenthebiggertheproblemwillbeandtheharderitwillbe todealwith. B. DEPENDANTS Australiaisacountrywhereallmajorpoliticalpartiespubliclyarticulatetheir supportfor"familyvalues".Consistentwiththeseviewswehavebeengenerousin allowinginternationalstudentstobringfamilymemberswiththemwhilestudyingin Australia.Atfirstblushthisseemsagoodandsensiblethingtodo.Unfortunately, therealityislessrosy.Whenaspouseisaddedtomoststudentvisaapplicants,that spousereceivesthesameworkrightsasthestudent.And,aswehaveseenabove, thatmeansthesamecapacitytobreachthoseworkrightscombinedwiththesame difficultiesofdetection.

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Table12.1Numberofstudentvisasgrantedtoprimaryandsecondaryapplicantsbysector 200708to20102011 FinancialYear Primary Secondary Ratio 570IndependentELICOSSector 200708 200809 200910 201011to31/03/11 571SchoolsSector 200708 200809 200910 201011to31/03/11 572VocationalEducationandTrainingSector 200708 200809 200910 201011to31/03/11 573HigherEducationSector 200708 200809 200910 201011to31/03/11 574PostgraduateResearchSector 200708 200809 200910 201011to31/03/11 575NonAwardSector 200708 200809 200910 201011to31/03/11 576AusAIDorDefenceSponsoredSector 200708 200809 200910 201011to31/03/11
Source:DIACstatistics

28562 33776 31982 20505 16963 14103 12498 7216 59951 83694 58360 37909 115410 118290 107185 75985 4320 5071 5512 4061 20536 18799 17951 10697 2615 2540 2699 2276

1965 2676 3260 2124 31 36 29 17 8621 20095 13670 9552 14961 15570 11819 8986 2631 3264 3829 2768 245 200 188 93 1904 1518 1517 1252

0.07 0.08 0.10 0.10 0.002 0.003 0.002 0.002 0.14 0.24 0.23 0.25 0.13 0.13 0.11 0.12 0.61 0.64 0.69 0.68 0.01 0.01 0.01 0.008 0.73 0.60 0.56 0.55

Table12.1abovesetsoutthenumbersofstudentvisasgrantedtoprimaryand secondaryapplicantsinthelastfourfinancialyears,includingtheratioforeach sector.Thatratiovariesquitedramaticallybetweendifferenteducationsectors. ThehighestpercentagesareintheAusAIDorDefenceSponsoredandthe PostgraduateResearchsectors.Thisisneithersurprisingnoraconcern.These studentsaregenerallyolder,sponsoredbygovernments,andbringtheirfamilies withthem.Theyareallverylowriskgroupsintermsofthreatstotheintegrityof Australia'smigrationrules. TheHigherEducationandindependentELICOSsectorshaverelativelylowratios around0.07to0.13dependinguponthefinancialyear.

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ItistheVETsectorwhichhashadthebiggestcomparativerise.Theretheratio increasedsubstantiallyfrommid2008onwards.In2007/8itwas0.14butitisnow 0.25.Table12.2belowsetsoutthebreakdownofprimaryandsecondaryvisasfora rangeofcountries.

Table12.2Numberofstudentvisasgrantedtoprimaryandsecondaryapplicantsbycountry 200708to20102011 FinancialYear Primary Secondary Ratio China,PeoplesRepublicof 200708 200809 200910 201011to31/03/11 India 200708 200809 200910 201011to31/03/11 Korea,South 200708 200809 200910 201011to31/03/11 Brazil 200708 200809 200910 201011to31/03/11 Malaysia 200708 200809 200910 201011to31/03/11 Indonesia 200708 200809 200910 201011to31/03/11 SaudiArabia 200708 200809 200910 201011to31/03/11 Nepal 200708 200809 200910 201011to31/03/11 LibyanArabJamhiriya 200708 200809 200910 201011to31/03/11 Source:DIACstatistics 48371 53592 52498 35852 39612 50112 23273 14253 16706 14687 13529 8267 10378 11439 10349 6769 9648 10487 9640 7159 6916 7290 7230 5095 3587 4396 4065 3187 8628 10407 4678 4247 135 165 625 426 1502 1739 2043 1475 8099 15404 6553 4855 2613 2664 2887 1753 716 1086 1112 600 974 1058 1003 575 1308 1391 1499 1026 2574 3233 3253 2509 1630 3588 1395 1534 174 261 697 548 0.03 0.03 0.04 0.04 0.20 0.31 0.28 0.34 0.16 0.18 0.21 0.21 0.07 0.09 0.11 0.09 0.10 0.10 0.10 0.08 0.19 0.19 0.21 0.20 0.72 0.74 0.80 0.79 0.19 0.34 0.30 0.36 1.3 1.6 1.1 1.3

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Thedifferenceintheratiosbetweenthetwolargestsourcecountriesfor internationalstudentsisquitestark.Chinahasaratioof0.04inthefirstnine monthsofthisfinancialyear.Indiabycomparisonhasaratioof0.34.Nepalhasa similarratio,0.36.ThehighestratioisfromLibyabuttheseareprimarilythefamilies (spousesandchildren)ofHDRstudentsongovernmentscholarships.TheIndianand NepalesesecondaryvisaholdersareprimarilythespousesofVETstudents.Before thegovernmentintroducedarangeofintegritymeasuresin200910therehadbeen massivegrowthinstudentnumbersfromtheIndiansubcontinent,primarilyinthe VETsector.Thegrowthinspousenumbersmirroredthepreviousupsurgeinstudent numbers.Andithassufferedthesamedeclines. TherearecertainlyspousesofstudentswhocometoAustraliaaspartofagenuine andlovingrelationship,whoobservealloftheconditionsrelatingtothevisa (includingthelimitationonthenumberofhoursworked)andwhowillreturnhome attheendofthevisaperiod.Thesearethespousesthatthesecondaryvisafor dependantsisdesignedtoassist.However,therearealsospouseswhoareparties toa"marriageofconvenience"wholiveindifferentlocationstotheirspouse,work fulltime(usuallyforcash)andhopetoneverleaveAustralia. Baseduponthecurrentresearchdata,ormorecorrectlythelackofit,itis impossibletoquantifyhowmanyspousesareingenuinerelationshipsandhow manyareinvolvedinshammarriages.Itisalsoimpossibletosayhowmanyin genuinemarriagesarestillrortingthesystembyworkingillegally.Theproblemof identifyingshammarriagesisespeciallyhardwhenmostofthestudentsbringing spousestoAustraliaarefromcountrieswherearrangedmarriagesarethenorm.It isextremelydifficultforDIACofficerstotryanddistinguishbetweenwhicharranged marriagesaregenuineandwhicharrangedmarriagesareasham. However,therearegrowingconcernsamongDIACofficersbasedinthe subcontinent.Newspaperadvertisementsformarriagepartnerswhichtrumpetthat theadvertiserhasactualorpotentialaccesstoaninternationalstudentvisaare worrying.Sotooarecommentsbyseniorgovernmentofficialswhoreferto"the reversedowryscheme.DIACofficersinsomeoverseaspostsarenowseeing increasingnumbersofyoungmen,whohadtheirownapplicationsforstudentvisas rejected,reappearingasdependentspouseapplicants. Thereareincreasingconcernsthat"dependentspouses"couldbecomethenew studentvisarort.Ithasthepotentialtobethenewbackdoorroutetoworkin Australiaandperhapsalsothenewbackdoorroutetotryandexploitthesystemfor migrationpurposes.TheUKhasfacedasimilarprobleminrecentyears.Itrecently respondedwithsometoughnewrules: novisasfordependantsareallowedunlessthestudentisundertaking postgraduateeducationatahighereducationprovider;

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theonlyexceptionisforgovernmentsponsoredstudentswhoarestillableto bringspousesorpartnersandchildrenundertheageof18.

WhileIhaveseriousconcernsaboutthepossibleexploitationofthecurrent Australianrulesfordependants,Iamnotatthisstagepreparedtorecommendthat AustraliaimplementtheUKinitiatives.Thereareseveralreasonsforthis: (i) Whiletheratioofsecondaryvisastoprimaryvisaholdersremainshighfor certaincountriesandcertainsectors,theabsolutenumbersofsecondaryvisa holdersfellin2009/10.Thispatternwascontinuedinthefirstninemonthsof the2010/11financialyear.Inpracticalterms,fewerstudentsinthehigherrisk cohortshavesimilarlymeantfewerspouses; (ii) IfthechangestothecriteriaforastudentvisasetoutinChapter4ofthis Reportareimplemented,thatshouldreducethenumbersofhighrisk students.Quitelikely,thoseintegritymeasureswillalsoreducethenumbers ofnongenuinespouseapplications.Thismayreducethepotentialsizeofthe problem. (iii) Thereisnotsufficientharddataonwhichtobasesuchamajorpolicydecision todramaticallyreducethedependantentitlementforstudentvisaholders. Althoughthereisanincreasingamountofanecdotalevidence,thereisalack ofseriousrigorousresearch. However,thisisanareawhichrequiresextremevigilanceinthenextfewyears.IfI hadtospeculateontheareawherethe"nextrort"willemerge,thenIwouldsayit wouldmostlikelybeintheareaofdependants.Andwhileitismorelikelytobe closelyassociatedwithstudentswhoarenotthemselvesgenuinestudentsor genuinetemporaryentrants,ithasthepotentialtobemorewidespread. Norisitnecessarilylikelytobeconfinedtoanyparticulareducationsector.For example,considerthepotentialcaseofayoungwomanfromthesubcontinentwho isagenuinestudentundertakingafouryearuniversitydegreeandwhohasevery intentionofreturninghomeattheconclusionofthestudies.Itisstillpossiblethat shecouldenterintoashamarrangedmarriagewithapartnerwhosemainattraction isthathewouldpayheruniversityfeesthe"reversedowry"mentionedabove. Theywouldneverlivetogether.ThehusbandwouldenterAustraliawiththe intentionofworkingfulltime,mostlikelyinthecasheconomy,possiblywithno intentiontoeverreturnhome. Quitefranklywedonotknowhowbigaproblemthisis.DIACneedstobemuch moreproactiveincollectingtherelevantdata.Italsoshouldtargetintegrityand complianceresourcestoinvestigatethisarea.Shouldtherecommendationsinthe nextsectionaboutprioritisingenforcementactivitiesbeimplemented,thenthat shouldfreeupresourcesforsuchinvestigations.DIACalsoshouldliaisewithother organisations,particularlytradeunions,theFairWorkOmbudsmanandFairWork Australia,theOverseasStudentOmbudsmanandstateandterritoryombudsmen whomighthelpidentifyimproperworkpractices. 90

 Iftheevidencedoesshowwidespreadabuse,orevenasignificantlyrisinglevelof abuseoverthenexttwelvemonths,thenthegovernmentshouldseriouslyconsider implementingsimilarreformstotherecentUKinitiatives. Recommendation19 ThatDIACundertakespecificresearchtargetedatintegrityandcomplianceissues intostudentvisaoutcomes,includingbothprimaryandsecondaryapplicants,to informpolicydevelopment. Recommendation20 ThatDIACbeappropriatelyfundedtofurtherdevelopresearchcapabilityacrossthe program. Recommendation21 ThatDIAC,totheextentpermittedbylegislation,cooperatewithitscounterparts acrossalllevelsofgovernmenttofacilitateinformationsharing,toinformevidence baseddecisionmaking. Recommendation22 Intheeventthattheresearchoverthenext12monthsrevealssystemicabuseof dependant(secondaryapplicant)visas,thatthegovernmentseriouslyconsider mirroringtherecentUKpolicyandrestrictdependantvisastoMastersandabove coursesunlesstheprimaryapplicantissponsoredbyagovernment. C. ENFORCEMENT

ThroughoutthisReportIhavetriedtomakethingscomprehensibletothegeneral readertotryandsimplifyasfaraspossiblethetechnicaltermsandcomplexity whichbedevilsthisarea.WhetherornotIhavesucceededinthisregardisamatter foryoutojudge.However,Ishouldacknowledgethatthisnextsectionisthemost complicatedandtechnicalpartoftheentireReport.Itisextremelyimportantbut alsoextremelydifficulttosimplify. Attheoutsettherearefiveessentialconceptstobeawareof.(Aflowchart encapsulatingthefiveelementsoftheprocessisatAppendix6). 1. PRISMS

TechnicallythisistheProviderRegistrationandInternationalStudent ManagementSystembutIhaveneverheardanyonecallitthat.PRISMSis thenameofthecomputersystemintowhichstudentsdetailsareentered.It ismanagedbyDEEWRbutalsoaccessedbyDIAC,educationproviders,agents andregulators.

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WhenastudentenrolswithanAustralianeducationprovider,thedetailsare enteredintoPRISMS.Ifastudentcompletesthecoursesatisfactorily, withoutbreachingtheconditionsoftheirvisaandwithoutmakingany variationstotheircourseofstudy,thatisprettymuchitsofarasPRISMSis concerned.Theonlyadditionalentrywouldbethedatewhenthestudent completedthecourse. Any"badbehaviour"forexamplefailingthecourse,notturningupto classesetcisalsosupposedtobeenteredintoPRISMS.Ofcourse,thiscan onlyhappeniftheeducationprovidermakessuchinformationavailable. 2. STUDENTCOURSEVARIATION(SCV)

Ideallyastudentenrols,attendsclasses,passestherelevantassessments, andthencompletesthecourse.Wheneveranythingdifferenthappensthe educationproviderismeanttonotifyDEEWR.Thatinformationiscalleda StudentCourseVariation(SCV).Notonlydothesenotificationscovermajor problems,likefailingthecourseornotattending,theycanalsoinclude relativelyminormatterssuchasastudentchangingtoadifferentcoursewith thesameprovider. 3. NONCOMPLIANCENOTICE(NCN)

Theproviderregistersinformationaboutachangetoastudentsrecordasan SCVonPRISMS.Most,butnotallofthisinformationisthenrelayed,via DEEWR,toDIAC,whereitturnsintoaNonComplianceNotice(NCN).The actualprocessbywhichareportedproblemanSCVturnsintoanNCNis complicated.TherearetwosortsofSCV("unsatisfactoryattendance"and "unsatisfactorycourseprogress")whichareimmediatelyconvertedintoNon ComplianceNotices.TheseareknownrespectivelyasNCN8andNCN10.A further19SCVsareautomaticallyconvertedintoNCNsafter28daysunless therehasbeenasatisfactoryresolutiontotheissuebeforehand.AllNCNs placewhatDIACcallsa"decisionbar"onthestudent'simmigrationrecord. ThatmeansthatnofurthervisacanbeissuedunlesstheNCNhasbeen resolved.Italsomeansthatthestudentcannotelectronicallylodgeanew visaapplicationwhiletheNCNisunresolved. 4. AUTOMATICCANCELLATION

Sofarthesequenceisthattheprovidermakestheinitialnotification,theSCV iscreated,andthentheNCNcomesintoexistence.ForthetwoSCVswhich automaticallyturnintoNCNsNCN8("unsatisfactoryattendance")andNCN 10("unsatisfactorycourseprogress")thereisanotherstep.Unlessthe studentreportstoDIACwithin28dayswithproofofexceptional circumstancesbeyondthevisaholderscontrol,thenthesetwoNCNsand justthesetwoturnintoautomaticcancellationofthestudentsvisa.

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5.

MANDATORYCANCELLATION

Automaticcancellationiswhereacertainchainofeventsstartsandunless somethingintervenes(moreaboutthatbelow)thatchainendsautomatically inacancelledvisa.Lefttoitsowndevices,theprocessjustkeepsrollingon "byoperationoflaw". Mandatorycancellationisabitdifferent.Whencertainbreachesofvisa conditionscometoDIACsattention,thedepartmentmustcancelthe studentsvisa.ThereisasmallinterveningstepwhereDIAChastomakesure thatthebreachwasnotduetoexceptionalcircumstancesbeyondthe student'scontrol.Inpracticethedefinitionofexceptionalcircumstancesis verynarrow,butdoesincludeprovidererror.Forexampleitmightcover politicalupheavaloranaturaldisaster.Unsuitabilityofthecourseforthe studentorthestudentforthecoursewouldnotqualify.Thiscanleadto someveryunfairoutcomesandcausesconsiderablestress,notjustforthe studentbutalsoforDIACofficersinvolved. Astudentreportedforworkinginexcessof20hoursperweekisalsosubject tomandatorycancellation.Legally,aDIACdecisionmakercannottakeinto accountexceptional,compassionateorcompellingcircumstancesifsomeone isfoundtohaveworked21hoursinjustoneweek.Theofficerhasno discretionunderthecurrentrules:thevisamustbecancelled.My recommendationthatallowableworkinghoursbeassessedas40hoursper fortnightratherthan20hoursperweekshouldhelpwiththisissue,butwill notofitselfaddresstheproblemscausedbythemandatorycancellation provision. Tofurthercomplicatematters,somethingswhichleadtoautomatic cancellationcanalsobethingswhichleadtomandatorycancellation.Butnot everythingwhichmustleadtomandatorycancellationifDIACbecomes awareofitisalsoontheautomaticcancellationtrack.Forexample,the instanceofastudentworkingmorethan20hoursperweekdoesnotleadto automaticcancellation.However,ifDIACbecomesawareofitthenitmust leadtomandatorycancellation. Conceptually,thestudentvisacancellationprocessesarepeculiar.Inpractice theygiverisetodistortedoutcomeswhichparadoxicallyaremorelikelyto increaseriskratherthanreduceit. AsageneralrulethecancellationofvisasissuedbyDIACisadiscretionary process.Thereareonlythreeexceptionswhichinvolvemandatory cancellation.TheseareprescribedintheMigrationRegulations: wheretheholderspresenceinAustraliashouldnotbepermittedon thegroundsofprejudicetointernationalrelationsorsecurity;

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whereanoverseasstudentisinbreachofvisaconditionsrelatingto academicprogress;and whereastudentisinbreachoftheirworkconditions.

Quiterightly,apersononanyvisashouldberemovedfromAustraliaifthey areasecurityrisk.Thatappliestotourists,temporaryworkersandstudents alike.Butstudentsaretheonlygroupwhichisalsosubjecttomandatory cancellationforotherreasons. Inpracticethisisanespeciallymessyarrangement: Thesystemisoverloadedwithnoncompliancenoticesgenerally.In recentyearsenormouspressurehasbeenplacedonDIACsstudent complianceregimebythedramaticincreaseinthenumbersof overseasstudents.Thispressurehasexposedunderlyingissueswith theDIACstudentcomplianceregimeitself,especiallyinthewaythat theconstantflowofNCNsisrespondedto. ThenumberofNCNsdoubledinthefouryearsbetween2006and 2010,reflectingthegrowthintheinternationaleducationsector.This hascreatedanenormousbacklogofNCNsthatDIACofficershavenot hadanopportunitytoinvestigate.Attheendof2010DIAChadover 287,000outstandingNCNs(someofwhichwere10yearsold).Inthe firstthreemonthsof2011morethan30,000newNCNswerecreated everymonth.Inmanycases,duetotheworkload,theonlytimean NCNisdealtwithbyDIACstudentcompliancestaffiswhenthestudent appliesforanothervisa.Whenthishappens,becausetherearelimited resourcestoinvestigate,itisrareforanofficernottoliftthedecision bar,exceptinthecasesofNCNs8and10whereautocancellationhas alreadybeeninitiated. ItisalsocloggedupwithNCNsrelatingtominorchangesratherthan seriousrisks.Despitetheterm"noncompliancenotice",manyofthese noticessimplyreflectchangestoastudentsstudycircumstancesrather thannoncompliancewiththeconditionsoftheirvisa.Ofthe21SCVs reportedtoDIAC,fiveareconsideredhighrisk("unsatisfactory attendance","unsatisfactorycourseprogress","noncommencementof studies","cessationorwithdrawalfromstudies"and"unsatisfactory welfarearrangements").Outof96,200SCVsinthefirstthreemonths of2011,only35percentfellintothehighriskcategories,withjusttwo percentbeingNCNs8and10.

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DIACstaffresourcesarepredominantlyallocatedtoautomatic cancellationnotices.Imagineyouareastudentandyougetanotice sayingthatunlessyouconvinceDIACofyourextenuatingcircumstances thenyourvisawillbecancelledin28days.That'saprettygood incentivetorushintoaDIACofficeassoonaspossible.Notsurprisingly, that'swhatalotofstudentsdo.AndoncetheyhavecontactedDIAC that"stopstheclock".Cancellationnolongermusthappenwithin28 daysactionissuspendeduntilDIACinvestigatesthestudent'sclaims. However,becauseNCNs8and10entailautomaticcancellation,upto 80percentofstudentcomplianceofficertimeistakenupdealingwith them.Whattimeremainstostudentcomplianceofficersisthen absorbedrespondingtorequeststoliftthe"decisionbar",oftenin relationtolowriskNCNs.ThusthehighriskNCNsthatdonotentail automaticcancellationarenotprioritisedforinvestigation.DIAC complianceofficersarespendingmuchoftheirtimefollowingupthe consequencesofthisprocesstothedetrimentoftheirinvestigationof oftenmoreseriousnoncomplianceactivity. Providersaregivenextraordinarypoweroverstudentsbybeingable toinitiateareportwhichleadstoautomaticcancellationofa studentsvisa.Providersaremeanttoassiststudentsbeforeany automaticcancellationprocessbegins.However,theincreasein automaticcancellationsinrecentyearshasbeendriven,inpart,bythe emergenceofsomeproviderswhowillusetheautocancellation mechanismcarelesslyorevenmaliciously.TheunreliabilityoftheSCVs fromsuchprovidershasbeengraphicallyillustratedinVictoria,where closerinvestigationofautomaticcancellationsbetweenJulyand December2010resultedinonly24percentfoundtobejustified,(with someprovidershavinga100percenterrorrate).Aftermeritsreview, thistotalreducedfurtherto19percent.Theprocesscanalsobe deleteriousforsomegenuinestudentswhomayhaveruninto difficultiesincopingwiththeircourseofstudyandrequirehelpand monitoringratherthanhavingtheirvisascancelled. Thecourtsarenotimpressed.Aswellasoftenresultingininequitable outcomes,automaticandmandatorycancellationforNCNs8and10 hasattractedcontinuedadversecommentaryintheFederalCourt.The majorityofautomaticcancellationdecisionshavebeenoverturnedby theCourt.DespitealargeinvestmentofresourcesbyDIACintothe autocancellationprocess,legalchallengeshavemeantthatbetween May2001andDecember2009theautomaticvisacancellationregime wasvalidforonlyfivemonths.AsreportedbytheAustralianNational AuditOffice(ANAO),DIACcancellationswereupheldonlyforafive monthperiod;allotherswereoverturned.Almost19,000students wereaffected,manyofwhomhadleftAustraliaduetotheautomatic cancellationoftheirvisaspriortothosecancellationsbeingoverturned.

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TherecentANAOReportexpressedseriousconcernsaboutDIACshandling ofthewholeNonComplianceNoticeregime.Isharethoseconcernsbutmy concernsgodeeper.ThecurrentsystemobligesDIACtoconcentrateits studentintegrityandcompliancestaffresourcesinareaswhichdonot constitutethegreatestrisk.InrealityDIAChasbeenoverwhelmedbythe hugevolumeofNCNsandhasnochoicebuttodealessentiallywiththetwo NCNswhichleadtoautomaticcancellation.Theopportunitycostofthisis thatDIACcannotdevoteitsresourcestothehighestriskareas.Thefollowing twoexamplesgiveanillustrationofhowdysfunctionalthesystemhas become. Example1 Astudentisstrugglingwithhisstudiesforanarchitecturedegreeatan Australianuniversity.Thestudentisverybrightbutlacksdesignflair.His teachersurgehimtoswitchtoengineeringwhichtheybelievewouldbe ideallysuitedtohistalents.Howeverthestudentinsistsonperseveringwith architecture,perhapsbecausethereisafamilyexpectation. Thestudentfailsseveralsubjectsandtheuniversityisobligedtoreporthim for"unsatisfactorycourseprogress".ThatinturnleadstoanNCN10being issuedwhichrequiresautomaticcancellationofthestudentsvisa.Notonly willthestudenthavetoleaveAustralia,butifheleavesduetoacancelled visahewouldnotbeeligibleforanotherstudentvisa(ormanyother temporaryvisas,includingavisitorvisa)foraperiodofthreeyearsunlesshe wereabletopresentcompellingorexceptionalreasons. Example2 AyoungmanentersAustraliaonastudentvisabuthisrealintentionisto workfulltimeand,ifpossible,neverreturnhome.OnarrivalinAustraliathis mangoesstraighttoworkforanemployerwhopayshimlessthanaward wagesbutalwaysincash.Henevercommenceshiscourse.Thecourse providernotifiesDEEWRandanNCNisgenerated.Buttheprocessstops there.AnNCNforfailuretostartacourseisnotoneofthoseNCNswhich leadstoautomaticcancellation. OverwhelmedbythenumberofNCNsgenerally,andforcedtoconcentrate onthosewhichleadtoautomaticcancellationofastudentvisa,DIACdoesn't havetheresourcestofollowupa"student"whoisdeliberatelyandseriously rortingthesystem.Thereisanecdotalevidencetosuggestthatsomeagents ofdubiousrepute,sometimesincollusionwithparticulareducation providers,areexploitingthissituation.

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Thecurrentenforcementarrangementsforbreachesofstudentvisasarea longwayshortofoptimal.Themandatorycancellationrequirementsare inequitableandleaveDIACwithoutthenecessarydiscretiontoconsider individualcircumstances.TheconveyorbeltofSCVsturningintoNCNsis inefficientandineffective.Thisisfurthercompoundedbytheautomatic cancellationprovisionswhich,inpractice,meanthatDIACresourcesare concentratedonabureaucraticimperativetothedetrimentofpursuinghigh riskcases. Whatshouldbedone? Currently,wehaveacomplianceregimethatisdrivenbythemechanicaloutputsof PRISMSratherthanbyanyconsciousandappliedconsiderationofrisk.DIACstudent complianceofficersspendmuchoftheirtimeremovingNCNbarsfromstudent recordsthatarguablyshouldnothavebeenthereinthefirstplace,anddealingwith thesometimesinequitableresultsoftheautomaticcancellationregime. ThereisapressingneedtoturnofftheNCNconveyorbeltandforDIACstudent complianceofficerstodevelopafarmorestrategicapproachtocombatingnon compliance.Firstly,theprocesswherebyanSCVautomaticallybecomesanNCN shouldbehalted.WhileitwouldmakesenseforDIACtocontinuetoreceiveallthe informationcurrentlyconveyedbytheSCVs,thisshouldbeusedstrategicallyto profilestudentsandinstitutionsofconcernratherthanmerelyaddingtotheNCN backlog.LowriskornoriskSCVs(egstudenttransferredtoanotherprovider) shouldbegivencorrespondinglylowattention.Resourcesshouldinsteadbe concentratedonthehigherriskSCVs(egnoncommencement). Aspartofamoretargetedandanalyticalapproach,DIACstudentcompliance officersshouldalsobroadentheirviewofnoncompliancebeyondtheoutputsof PRISMS.Forexample,PRISMSfocusesoncompliancewiththeESOSActandhas nothingtosayaboutmanykeyaspectsoftherisksofbreakingthemigrationrules. Seriousriskissueslikethepropensityofstudentsatparticularinstitutionstoapply forprotectionvisas,engageinshammarriages,overstaytheirvisasorworkinexcess oftheirvisaconditions,simplydontappearintheSCV/NCNregime.IfDIACwants tocatchmostinstancesofpeopleactivelyrortingthesystemtheyneedtobe proactiveintheirinvestigationsratherthansimplyfollowupthingsnotifiedby educationproviderstoPRISMS.Greateranalysisofriskfactorsshouldbecombined byDIACstudentcomplianceofficerswithPRISMSinformationinanewapproachto targetingparticularlyhighriskprovidersandstudents. Theautomaticcancellationofastudentsvisaispatentlynotworkingasa complianceandintegritytoolandisinfacthinderingtheeffectiveuseofavailable studentcomplianceresources.Automaticcancellationshouldthereforebe abolishedandNCNs8and10remainSCVSandusedaspossibleindicatorsofnon complianceratherthanasanendinitself.

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Analternativeapproach,involvinganexaminationofthestudentsstudyhistory, counsellingaboutmaintainingenrolment,andmeetingcourserequirementsshould beadopted.Recenttrialshaveindicatedthatthisisfarmoreeffectiveinresolving issues.Agoodexampleofthesortofcasewherethisapproachgivesabetter outcomeiswhereagenuinestudenthastakenacourseunderpressurefromtheir parentsbutinfactwouldbebettersuitedtoadifferentcourse.Helpingshiftthe studenttoamoreappropriatecoursegivesamuchbetteroutcomeforboththe studentandDIAC.Therecenttrialindicatesthatthemajorityofstudentstreatedin suchawaywillgoontosuccessfullystudyandcomplywiththeirvisas.Thetrialalso foundthatsuchanapproachismuchlessresourceintensiveforDIACthanthe currentautomaticcancellationregime. ThesensiblealternativetomandatorycancellationwhetheritisforNCNs8and10 orforbreachoftheworkconditionistogivegreaterdiscretiontoDIACdecision makers.Theycanthentakeallcircumstancesintoaccountwhenconsidering whetherornotthevisashouldbecancelled. Recommendation23 CurrentarrangementswherebySCVsautomaticallybecomeNCNsshouldcease.SCV informationshouldcontinuetobeconveyedtoDIACwhoshoulduseitasaninput intoamoretargetedandstrategicanalysisofnoncompliance. Recommendation24 Automaticcancellationofstudentvisasshouldbeabolishedandreplacedbya systeminwhichinformationconveyedbySCVsisusedasaninputintoamore targetedandstrategicanalysisofnoncompliance. Recommendation25 Themandatorycancellationrequirementforunsatisfactoryattendance, unsatisfactoryprogressandworkinginexcessofthehoursallowedshouldbe removed,givingDIACofficersthediscretiontodeterminecancellationinparticular casesontheirmerits. Recommendation26 DIACshouldconcentrateitscomplianceandintegrityresourcesinrelationtostudent visasonthehighestriskareas. Recommendation27 DIACshouldnotonlyrespondtoinformationgeneratedbyPRISMSbutalsobe proactiveindetectingthesortsofbreaches(forexampleshammarriagesand exceedingpermissibleworkhours)whicharenotreportedinPRISMS.

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D.

KEEPINGTRACKOFEDUCATION/MIGRATIONAGENTS

PRISMSstoreseightcategoriesofinformation.TheCRICOSRegisterstoresfourof thosecategoriesnamely; ProviderName ProviderLocation Courseoffered Contactdetails ThePRISMSDatabasestoresafurtherthreecategoriesnamely; Studentdetails Enrolmentdetails Studentcoursevariations(SCVs) Afinalcategoryrecordsorganisationsabletoaccessthesystem. TheoreticallythisdatashouldenableDIACandDEEWRtoexaminepatternsof behaviourinvolvingstudentsandtheireducationproviders.ElsewhereinthisReport Ihavedealtwithsomelimitationsoftheavailabledatagenerallyandaspecific issueisaddressedbelow.ButtheexistenceofdatainPRISMSwhichlinksan individualstudentwithanindividualproviderisanimportantbasefromwhichto start. Manyinternationalstudentsandmanyeducationprovidersuseagents.Itwouldbe usefultomonitorpatternsofbehaviourwhicharelinkedtoindividualagents.For exampleitwouldbeextremelyimportanttoknowifaparticularagentwaslinkedto alargenumberofstudentswhobreachtheirvisaconditions.Unfortunately,the collectionofdataonagentsismorehaphazardthanitisforstudentsandeducation providers.Whereastudentcomestoaproviderviaanagenttheagentsdetailsmay ormaynotberecorded.IftheagenthasaccesstoPRISMSandenteredthe studentsdetailsdirectly,thenthatconnectionwillberecorded.Howeverifthe agentsendsthestudentsdetailsontotheinstitutionwhichthenentersthedetails itself,theagentmaynotberecordedagainstthestudententry. ProvidersshouldberequiredtoenterintoPRISMSthenameofanyagentusedinthe recruitmentofeachindividualstudent.Mostlikelythiswillrequireachangetothe ESOSregulations.HopefullyitshouldnotinvolveanysignificantchangestoPRISMS. Ifthatisthecase,thenitshouldbepossibletoencourageproviderstovoluntarily entertheagentdataintheinterimperiodbeforeanyregulatorychangeis implemented. Recommendation28 Thatstudentworkentitlementsbemeasuredas40hoursperfortnightinsteadof20 hoursperweek

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Recommendation29 Thatthenecessarylegislativechangesbemadetorequirethenameofanyagent involvedtobeenteredintothestudentsdataintoPRISMS Recommendation30 ThatDEEWRtakestepstoencourageproviderstovoluntarilyenteragentdatainto PRISMSintheinterimbeforetheESOSActischangedtomakethismandatory. E. KEEPINGTRACKOFSTUDENTS

ObviouslythemoreinformationDIAChasaboutindividualstudents,thebetteritis abletomanagetheintegrityofthestudentvisaprogram.Theeasieritistoaccess suchdata,thenthemoreeffectiveanymonitoringwillbe.BothDEEWRandDIAC holdsignificantdataintheirrespectivecomputersystems.Eachstudenthasa uniquenumbertohelpidentifythemwithineachofthetwocomputersystems.The problemhereis:it'snotthesamenumber! Irecognisethatthereareaplethoraofhistoricalandcomputersystemreasonswhy thereisn'tacommonidentifierforeachindividualstudent.In2010therewereover 600,000internationalstudentenrolmentsinAustralia.Itreallyisabouttimethat theDEEWRandDIACsortedthisout. Recommendation31 ThatDEEWRandDIACestablishasinglestudentidentifiertotrackinternational studentsthroughtheirstudiesinAustralia.

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Chapter13 AssessmentLevels
Whenanapplicationforastudentvisaisbeingconsidered,oneoftheelements takenintoaccountistheAssessmentLevel(AL)fortheapplicant.Therearediffering requirementstobemetdependinguponwhethertheapplicantisAL1,AL2,AL3,or AL4.TechnicallythereisafifthlevelAL5butcurrentlynocountryhasbeen placedintothatcategory. ExactlywhichALcategoryaparticularapplicantisconsideredunderdependsupon boththeapplicantspassportcountryandthecourseproposedtobestudied.Every countryhasaratingbutitisnotthesameratingforeveryeducationsector.For example,apostgraduateresearchstudentfromIndiaissubjecttoAL2.AnIndian applicantforanundergraduateuniversitydegreewillbeconsideredagainstthe criteriaofAL3,andanIndianapplicantforaVETcoursewillbesubjecttoAL4. TherequirementsforanapplicantaredifferentforeachAL.Thelevelofproofof availablefundsrequiredisagoodexample.Anapplicantbeingconsideredunder AL1isnotrequiredtoprovideanyevidenceofthefundstheyintendtouseto supporttheirstayinAustralia.Allthatisrequiredisadeclarationthattheapplicant hasaccesstotherequiredfunds.Bycontrast,anAL4applicantwillhavetoshow evidencesuchaspersonalfunds(orfundsprovidedbyaclosefamilymember)ofa specifiedamountheldinabankaccountforsixmonths,tosupportthestudentfor theentiretyofthecourse. Theserulesarequitecomplicated.AsummaryisattachedasAppendix7.Generally, thelowertheALthenthelighterthetouchgivenbyDIACofficersinconsideringthe application.AllapplicantsirrespectiveoftheirALmuststillsatisfyessential requirementslikehavinghealthinsuranceandnotbeingasecurityrisk.Butinterms oftherisktoAustralia'smigrationcontrols,anAL1applicantisregardedasavery lowrisk.Thereforeapplicantsinthatcategoryrequireverylittleinvestigationand canbeprocessedspeedily.Bycontrast,anAL4applicantissubjecttomoreintensive assessment. ThecriteriafordecidingtheappropriateALforeachcountryandsectorarebasedon thepastperformanceofstudentsfromeachcountryinthedifferentcourse categories(HDR,VETetc).Therelevantcriteriaare: Rateofrefusalsofvisaapplications(nonfraud); Rateofrefusalsofvisaapplications(fraud); Rateofsubsequentapplicationsforprotectionvisas; Rateofsubsequentapplicationsforothervisas(egpartner,excluding protectionandskilledvisas); Rateofvisacancellationsfornoncompliance;and Overstayrate.

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AformulahasbeendevelopedbyDIACto"weight"thesedifferentcriteria. However,thereareseveralproblemswithusingthismodel: 1. ChangesintheALslagbehindthedatasometimesalongwaybehind.This isobviouslyaproblemforacountrywhich"deserves"tobepromotedtoa lowerALrating.Intheinterimperiodapplicantsfromthatcountryarenot beingtreated"fairly".ButitisamuchbiggerproblemforAustraliawhena countryneedstobeshiftedtoamuchhigherALcategorybutthereisa substantiallag.Duringsuchaperiodapplicantsfromthatcountrywouldbe assessedmoregenerouslythanobjectivelyshouldbethecase.Sometimes theseproblemscanbeslowtobecomeobviousunderthecurrentformula.For example,oneofthefactorsis"overstayrates".Inthecaseofstudents undertakingafouryearcourse,it'salongtimebeforeoverstayingthevisa periodbecomesapparent. Quitesmallchangesinactualbehaviourcanhaveahugeimpactona country'sALrating.Whiletheformulagivesproportionateweighttomostof thefactors,ittreatsapplicationsforprotectionvisasatfullvalue.Soevenif thestudentsofaparticularcountryareperformingexcellentlyonalmostallof theothercriteria,afewapplicationsforprotectionvisascoulddramatically changetheALrating.JustfourhighereducationstudentsfromtheUSapplying foraprotectionvisacouldsuddenlychangethewholeUSratingforhigher educationvisasfromAL1toAL4.Nowit'sprettyunlikelythatUSstudents wouldbeapplyingforprotectionvisas.Butthistheoreticalexampleshows howdramaticchangesinacountry'sratingcancomefromquitesmall individualchangesinbehaviour. The"objectivemeasures"don'talwaysgiveasensibleresult.Awartorn countrywithahistoryofviolenceandcorruptionwouldnotseemasensible placeforAustraliatorecruitstudents.However,ifAustraliapreviouslyhada smallnumberofstudentsfromthatcountryallofwhomhadgoodoutcomes, thenthatcountrywouldbe"entitled"toalowALrating.Largescale recruitmentfromthatcountrywouldalmostcertainlynotbeadesirablething forAustralia.Butintheshortterm,astrictrelianceontheALformulawould facilitatepreciselythatundesirableoutcome. Ontheothersideofthecoin,acountrywhosestudentsposerelativelylittle riskcanstillbeallocatedadisproportionatelyhighALbecauseoftheactionsof onepartofapreviousstudentcohort.TherecentAustralianNationalAudit Office(ANAO)reportiscriticalofDIACforgivingChinaalowerALforthe HigherEducationsectorthanittechnically"deserves"onastrictapplicationof theformula.TotheauthorsoftheANAOreportthissuggestedadecision influencedbyinterplaybetweenDIAC'sintegrityinterests;itsprogram objectiveofassistingthegrowthoftheinternationaleducationindustry;and itsinterestsinincreasedefficiencyinvisaprocessing.

2.

3.

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4.

However,itisatleastaslikelythatthedecisionwasinfluencedbygoodsense. ItrecognisedthelimitationsoftheALformulawhichvisitsuponanentire countrythemigration"sins"ofoneparticularsubsection.Inbothofthe instancesoutlinedabove,strictrelianceononlytheALformulawouldgivean aberrantoutcome. TheALsonlydistinguishbetweencountriesanddon'ttakeintoaccount differenceswithincountries.TalktoanyDIACofficerwhoisfamiliarwith studentapplicationsfromIndiaorChinaandtheywillprettyquicklytellyou thegeographicallocationsthatworrythem.TheriskprofileforafewIndian statesismuchhigherthanitisforIndiaasawhole.Andthedifference betweentheIndianstatesofmostconcernandthosestateswhoseapplicants areparticularlylowriskisstarkindeed.Similarly,theriskprofileofapplicants fromahandfulofChineseprovincesisdramaticallydifferenttothosefrom citieslikeBeijingandShanghai.MorepeopleliveintheBeijingmunicipalarea thanresideinmanycountries.ThosecountrieshavetheirownALbutBeijing hasthesameratingastherestofChina. ItisaseriouslimitationthattheALsarecountryspecificanddon'ttakeinto accountregionaldifferences. TheALsonlydistinguishbetweeneducationsectorsandnotindividual providers.JustastheALsdonotdifferentiatebetweenregionswithin countries,theyalsotreatalleducationprovidersinaparticularsectoras thoughtheycarriedexactlythesamerisks.AnindividualVETproviderwithan excellentrecordwillbeinthesamecategoryasanotherVETproviderwhich hasanextremelypoorrecord. AspartofthisReviewIconsideredthepossibilityofrecommendingashiftto riskratingallprovidersratherthanriskratingcountries.However,Iwasnot comfortabledoingso.Whiletheconceptisattractivethereareenormous practicalbarrierstoimplementingsucharegime.Forastart,thedatasuffers fromsimilarlimitationstothedataforcountriesthetimelagproblem,the disproportionateimpactofsmallchangesinbehaviourandoutcomeswhich arenot"sensible". Secondly,therelativelysmallsizeofsomeeducationprovidersmeansthat theseproblemsaremagnified.Smallchangesinbehaviourcanhave disproportionateimpactsondeterminingtheALforacountry.Verysmall changescouldhavehugeimpactsontheALforanindividualprovider, especiallyarelativelysmallprovider.Thirdly,itwilltakesometimebeforewe canproperlyassesstheimpactsonindividualprovidersofawiderangeof policyandadministrativechangesthathavebeenmade.Thisisparticularlythe casewithsmallprovidersinboththeVETandhighereducationsectors.

5.

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Forexample,considerthesituationofasmallVETproviderwhichinthepast washeavilydependentuponthestronglinkbetweenstudyandmigration. Whenthesystemvirtuallyguaranteedapermanentresidenceoutcomethere wasnoincentiveforstudentstoapplyforprotectionvisasortooverstaytheir studentvisas.Consequentlythatprovidercouldappeartohaveverylowrisk intermsoftheintegrityofthemigrationsystem.Whatwilltheprofileofthat sameproviderlooklikefollowingseveralgovernmentdecisionswhich dramaticallyweakenthelinkbetweenstudyandmigration?Itwilltakesome timetoestablishexactlywhatthebehaviourofstudentsatindividualproviders willbeunderthesechangedarrangements. Similarly,shouldthegovernmentintroducethechangesrecommendedinthis Reporttothecriteriaforastudentvisaitwillalsohaveanimpact.The introductionofexplicitcriteriaofwhetherornottheapplicantwouldbea genuinetemporaryentrantmightaffectthecohortrecruitedbyindividual providersbutitwilltakesometimebeforewecanproperlyassessthat behaviour.Ideally,ifthenewcriteriaareeffective,thenthehistoryof individualproviderswouldbecomelesscritical.Ifhigherriskapplicantsare stoppedbeforetheyaregrantedavisathenthisshouldreducetherateof overstaygenerally.Inthatnewenvironmentwhatmightbemoresignificant wouldnotbetheoverstayratebutthelinkbetweenindividualprovidersand highratesofvisarefusals. Itisnow10yearssincetheALframeworkwasintroducedintotheprocessing ofstudentvisaapplications.DIACofficersthemselvesacknowledgethatitisa fairly"blunttool"whichneedsanoverhaul.ItisalsotheviewoftheANAO thattheALprocessisstrugglingtocopewiththecurrentscaleandcomplexity oftheprogram.Evenwithintheexistingframeworkthereareobvious questionssuchas: IsthedifferencebetweenAL1andAL2worthpreserving? WhatisthepointofhavingAL5ifnooneevergetsallocatedtoit? CouldtheALsbecollapsedtothreelevelsofrisk;low,medium,high? DothefinancialrequirementsinAL3andAL4achievewhattheyare intendedtodo?

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Butbeyondthese,andother,specificquestions,thereisthebroaderissue:isanAL systemtherighttoolforthefuture?IamloathtorecommendinthisReportany tinkeringwiththeALsystemwhenIbelieveitneedsafundamentaloverhaul.One optionforthatoverhaulmightbetoabolishtheALsystemandreplaceitwitha morefinegrainedapproachtoassessingtheriskofindividualapplicants.Reviewing theALframeworkcannotbedivorcedfromabroaderdiscussionofhowbestDIAC officerscanassessrisk.TheexistingALsystemisverydated.Itwasdesignedfora differenttimewhenthenumberofapplicationsforstudentvisaswasmuchsmaller thanitistoday.ThewholeALframeworkshouldbereviewed. IdonotbelievethatsuchaReviewneedstobeledbyanindependentpersonfrom outsideofDIAC.InmyviewDIACitselfisquitecapableofundertakingsucha Review.Howeveritwouldbebeneficialiftherewasalsoanexternalpanelor referencegroupwhichcouldprovideinputintoareviewbyDIACoftheAL framework. Recommendation32 ThatDIACundertakeareviewoftheALframework,withamindtoeitherabolishing thesystementirelyormodifyingtheframeworktomakeitrelevanttocurrentand futurechallengesfacingthestudentvisaprogram.Thisreviewshouldbemanaged byDIACbutshouldincludereferencetoanexternalpanelorreferencegroup.

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Chapter14 Agents
Agentscanactonbehalfofanapplicantforastudent(oranyother)visa,helping prepareandlodgetheirapplications.Theycanalsoactasarecruiterofapplicants onbehalfofanAustralianeducationprovider.Someagentsonlyperformoneof theseroles;butsomeperformboth.Attheheightoftheboominstudentvisas, especiallyforVETcoursesleadingtopermanentresidence,someagentsoverseas foundalucrativenichemarketrecruitingeagerapplicantsforeagerproviders.This isnottosaythattheseagentswerenecessarilyactingunlawfullyorthatmany agentsdonotgivegenuineassistancetostudentsandeducationproviders.The pointis,iftheconditionsarecreatedforsomeagentstoactopportunistically,they willdoso. Seriousproblemswithagentsarisewhentheycreativelyassistapplicantsto"meet" theselectioncriteriaorwhentheyrecruitnaveapplicantsintocoursesrunby unscrupulousproviders.Weneedbettermonitoringofagentsandmoreeffective sanctionsagainstagentswhoactunethically. Whiletheextenttowhichtheyareemployedvariesamongeducationproviders, almosteveryprovidermakessomeuseofagents.Amajorityofstudents, particularlyinIndiaandChina,useagents.Itisnotobligatoryforanapplicanttouse anagentexceptiftheyarelodgingtheirapplicationelectronicallyfromoneofthe fourcountrieswhereAL24applicantscanaccesstheeVisasystem.Inthesecases theparticipatingagentmustberegisteredwithDIAC.RegistrationasaneVisaagent commitstheagenttoacodeofconduct,abrogationofwhichcanresultintheagent havingtheiraccesstotheeVisafacilitytakenaway.IshouldnoteherethatDIACs objectiveistoeventuallyextendelodgementtoallstudentvisaapplicants.IfDIAC retainstherequirementthatallAL24applicantswhoapplyonlinemustusea registeredagent,thiscouldgosomewaytowardsmonitoringandcontrollingthe conductoftheseagents.Thisisnopapertiger:arecentreviewbyDIACresultedin over200agentsinIndia,ChinaandAustraliahavingtheiraccesstotheeVisasystem suspended,includingforprovidingfraudulentinformationinsupportofastudent visaapplication. Thequalityofagentsvariesenormously.Atoneendofthespectrumaregroupslike IDP.Thiscompanyisownedby38AustralianuniversitiesandSEEKLimited,an onlineemploymentandtrainingcompany.IDPhasover40yearsexperiencein studentplacementservices. Attheotherendofthespectrumarecertainsoletraderswithnotmuchmorethana catchytitle,astringofpromisesandamobilephone.

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Agentsoffshorearefreetochargeapplicantswhattheylike,orwhatthemarketwill support.InAustraliatheycanalsosettheirownfeesbutthereisbettermarket information.TheOfficeoftheMigrationAgentsRegistrationAuthorityregularly publishestheaveragerangeoffeeschargedbyagentsinAustralia(currently between$400and$1800forastudentvisa). ThereisalsonolimitonthecommissionsthatagentsoverseascanchargeAustralian providersforrecruitingstudentstotheircourses.TheBairdReviewquotedone providerasstatingthatagentshavechargedupto50percentoftuitionfeesasa commission.TheBairdReviewalsonotedthatbothprovidersandstudentsraised concernsaboutthesecommissions.Someprovidersfelttheyhadlittlechoicebutto paythemandlittleinfluenceovertheseagents.Ifsomeprovidersuseagentswho chargethemexorbitantfees,itisreasonabletoassumethatthequalityofthe educationofferedbytheseproviderssuffersbecauseofthesubstantialamountof theirmoneybeingsiphonedofftoagents.Besides,agentsmightwellrecommend particularcoursesandprovidersbasedonwhatcommissionwasbeingpaid.Baird feltthatstudentsshouldbeawarethattheagentwasreceivingacommissionand howmuchitwas. Justasthereisavarietyofagents,thereisalsoavarietyofattitudestothem.These attitudesfallintothreebroadcategories:ignorethem;licenseandempowerthem; workcooperativelywithagentsbutinformallyratherthanformally.Myown attitudebroadlyfallsbetweenthesecondandthirdcategories. Whilesomeeducationprovidersaremovinginthedirectionoflessrelianceon agents,theycontinuetobeafactoflife.And,inmanycases,theyplayavery positiverole.Idonotconsiderrefusingtoengagewithagentstobeaviableoption forDIAC. SomesubmissionstotheReviewarguedforamoreformalroleforagentsinthevisa process.Therearethreepossiblelevelsofauthoritythatcanbegiventoagents: Theycanbeapprovedtoactonbehalfofanapplicantincertainsituations, forexamplewherethestudentisnotallowedtolodgeaneVisaapplication directlythemselvesintheeVisatrialcountries.Thisroleisrestrictedtobeing avehicleforlodgingthestudentapplicationandgivesDIACsomecontroland leverageovertheagentsinvolved; Agentscanthemselveslodgeanapplicationdirectlyonbehalfofanapplicant. Forexamplepeoplewishingtocomehereonholidaycanhavetheir applicationforanElectronicTravelAuthority(ETA)lodgedforthembya travelagent,airlineorspecialistserviceprovideraspartofthetravel package;or AgentscanbedirectlylicensedbyDIACimplyingthatnonlicensedagents wouldbeexcludedfromactingonbehalfofapplicants.Thefirsttwooptions confersomebenefitson"trustedagents".Thisthirdoptiondetermineswho canworkasanagentandwhocannot. 108

Thesecondoptioninvolvesconferringmorebenefitsoncertainagentsinrelationto touristvisasthandoesthefirstoptioninrelationtostudentvisas.However,inthe caseoftouristvisas,thelengthofthevisaismuchshorterthanthatofastudent visa.Thereforeanypoorvisaoutcomeswillshowupmuchquickerinthetourist sectorthantheywouldintheinternationaleducationsector. Idonotsupportproposalstolicenseagents.UnderalicencesystemDIACwouldin effectdecidewhichagentswouldberecognisedandwhichwouldnot.Superficially thisseemsattractive.Butinpracticeitisfraughtwithhugedifficulties.Mostagents operateincountriesotherthanAustralia.InthosecircumstancesDIAClacksthe resourcesandthelegalpowertoenforcelicensingprovisionsandtosanctionagents directlyincaseswheretheybehaveinanunscrupulousmanner.Thereisariskthat anylicencesystemwouldcreateamarketingtoolforindividualagentsovertheir competitorsratherthananimprovedvisaprocessingsystem. AlthoughIdonotsupportaformallicensingofagents,IstronglysupportDIAC engagingwithagents,includingconferringbenefitsonagentsDIACagreestoregister forspecificpurposes.Someoverseaspostsalreadydothiseffectively.Itis somethingwhichshouldbeencouraged.ItisbeneficialforbothDIACandagentsto meetregularlyandforDIACtobeproactiveinkeepingagentsabreastofanychanges inrulesandprocedures.IrealisethatthismeansmoreworkandDIACshould considerwhetheritspostsareadequatelyresourcedtoupgradethistask.Onthe otherhand,DIACofficershavetoldmethatanyinvestmentincultivatingand educatingagentspaysoffinagreaterunderstandingofDIACsexpectationsand compliancewithDIACsrequirements. Inadditiontoengagingwithagents,itisalsoessentialthatDIACandDEEWRmonitor thebehaviourofagents.Someimportantinformationregardingagentbehaviour willcomefromtheexperienceofDIACofficersatoverseasposts.Theirexperiences ofinteractingwithindividualagentsareanimportantsourceofdata.Itwouldalso beveryhelpfulifthereissomemoreformaldataavailableonagentbehaviour.For example,itwouldbeusefultoknowifparticularagentsarelinkedtoparticular educationproviderswhichhavepoorvisarelatedoutcomes.Currently,thereisno requirementtoenterthenameofanyagentintotherecordofanindividualstudent inPRISMS.Thisisclearlyagapinthesystem.InanearlierchapterIrecommended thatitshouldbemandatoryforthenameofanyagentinvolvedintherecruitmentof astudenttobelistedagainstthatstudentsrecordinPRISMS.

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InoteinthiscontextthattheBairdReviewremarkedontheresponsibilitythat providersshould(butdonotalways)takefortheconductoftheagentstheyemploy overseas.Despitesomeprovidersclaimsthattheyhavelittleornoinfluenceover theiragents,Bairdrightlysawthisasanabrogationofresponsibility.Isupportthe BairdReviewspositionthat"Itisimportantthemessageisclearlygiventoproviders thatiftheycontractwithaneducationagenttorepresentthemthentheymust conductsufficientduediligencetobeconfidenttheeducationagentwillaccurately representthem,theircoursesandlivinginAustralia".AsBairdnotes,theESOSAct alreadymakesAustralianprovidersresponsibleforalltheiragents.Amendingthe ESOSActtoincludeprotectionagainstunethicalmarketingpracticesandestablishing financialpenaltiesforproviderswhoseoffshoreagentscanbeshowntohaveacted unethically,asrecommendedbyBaird,wouldreinforcethisresponsibility. Inotethat,followingBaird,thegovernmenthasalreadyintroducedanew requirementforproviderstolistontheirwebsitestheeducationagentswithwhom theyhaveagreements.Thegovernmenthasalsoenabledtheintroductionof specificregulationsconcerningprovidersuseofagents. Isupportthepromotionofagentprofessionalismandselfregulationbyrequiring providerstoonlyuseeducationagentswho: belongtoaprofessionalassociationwhereoneexists; havecompletedanappropriatetrainingcourse;and complywiththeirhomecountryrequirements.

DEEWRshouldalsocontinueitsroleinleadingthedevelopmentofaninternational approachtoinfluencingeducationagentbehaviour,withtheaimofdevelopinga statementofagreedprinciplesforethicalrecruitmentbyagents. Recommendation33 ThatDIACupgradeitsliaisonatoverseaspostswithmigrationandeducationagents inrelationtothestudentvisaprogram,includingregularmeetingstokeepagents abreastofanychangesinrulesandprocedures.

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Chapter15 TransnationalEducation
Thenatureofeducationischangingandthiswillimpacttheinternationaleducation sectorovertime.Thisshortchapterisnotintendedtobeadetailedexpositionof thefuturedirectionsofeducation.Insteaditmerelyflagstwoimportantareaswhich willhaveimplicationsforAustraliainthemediumterm.Bothofthesewillhave significantramificationsfortheinternationaleducationsectorandthestudentvisa program. 1. Globalisationandeducation WhilethemajorityofinternationaluniversitystudentscometoAustraliaforthe entiretyoftheircourse,thisisnottheonlymethodofstudy.Aswellasthemore traditionalroute,thereareavarietyofotherwaysAustralianuniversitiesare involvedwithinternationalstudents.Theseinclude: twinningorpartnershipsarrangementswhereastudentcompletespartofa degreeintheirhomecountryandthentravelstoanAustralianuniversityto completetheprogram,graduatingwithanAustraliandegree; atwinningarrangementsimilartotheoneabove,butthistimewiththe studentreceivingtwoseparatequalifications,onefromtheirhomeuniversity andanotherfromtheAustralianuniversity; jointlybadgedprogramswherethestudentgraduateswithoneparchmentor testamurwiththedegreeofbothinstitutionsincluded.Thestudentmightor mightnotspendtimeinAustraliaaspartofsuchaprogram;and studyatanoverseascampusofanAustralianuniversity.Aninternational studyexperiencemaynowbedelivered"athome". MostAustralianuniversitieshavearrangementswithuniversitiesinAsiawhichcan recognisestudyundertakeninhomecountriesforcredittowardsAustralianawards. Thereishoweverincreasinguseofmoreintegratedarrangementsreferredtoas "2+2"or"3+1"dependinguponhowmanyyearsarespentatthehomeuniversity andhowmanyinAustralia. AnexampleofthisistherelationshipbetweenVictoriaUniversityandLiaoning UniversityinChina.A"2+2"programisruninapartofLiaoningUniversitywhere studentsgainadegreefrombothLiaoningUniversityandVictoriaUniversity.Entry tothisprogramismorecompetitivethanentrytothegeneraluniversitypopulation. AhighstandardofEnglishisalsorequiredandfurtherEnglishstudyisamandatory partofthecourse.Thefeesareconsiderablyhigherthanforastandardcourseat LiaoningUniversity.ThecourseistaughtbyamixtureofChineseacademicsand academicsfromVictoriaUniversity.

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Thiscoursehasanemphasisonpreparingstudentsforfurtherstudyinternationally. WhenIvisitedLiaoningUniversityinShenyangrecentlyImetarangeofstudents whohadavarietyofcourseplans.SomewereintendingtodotwoyearsatLiaoning andtwoinMelbourneatVictoriaUniversity(atraditional2+2).Otherswere intendingtospendthreeyearsattheirChineseUniversityandoneyearinAustralia (a3+1).Somewereplanningtospendtheentirefouryearsoftheirundergraduate courseatLiaoningandthenundertakepostgraduatestudyatanAustralian university,notnecessarilyVictoriaUniversity.Therewerealsosomestudentswho didnotintendtoeverphysicallystudyinAustraliabuttocompletefouryearsin LiaoningandusetheirAustralianuniversityqualificationasasteppingstoneto postgraduatestudyintheUSortheUK. TherelationshipbetweenLiaoningandVictoriauniversitiesisnotunique.Itis merelyawindowintothedifferentwaysinwhichAustralianuniversitiesare interactingwithinternationalstudents.Thesechangingpatternsarelikelyto becomeincreasinglycommoninthenottoodistantfuture. Aswellasthe"twinning"arrangements,thereareanumberofinstanceswhere Australianuniversitieshaveestablishedcampusesinforeigncountries.Thishas particularlybeenthecaseinMalaysiaandSingapore: MonashSunwayinKualaLumpur; CurtinSarawaklocatedinEastMalaysia; SwinburneUniversityofTechnology,alsoinEastMalaysia; JamesCookUniversitySingapore;and Curtin,alsoinSingapore. InadditiontothosecampusesofAustralianuniversitiestherearesignificant partnershiparrangements.RMITforexamplehasmorethan8,000studentsina programwithSingaporeInstituteofManagement.Similarlythe UniversityofNewcastlehasmorethan2,000studentsinapartnershipwithPSB Academy. Overseasbranchcampusesorsinglefacultiesarenowfirmlypartofthe transnationaleducationsceneparticularlyintheUnitedArabEmirates(UAE)and SouthEastAsia.OtherAustralianoffshorecampusesinclude: MonashUniversity,SouthAfrica RMITUniversity,HoChiMinhCity,Vietnam CharlesSturtUniversity,Burlington,Ontario,Canada UniversityofWollongong,Dubai,UnitedArabEmirates

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AnincreasinglyinterestingfeatureoftheTransnationalenrolments(TNE)isthe presenceofthirdcountrycitizensenrollinginAustralianprogramsoffshore.Just becauseanAustralianuniversityoperatesacampusinMalaysiadoesntmeanthat allofthestudentswillberesidentsofMalaysia.InSingapore,forexample, internationalstudentsnowcompriseoverathirdoftheTNEenrolment.Whilethe TNEprogramsincludingthebranchcampuseshavealwayshadstudentsfromthird countries,alltheAustralianbranchcampusesinMalaysiaandSingaporereport significantincreasesinstudentsfromChina,India,Indonesia,Myanmar,Africaorthe MiddleEastinthelastyear. Articulationofinternationalstudents(through"twinning"programs)intouniversities inAustraliaandtheestablishmentofoffshorecampusesbyAustralianuniversitiesin foreigncountriesarepartofthechangingfaceofinternationaleducation.Butthatis notthewholestory.TheemergenceoftheWorldWideWeb(www)plusthe increasinglyubiquitouspersonalcomputer,haveprofoundimplicationsfortheway educationisdelivered.Thisnotonlyaffectstheobviousareasofdistanceeducation butteachingmoregenerally.InoneofhisBoyerlectureslastNovember,thevice chancelloroftheUniversityofMelbourne,GlynDavis,madethefollowing observation: AstheWebmakesknowledgewidelyavailable,soitundercutsthe traditionalauthorityofprofessors.Whatwasoncelargelyapublicornotfor profitactivityhasattractedlargeandsuccessfulprivatecompetitors.Mail ordercoursesalwaysexistedonthemarginsofhigherlearning,butthe combinationofnewtechnologyandsophisticatedprivateprovisionhas createdcommercialphenomenasuchastheprivateUniversityofPhoenix. Theseglobalenterprisespackageforaworldwidemarketprogramsonce offeredonlybytraditionalpublicuniversities. AsAustralianuniversitiesrespondtothischallengetheyarelikelythemselvesto becomemoreinvolvedwithdistanceeducation,onlinelearning,and"blended learning"(involvingamixtureofdifferentmethods). AllofthesechangesnotonlywillhaveimplicationsforthewayinwhichAustralian universitiesconducttheirprogramsforinternationalstudents,buttheywillalso haveramificationsforthestudentvisaprogram.Someonlineanddistance educationprogramswillinvolveoccasional"facetoface"learning.Insomecourses thismightinvolvetutorialsconductedintheinternationalstudentshomecountry. ButitalsomightinvolveacomponentoftraveltoAustralia.Thisraisestheobvious questionofhowtheAustralianvisaprogramswilldealwiththis.Shouldtheshort termvisitsbeconductedunderatouristvisa,astudentvisaorsomethingdifferent? Andhowshouldriskbeassessedforapplicantsintheseprograms?

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Similarly,whatwillbetheimpactofincreasingnumbersofstudentsfrom"third countries"studyingatoffshorecampusesofAustralianuniversities?The recommendationsofthisReportincludestreamlinedprocessingarrangementsfor internationalstudentsspendingayearortwooftheirdegreeinAustraliaaspartofa "twinning"program.Fornow,thatiscertainlyanappropriatethingtodo.Butwhat happensinthefutureifsubstantialnumbersofstudentsfromthirdcountriesseekto alsotakeadvantageofthosearticulationarrangementsintoAustralia?Willthey havethesimilarlylowriskprofileofstudentscurrentlyundertakinga2plus2or 3plus1? Theincreasingglobalisationofinternationaleducationislikelytoseemuchmore shorttermtravelbystudents,academics,administratorsandresearchers.Hopefully thiswillrepresentlowriskactivityasthesepeoplewillbecomingforaspecific purposeaspartofthemissionoftheirhomeinstitution.Itcouldbetogainpartofa qualification,conductresearchornegotiateresearchcollaboration,negotiateother partnershiparrangementsorundertaketeaching.Thevisasystemwillneedto changeinwaysthatfacilitatethisdevelopingreality.OnceagainDIACwillneedto developtheappropriatewaysofassessingrisk. Therearenoeasyanswerstothequestionswhichwillarisefromthischangingglobal environment.ButtheseareissueswhichDIACwillneedtowatchcarefully.My Reviewhasendeavouredtodealwiththecurrentsituationandtheimmediate future.Assomeoftheelementsofinternationaleducationchangeinthecoming years,thegovernmentwillneedtodecidehowtobalancethesearrangementswith whatundoubtedlywillbefuturedemands,particularlyfromtheuniversitysector.It willbethesamefundamentaldilemmathegovernmentfacesnowbutinachanging framework:howtoremaincompetitiveintheglobaleducationalmarketwhilestill ensuringtheintegrityofAustralia'smigrationcontrols. 2. VocationalEducationOpportunitiesOffshore InNewDelhiImetwiththeIndianMinisterforHumanResourceDevelopment, KapilSibal.MinisterSibalspokefavourablyaboutthequalityofAustralian vocationaleducation.However,heseemedmuchmoreinterestedinhighquality trainingbeingavailableinIndiaratherthantoIndianstudentstravellingtoAustralia. InAustralia,vocationaleducationisaccessedbypeopleacrossallincomegroups. Butforstudentsfromothercountries,theymustfitintoparticularincomestratain ordertoaffordtobeabletostudyinAustralia.Ofcourse,ifthosestudentsdonot returntotheirhomecountrythenthereisnoadditiontothevocationalskillbaseof thatcountry.

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TheuniversitysectorinAustraliahasconsistentlyhighquality.AndsomeAustralian universitiesareparticularlywellregardedinternationally.Ourtwomajorbilateral educationpartners,ChinaandIndia,alsohaveoutstandinguniversitieswith internationalreputations.Therearemanyreasonswhystudentsfromthose countrieswillchoosetostudyatanAustralianuniversity.Butforanelitestudent therearemanyoptions:theirhomecountry,Australia,theUS,theUK,Canada,New Zealand;tonamebutafew. Bycontrast,Australia'sreputationforvocationaleducationisthatofaworldleader. Itiswidelyrecognisedthatnoone,certainlynoEnglishspeakingcountry,doesit betterthanAustralia.Australiasvocationalinstitutionshavealreadyhad considerablesuccessinengaginginternationally.Iwasimpressedbythefactthat theNationalQualityCouncilreportedthatin2009some142providersdelivered coursestoover73,000studentsin66countries.Howeverthemarketforvocational trainingwithinAsiaispotentiallyenormous. IntheshorttermmanyVETprovidershavetendedtoconcentrateonattracting studentstoAustralia.Thathasbeenmorecosteffectiveforthem.Itismucheasier topayacommissiontoanagenttorecruitstudentsthanitistosetupanoffshore operationwhichmayinvolveconsiderablerisk.ButinthemediumtermAustralia hastheopportunitynotmerelytoattractstudentsbutto"ownthespace"inthe fastestemergingeconomiesinthemostpopulouscountries. InIndiaIsawanindicationoftheopportunitiesavailable.AtGurgaonnear NewDelhiIvisitedasmalltrainingoperationforpotentialworkersinthe constructionindustry.Thetraineeswereallyoungmenfromruralcommunities. Thetrainingwasconductedbyalocalcommercialorganisationusingcustomised curriculumbasedonaWesternAustralianTAFEqualification.Individualstudents werereceivingjobreadyskillsinareaslike:scaffolding,paintingandcarpentry.The curriculumwasdevelopedbyTAFEandsuccessfulstudentsreceiveaCertificate1. TheAustralianconstructionfirmLeightonisapartnerintheprojectandprovides employmentforthegraduates.FromLeighton'spointofviewtheyareabletohire workerswhohavethevocationalskillsthejobrequires.Forthestudents,thecourse enablesthemtobothdevelopvocationalskillsandaccessapathwaytoemployment. Thebestgraduatesoftheearlycourseshavereturnedforfurthertraining.Generally theyarethepeoplepromotedtogreaterresponsibilityontheworksites. WhilethepotentialopportunitiesforAustralianvocationalproviderstoconduct coursesoffshoreareimmense,thechallengesarealsoconsiderable.Settingupina foreigncountryisextremelydifficult.Insomecountriesitisparticularlychallenging tofindthemostappropriatelocalpartner.Therevenuefromanindividualstudent undertakingvocationaltrainingintheirhomecountrywillbelessthanitwouldbe forstudentsstudyinginAustralia.And,intheshorttomediumterm,therewill undoubtedlybedifficultiesinattractingtheappropriatestaff.Buttherearemany millionsofyoungmenandwomenwhowillbeseekingvocationaltrainingand opportunitiesintheirowncountriesratherthanamigrationoutcomeinAustralia.

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ThisisamarketwellworthfurtherdevelopingforAustraliasvocationaleducation providers. Recommendation34 ThatAustradebeaskedtoprepareamoredetailedoutlookdocumentthatprovides effectivebusinessplanningintelligencedemonstratingtheopportunities,for offshoreprovisionofvocationaleducation. Recommendation35 ThatthehighestqualityAustralianVETprovidersincludingTAFEs,beencouragedto exploreoffshoremarketopportunities. Recommendation36 ThattheAustralianGovernment,throughprogramssuchastheExportMarket DevelopmentGrantsSchemeandotherformsofassistance,supporthighquality Australianvocationaleducationprovidersinexpandingtheiroffshoretraining services.

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Chapter16 ANewConsultativeMechanism
ManysubmissionstotheReviewcalledforimprovedcommunicationbetween stakeholdersandbothDIACandDEEWR. Commentingonthemechanismsforconsultingoneducationalmattersisbeyondthe remitofmyReview.Butitisappropriateformetomakesomerecommendationson animprovedmechanismforconsultingonstudentvisamatters. ItshardlysurprisingthatIamconfidentthattheimplementationofthe recommendationsinthisReportwillleadtoarobuststudentvisaprogramanda sustainableinternationaleducationsector.ButIamconsciousthatthesectorisa livingentityandthestudentvisaprogramcannotitselfremainstatic.Severalofthe recommendationsinthisReviewspecificallyproposethatcertainmattersbedealt withinthenearfuture,forexampleaninternalDIACreviewoftheALframework.As well,whendeclaringtheprincipleswhichunderpinthisReport,Imadeitveryclear thatthestudentvisasystemwillneedadjustmentsasnewthreatstoitsintegrity evolve.And,ofcourse,thereareavarietyofdifferentwaysthatsomeofthe immediateactionsrecommendedinthisReportcanbeimplemented. SothereismuchstilltobedoneandthisshouldnotbeaninternalmatterforDIAC alone.ThroughoutthisReviewIhavetriedtoconsultwidelywithstakeholders.Just becausethisformalIndependentReviewhasconcludeddoesnotmeanthatthereis notaneedforongoingconsultation.InmyviewitisessentialthatDIAChasa mechanismtocommunicateandconsultontheimplementationofanyofthe recommendedchangeswhichthegovernmentdecidestoembrace.Similarlythereis aneedtointeractmoreformallywithstakeholdersinrelationtopossiblechangesin thefuture.AndthatsjustsomeofthethingsDIACshouldtalktostakeholders about.Beyondthattherewillbeotherissuesthatstakeholderswouldwanttoraise withDIAC.Inseekingamechanismforimprovedconsultation,DIACsmodelfor communicatingwithtourismvisastakeholdersisagoodstartingpoint. In2002DIACestablishedtheTourismVisaAdvisoryGroup(TVAG)toimproveits interactionwithstakeholdersinthetourismsector.Generally,stakeholderfeedback inrelationtotheTVAGhasbeenpositive. TVAGmeetsfourtimesayear.DIACchairsandprovidesthesecretariatforthe meeting.TVAGprovidesaforumforsharinginformation.DIACisabletoengage withkeystakeholdersonforthcomingchangestothetouristvisaprogramwhile learningfromthosestakeholdersaboutkeyissuesandconcernsinthesector.This informationthenprovidesasolidinformationbaseforconsideringthefutureneeds ofthesector.Fromtimetotimedepartmentalandindustryspecialistsareinvolved asguestspeakers.

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Thisapproachhascontributedtoafeelingofopennessandaccountabilityand ensuresthatinformationissharedonissueswhentheyaresmall,hopefully mitigatingtheirpotentialtobecomelargerdifficulties. Thereareanumberofexistingconsultativemechanismsintheinternational educationspace.TheseincludetheInterdepartmentalForumwhichbringstogether deputysecretarylevelofficersfromtherangeofCommonwealthGovernment departmentswithaninterestininternationaleducationpolicy.Theaimofthis groupistoensureawholeofgovernmentapproachtointernationaleducation policy. AnotherbodyinvolvesbothFederalandStaterepresentativesandiscreatedunder theauspicesoftheCouncilofAustralianGovernments.TheJointCommitteeon InternationalEducation(JCIE)isasubsidiarybodyoftheNationalSeniorOfficers Committee(NSOC).TheNSOCismadeupofseniorCommonwealthandState GovernmenteducationofficialsandinturnreportstotheMinisterialCommitteeon TertiaryEducationandEmployment(soontobeknownastheStandingCommittee onTertiaryEducation,SkillsandEmployment). Thesebodiesfocusprimarilyongovernmentstakeholders. ThereisabodywithawidermembershipTheGovernmentIndustryStakeholder ConsultationwhichcomprisesbothDIACandDEEWRalongwitheducationpeak bodies.NotionallyitmeetstwiceayearandisjointlymanagedbyDIACandDEEWR whotaketurnsinchairing.ThishasnotmetsinceMay2010althoughtherehave beenindividualconsultationswithsomerepresentativegroups. DuringtheReviewthenearestthingIcouldfindtoabroaderstakeholderbodythat metregularlywastheClientStakeholderGroupswhichDIACsponsorsineachState. ImetwithseveraloftheminthecourseoftheReviewandIfoundthatvaluable. Howeverthosebodieshaveamuchbroaderrangeofintereststhanthestudentvisa program.ItwouldbedesirableifDIAChadaforumwhichincludedawiderangeof stakeholdersbutwithacharterfocussedonstudentvisaissues.Itwouldbe relativelystraightforwardtoreplicatetheTVAGmodelasawaytoimprove communicationandconsultationwithstakeholdersinthestudentvisaprogram. Whilethefocusshouldbeonstudentvisaissuesitmightbeappropriatetoalso includeothereducationrelatedvisamaterssuchasthemovementsof administrators,researchersandacademics.Appropriatetermsofreferencewould needtobedrafted,butasaminimumanEducationVisaAdvisoryGroupshould provideaforumforparticipantstodiscuss: policymattersinvolvingeducationrelatedvisas;

emergingissuesandtrendsintheinternationaleducationsectorthatmay impactoneducationrelatedvisas;and operationalinitiativesregardingeducationrelatedvisa.

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Themembershipcouldinclude: PeakBodies UniversitiesAustralia AustralianCouncilofPrivateEducationandTrainingProviders TAFEDirectorsAssociation CouncilofPrivateHigherEducation AustralianGovernmentSchoolsInternational IndependentSchoolsCouncilofAustralia EnglishAustralia CouncilofInternationalStudentsAustralia InternationalEducationalAssociationofAustralia Government DepartmentofEducation,EmploymentandWorkplaceRelations DepartmentofImmigrationandCitizenship(Chair) DepartmentofInnovation,Industry,ScienceandResearch DepartmentofForeignAffairsandTrade AustralianTradeCommission ACTGovernment NSWGovernment NTGovernment QLDGovernment SAGovernment TASGovernment VICGovernment WAGovernment Otherinterestedbodies AustralianChamberofCommerceandIndustry AustralianCouncilofTradeUnions Recommendation37 ThatDIACconstituteanEducationVisaAdvisoryGroupasaprimarymeansof regulartwowaycommunicationbetweenstakeholdersintheinternational educationsectorandDIAC.

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Chapter17 OtherMatters
PreVisaAssessment ThePreVisaAssessment(PVA)arrangementisaDIACpolicywhichnormallyapplies toAL3,4and5applicantsmakingtheirinitialstudentvisaapplicationbypaper (ratherthanelectronicallyviaeVisa). ThePVArequiresastudenttolodgetheirpaperapplicationwithDIAConthebasisof aletterofofferfromtheirproposededucationprovider.DIACtheninitiallyassesses theapplicationandiftheapplicationlooksasthoughitissatisfactory,theapplicant isadvisedbyDIACtoproceedwithhealthexaminations(ifnotalreadyundertaken), paytuitionfees,andobtainaConfirmationofEnrolment(CoE)fromtheirproposed educationprovider. WhenDIACreceivesthisfurtherinformation,afinalassessmentoftheapplicationis thenmade. ThestatedpurposeofthePVAprocessistodiscouragenongenuinestudentsfrom applying;avoidstudentsgainingundueexpectationsofbeinggrantedavisa;and limitthenumberofrefusedvisaapplicationsforwhicheducationprovidersare obligedtorefundtuitionfeesthathavebeenpaidinadvance. WhileIunderstandthedesiretomitigatetheserisks,itisnotclearhoweffectivethe PVAprocessisindiscouragingapplicationswhichareunlikelytobesuccessful. Furthermore,theriskmitigationbenefitsofthePVAneedtobeweighedagainstthe considerabletimeandeffortthePVAcanaddtothestudentvisaassessment process.Forexample,oncethePVAletterissentbyDIACtotheapplicant,the applicanthasuptotwomonthsinwhichtoreceivetheletterandasktheproviderto issueaCoE.OnreceiptoftheCoE,DIAChastomatchtheCoEagainsttheoriginal letterofoffertoensurethattheyareforthesamecourse.DIACthenresumesthe visaassessmentprocesswhichmayhavebeensignificantlyinterruptedbythePVA. Itscomplicatedandinvolvesafairbitof"doublehandling".Ittakesupalotofstaff time,timethatcouldbeotherwiseusedtoprocessvisaapplications. In200910,some36,329applicationsforstudentvisasfromoffshoreweresubject tothePVA.Thiswasapproximately21percentoftotaloffshorestudentvisa applications.Substantialbenefitsintimeandeffortcouldaccruefromremovingthe PVAandrequiringproviderstoissueaCoEtoalloverseasapplicantswhomeettheir courserequirementsandwhomtheywishtoenrol.InsubmissionstotheReview, therewasstrongsupportforthisfromwithintheeducationsector.

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Timingofstudentvisagrants CurrentDIACpolicyisthatstudentvisasoffshoreshouldbegrantednotmorethan fourmonths(124days)priortothestartdateofthestudentscourse.Thisisapolicy positionandnotalegalrequirement. Furthermore,theeVisasystemcurrentlypreventsoffshoreeVisaapplicationsbeing lodgedmorethan124daysbeforethecommencementdateintheCoE. ThesepolicyandsystemssettingsseektopreventstudentsfromarrivinginAustralia wellbeforetheyareduetostarttheirstudieswhichcouldencourageunlawful activitysuchasworkingpriortothecommencementoftheircourse. Theoperationofthispolicymay,insomecases,meanthestockpilingofreadyto grantapplications,leadingtopoorerperformanceagainstservicestandardsand dissatisfactionforstudentvisaapplicants.Whilethissituationdoesnotariseatall timesandatallprocessingcentres,itcananddoesoccuratpostswhichhavetheir studentvisacaseloadwellinhand. Mosteducationalprovidershavedistinctenrolmenttimesduringtheyear.For example,theuniversitieshavetheirlargestnumberofcommencementsatthe beginningofSemesterOneusuallylateFebruaryorearlyMarch.Theyhavea secondsubstantialintakeatthestartofSemesterTwoaroundJuly.Theprovider enrolmentpeaksareobviouslymirroredintheDIACworkload.Anythingwhichhelps "smoothout"theworkloadshouldimproveefficiency. PreventingstudentvisaholdersspendinganinordinateamountoftimeinAustralia beforetheircoursesbeginissensible.However,haltingthevisagrantprocessasa wayofpreventingthisoutcomeappearstobeclumsyandinsomewayscounter productive. TakingintoaccountothermeasuresIhavesuggestedinthisreport(suchasthe genuinetemporaryentrantrequirement)therewouldbemeritinremovingthis policy.DIACofficersshouldbeallowedtograntavisaassoonastheyaresatisfiedall requirementsaremet.Tomitigateanyresidualrisk,adatecouldbespecifiedwhen thevisaholdercanenterAustralia.Thiswouldmatchothercountriesrequirements (suchastheUSandUK)whichdonotletstudentvisaholdersenterthecountryuntil closetothecoursestartdate.

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VaryingtheVisaApplicationCharge InmydiscussionpaperIraisedtheissueofwhetherthestudentvisaapplication charge(VAC)wastoohigh.ThetablebelowgivesacomparisonoftheAustralian VACwithsomeofourcompetitors: Comparativevisacharges(inAustraliandollars)asat16June2011 Australia $550(includinganyaccompanyingdependants) NewZealand $61onlineviaeducationprovider $167lodgedinNewZealand $129lodgedinPacific/Australia $175lodgedinrestofworld Canada $121primaryapplicantandforeachdependant UK $1077primaryapplicantapplyingonshore(inperson) $538perdependantapplyingatsametimeastheprimaryapplicant applyingonshore(inperson) $1305perdependantapplyingonshore(inperson)atlaterdate $592primaryapplicantapplyingonshore(bypost) $296perdependantapplyingatsametimeastheprimaryapplicant applyingonshore(bypost) $844perdependantapplyingonshore(bypost)atlaterdate $391primaryapplicantapplyingoffshore $391perdependantapplyingatsametimeorlaterdate,asthe primaryapplicantapplyingoffshore $132primaryapplicantandforeachdependant

US ThistablesuggeststhattheAustralianVACis,ingeneral,higherthanour competitors.IftheVACwereamajordisincentivetoprospectiveinternational studentstherewouldbemeritinreducingit.However,preliminaryresultsfroma recentAEIsurveyofeducationagents,alumniandprospectivestudentssuggeststhe visacostisnotamajordisincentivetostudyinginAustralia. Initialresultsfromthesurvey(fromthreeofAustraliaslargestsourcecountriesfor internationalstudents:China,IndonesiaandKorea),foundthatthecostofavisawas consideredtobetheleastimportantfactorbythemajorityofgroupssurveyed. Qualityofeducationwasconsideredtobethemostimportantfactorforthemajority ofgroups.Thecostoftuitionandthecostoflivingwerethesecondandthirdmost importantfactorsforthemajorityofgroups.

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Ofcoursealmostanyonewhopaysanygovernmentfeeortaxwouldpreferittobe lower.ButeventhosewhoargueforareductionintheVACdonotclaimthatthis willleadtoincreasedstudentnumbers.Theargumentsareusuallymadeina contextualsense:itsaboutthemessagethesizeofthefeesends.Thesizeofthe VACcannotbeconsideredinisolation.Allgovernmentsmustbalanceaplethoraof competingdemandsontheirrevenueandexpenditure.Intheenditisamatterfor thegovernment,ratherthanthisReview,todecideitsbudgetarypriorities.Ifthe governmentdidwanttoconsideranypossiblereductionsintheVACthenIwould suggestitlookattwospecificareasratherthan"acrosstheboardreductions". IfweaccepttheargumentthatareductionintheVACismoreabout"themessageof welcome"itsendsthenthepriorityarea,asmentionedinChapter6couldbethe HDRstudents.Thesearethestudentswhopotentiallybringadisproportionate valuetoAustraliafarinexcessoftheirfees,andforwhomthereisfierceglobal competition.AbolishingtheVACaltogetherforHDRstudentscouldbeapartofa broadermessageofAustraliasdeterminationtoattractmoreofthem. AlternativelyiftheemphasisinanypolicytoreducetheVACwasbasedonrelative "fairness"thentherewouldbeacaseforconsideringalowerVACforshorter courses(suchasstandaloneELICOS).Thiscouldprovideanincentiveforthese studentstoapplyforastudentvisaratherthanthecurrentsituationwheremanyof thesestudentsundertaketheirstudyinAustraliaonavisitorvisa.Underastudent visatheywouldreceivetheassociatedprotectionsoftheESOSwhicharenot availabletothosestudyingonatouristorworkingholidayvisa. However,whileIhavesomesuggestionsaboutpossibleoptions,thisReportmakes norecommendationswithregardtothesizeoftheVAC. IndexationoftheLivingCostrequirement On1January2010,theamountoffundsstudentsarerequiredtohaveinorderto supportthemselveseachyearinAustraliathecostoflivingrequirementwas increasedfrom$12,000peryearto$18,000peryear.The$12,000figurewassetin 2001.Therewerevalidcriticismsthatthe$12,000figurenolongerreflectedthe truecostoflivingforoverseasstudents,giventheriseinthecostoflivingsince 2001. Whileinternationalstudentsareabletosupplementtheirincomewithmoney earnedthroughparttimeworkinAustralia,thelivingcostsrequirementhelpsto supportthesuccessofstudentsintheirstudies.Theyarenotmeanttoberelianton suchworktomeetalltheirexpenses.

124

However,whileDIACwascriticisedfornotraisingthefigureovermanyyears,they werealsocriticisedforthesuddenandsubstantialjump.Manystakeholders complainedtotheReviewaboutthis.Indeedtheyexpressedconsiderableanxiety aboutthepossibilityofanyfuturedramaticincreases.Itwouldbesensibleforthe governmenttomakeanannualreviewoftheamountandwherenecessaryadjust thefigurebasedontheConsumerPriceIndex(CPI)orasimilarmeasureofcostof livinginAustralia. Exclusionperiods Formerstudentvisaholders,whoareoutsideofAustraliamayundersome circumstancesbesubjecttoanexclusionperiod.Thatpreventsthemfrombeing grantedanotherstudentvisaforthreeyearsfromacertaindate. Thiscanhappentoformerstudentvisaholderswhosevisaswerecancelledbecause ofnoncompliancewiththetermsoftheirfirstvisa.AsdiscussedinChapter12, manyofthesecancellations,onfurtherexamination,arebasedonquestionable grounds. Studentvisaapplicantsaffectedbyanexclusionperiodcanbegrantedavisabefore thethreeyearsisup.Buttheremustbecompellingcircumstancesthataffectthe interestsofAustralia,orcompassionateorcompellingcircumstancesthataffectthe interestsofanAustraliancitizen,anAustralianpermanentresidentoraneligible NewZealandcitizen. AlthoughDIACpolicydoesallowforsomediscretiontoallowforgrantofafurther studentvisatoformerstudentvisaholderswhosevisawascancelled,thereismerit inextendingorremovingsomeoftheprovisions.Thecurrentarrangements capturestudents,whohavehadtheirvisascancelledbutwhoareforallintentsand purposesstillagenuinestudent. Ihavealreadymadeseparaterecommendationsthattheautomaticcancellationof studentvisasforbreachofthestudyrequirementsandmandatorycancellationof studentvisasforbreachoftheworklimitationbereformed.Thiscouldreducethe numberofotherwisegenuinestudentswhoundercurrentrequirementsmaynotbe abletobegrantedafurtherstudentvisa.However,someunfortunateindividuals couldstillbesubjecttothethreeyearexclusionruleontechnicalgroundsrather thanunacceptablebehaviourontheirpart.Thereforeitwouldbeworthwhilehaving DIACreviewthecurrentexclusionarrangements. Recommendation38 ThatthepolicyregardingPreVisaAssessment(PVA)bediscontinued. Recommendation39 Thatstudentvisasbeallowedtobegrantedinadvanceoffourmonthsbeforethe commencementoftherelevantcourse.Wherenecessaryvisasshouldspecifyadate beforewhichtheholdercannotenterAustralia.

125

 Recommendation40 ThatDIACregularlyreviewsthecurrentlivingcostamount,andbasedontheCPIor othermeasureamendtheamount,asrequired. Recommendation41 ThatDIACreviewtheexclusioncriteriaandpolicywhichrelatetostudentvisa noncompliance.

126

Appendix1

AustralianGovernment

TermsofReference StrategicReviewoftheStudentVisaProgram

Overview AustraliasStudentvisaprogramenablesinternationalstudentstostudyin Australia.Theprogramfacilitatesthecontinuedstrengthandcompetitivenessof theinternationaleducationsectorwhileensuringappropriateintegritymeasures aremaintained. TheGovernmentvaluestheimportanteconomicandculturalcontributionmadeby theinternationaleducationsector.Inthepastdecadethesectorhasundergone rapidgrowth.ThenumberofStudentvisasgrantedhasmorethandoubledfrom 108000in199798to269828in200910. TheintegrityoftheStudentvisaprogramhasbeenchallengedinrecentyearsby thepromotionofAustralianeducationcoursesasapathwaytopermanent migration. TheGovernmentreformedtheSkilledMigrationprogramtoclearlyaffirmthat whilethereareopportunitiesforinternationalstudentsseekingpermanent residencyinAustralia,thereisnoguaranteedpathway.Thesechangeshave deliveredaSkilledMigrationprogramthatisnowdrivenbytheskillsneedsof industryandemployers,ratherthantheeducationalchoicesofinternational students. Morerecently,theinternationaleducationindustryinAustraliahascomeunder increasingpressureasaresultoftherisingvalueoftheAustraliandollar,the ongoingimpactoftheglobalfinancialcrisisinsomecountries,andincreased competitionfromothercountriesintheinternationaleducationmarket.Thesector hasalsofacednegativepublicityinthewakeofseveralattacksoninternational studentsandtheclosureofsomeinternationaleducationproviders.

WhileAustralianeducationisalreadyhighlyregarded,theGovernmentisfocused ondrivingreformstofurtherimprovequality.BuildingAustraliasreputationasa providerofqualityeducationisthekeytostrengtheningthecompetitivenessof ourinternationaleducationsector.

127

InthiscontextitistimelytoreviewtheframeworkunderpinningtheStudentvisa programtoensureitiswellpositionedtorespondtocurrentandfuture challenges.

TheGovernmenthasappointedtheHonMichaelKnightAOtoundertakea strategicreviewoftheStudentvisaprogram.TheReviewwillreportto Governmentbymid2011. TermsofReference Withaviewtoenhancingthequality,integrityandcompetitivenessofthe internationaleducationsector,aswellstrengtheningtheintegrityoftheStudent visaprogram,theReviewwillexamineandmakerecommendationson: 1. Aneffectivepartnershipframeworkthatconsiderstherespectiverolesand responsibilitiesofkeystakeholders,includingeducationproviders,the DepartmentofImmigrationandCitizenship,theDepartmentofEducation, EmploymentandWorkplaceRelations,andstateandterritoryeducation departments. 2. TheappropriatenessofexistingthresholdrequirementsforStudentvisa applicantsincludingEnglishlanguageproficiency,financialcapacityand educationalqualifications. 3. Approachestomoreeffectivelygaugeandmanageimmigrationriskinthe Studentvisacaseload,includingconsideringthesuitabilityoftheAssessment Levelmodel. 4. Approaches,includingcompliancemeasures,topreventmisuseofthe programanddeterbreachesofvisaconditions. 5. ThesuitabilityofseparatevisasforSchools,VocationalEducationand Training,HigherEducation,PostgraduateResearch,AusAidorDefence,Non awardandStudentGuardians. Keyconsiderations TheReviewwilltakeintoaccount: Studentvisaprogramsincomparablecountries. Relevantreviewsandinquiries. Globaltrendsintheinternationaleducationmarket. TheobjectivesofAustraliasdemanddrivenSkilledMigrationprogram. Bestpracticedatamanagement,exchangeandanalysis,withregardto privacyprinciples.

128

Appendix2

StakeholdersConsulted
SURNAME FIRSTNAME COMMONWEALTHGOVERNMENT POSITION Ministerfor Immigrationand Citizenship ORG ABRV.

Bowen Brumby

Chris Tara

Evans

SenatorChris

Byron DeLeo

John Marianne

Proctor Hassett Haddad

Murray Michael Amy

Evans

Pat

Linford Harris StevensonPerks

Peter Tracy Quentin

Yuile Gonsalviz

Peter Amy

Angley

John

Wallis

Jane

Adviser MinisterforTertiary Education,Skills, JobsandWorkplace Relations International AdvisertoSenator KimCarr,Minister forInnovation, OfficeofMinister Industry Carr OfficeofMinister Evans Adviser FirstAssistant DirectorGeneral SectoralPolicy Division AusAID Director, ScholarshipsSection AusAID A/gDirector, ScholarshipsSection AusAID ExecutiveDirector, Exportand InvestmentServices Austrade SeniorTradeand Investment Commissioner, SouthAsia(New Delhi) Austrade NationalEducation Manager Austrade A/gNational EducationManager Austrade DeputyChief ExecutiveOfficer andExecutive Director Governmentand CorporateServices Austrade Manager (Education) Austrade GeneralManager, Governmentand Communications Austrade Trade Commissioner, Beijing Austrade

OfficeofMinister Bowen

FED FED

FED

FED FED

FED FED FED

FED

FED FED FED

FED FED

FED

FED

129

SURNAME Morrell

FIRSTNAME Alan

POSITION SeniorTrade Commissioner

ORG Austrade

ABRV. FED

Martins Pillai

Paul Padmini

SeniorTradeand Investment Commissioner Minster,Council Austrade (Commercial) EducationManager, Malaysia Austrade Disability Discrimination Commissionerand RaceDiscrimination Commissioner Commonwealth Ombudsman SeniorAssistant Ombudsman AssociateSecretary, Tertiary,Skills, Internationaland IndigenousStrategy Australian Education InternationalIndia, ChinaandMalaysia Onshorestaff Nationaland State/Territory offices AustralianHigh Commissionerto India DeputyHeadof Mission,NewDelhi AustralianConsul GeneralChennai Australian Ambassadorto China Ministerand DeputyHeadof Mission,Beijing AustralianConsul General,Shanghai AustralianHigh Commissionerto Malaysia DeputyHigh Commissioner, KualaLumpur

FED FED

Innes Asher Masri

Graeme Allan George

AustralianHuman RightsCommission Commonwealth Ombudsman Commonwealth Ombudsman

FED FED FED

Griew

Robert

DEEWR

FED

DEEWR

FED

DEEWR

FED

VargheseAO Strahan Holly

Peter DrLachlan David

DFAT DFAT DFAT

FED FED FED

Raby

Geoff

DFAT

FED

Meehan Connor

Graeme Tom

DFAT DFAT

FED FED

Kupa

Miles

DFAT

FED

Chittick

Craig

DFAT

FED

130

SURNAME

FIRSTNAME

Pierce

Mark

Kang

Pablo

Ford

Andrew

Bevan Metcalfe

Frances Andrew

Kelly Baly

Patricia Anne

Manion

Alison

Starmer

Sean

POSITION AssistantSecretary SouthandCentral AsiaBranch AssistantSecretary International Organisations Branch A/gAssistant Secretary,Trade Competitiveness andAdvocacy Branch Trade Competitiveness Section Secretary Offshorestaff India,Chinaand Malaysia Onshorestaff Nationaland State/Territory offices DeputySecretary FAS,Research Division A/gManager, Research Performanceand AnalysisTeam SeniorAdviser Scienceand Technology,New Delhi

ORG

ABRV.

DFAT

FED

DFAT

FED

DFAT

FED

DFAT DIAC

FED FED

DIAC

FED

DIAC DIISR DIISR

FED FED FED

DIISR

FED

O'Brien Schofield

Denis Kay

PrincipalMember Chair

DIISR MigrationReview Tribunal,Refugee ReviewTribunal NationalVET Regulator

FED

FED FED

Cross

Rebecca

Morton

Madonna

BradleyAC

ProfessorDenise

DepartmentofPrime DeputySecretary MinisterandCabinet FED AssistantSecretary, Educationand DepartmentofPrime Workforce ParticipationBranch MinisterandCabinet FED TertiaryEducation Qualityand StandardsAgency InterimChairman (TEQSA) FED

131

SURNAME

FIRSTNAME

POSITION

Hawke Tang

Ian May

Furnell Peta STATE/TERRITORYGOVERNMENTS ACT

InterimCEO TourismAustralia, Shanghai GeneralManager, SocialPolicy Division

ORG TertiaryEducation Qualityand StandardsAgency (TEQSA) TourismAustralia

ABRV.

FED FED

Treasury

FED

Cover NSW

Leanne

CEO,DET Internationaland TAFEInternational andInternational Business Director, International Students Director,Tradeand Investment,India A/gAssistant Director,General TertiaryandNon Stateeducation Chairman,QETI AdvisoryBoard ExecutiveDirector, Queensland Educationand Training Internationaland StrategicProjects A/gManager, Queensland Educationand Training International Trade Commissionerto SouthAsia

JointCommitteeon International Education(JCIE)

ACT

Saccaro

Francesca

Seath

Diane

Manchanda Howland Queensland

Rohit Mark

NSWDepartmentof Educationand Training NSWDepartmentof Educationand Training NSWGovernment BusinessOffice Mumbai JCIE

NSW

NSW

NSW NSW

Kimber

Ian

Braddy

HonPaul

DET Tradeand Investment Queensland

QLD

QLD

Dignam

Stuart

Tradeand Investment Queensland

QLD

Sullivan

Elizabeth

Tradeand Investment Queensland TradeQueensland India

QLD

Solomons

Rod

QLD

132

SURNAME SouthAustralia

FIRSTNAME

POSITION

ORG

ABRV.

Nieuwenhuis Karthigasu O'Leary Greaves Tasmania Gutteridge Victoria

Adrienne Saraswathi Therese Heidi David

Director,Quality andTertiary EducationPolicy SeniorProject Officer TrainingAdvocate

Departmentof FurtherEducation, Employment,Science andTechnology (DFEEST) SA DFEEST OfficeoftheTraining Advocate JCIE JCIE Departmentof Businessand Innovation(DBI) SA SA SA TAS

Hanna

David

Lekakis

George

DeputySecretary ExecutiveDirector, International StudentExperience Manager, International EducationStrategy, International EducationBranch SeniorPolicy Analyst Director,Tertiary EducationPolicy andGovernance GeneralManager, International Executive ExecutiveDirector, PolicyandCabinet DeputyChiefof StaffOfficeofthe ChiefCommissioner Manager, International StudentCare Service Manager, International Education

VIC

DBI

VIC

Brown Raeburn

Cameron Taliessin

DBI DBI Departmentof EducationandEarly Childhood Development Departmentof EducationandEarly Childhood Development Departmentof PremierandCabinet

VIC VIC

Ingham

Chris

VIC

Christophers Haire

Sue Katy

VIC VIC

Geddes

InspectorIan

VictoriaPolice Victorian Multicultural Commission Victorian Registrationand Qualifications Authority

VIC

Prentice

Alexandra

VIC

Bourton

Gary

VIC

133

SURNAME

FIRSTNAME

POSITION

Glover

Lynn

Werry Conaghan WesternAustralia

John Geoffrey

Director StrategicAdviser, Workforce ParticipationPolicy Commissionerto India CEO,ChairofJoint Committeeon International Education(JCIE) Manager,Business Development PrincipalBusiness Analyst AssistantDirector, Educationand TrainingRegulation Ombudsman Assistant Ombudsman Chairmanofthe BoardandNational President

ORG Victorian Registrationand Qualifications Authority WorkforceVictoria, DBI StateGovernmentof Victoria

ABRV.

VIC

VIC VIC

Strickland Lloyd Bontempo

Richard David Joe

Departmentof EducationServices Departmentof EducationServices Departmentof EducationServices Departmentof EducationServices Ombudsman Ombudsman

WA WA WA

Viney Field

Brad Chris

WA WA WA

White Mary PEAKBODIES/EDUCATION

Tudor

Frank

AustraliaChina BusinessCouncil AustralianCouncilof PrivateEducation andTraining(ACPET) Australian TechnologyNetwork UniversitiesSA

PEAK

deLeoOAM

Joy

ExecutiveOfficer

PEAK

Thomson

Vicki

Phillimore

John

Wood

ProfessorDavid Associate ProfessorDavid Jason Denise ProfessorDean

Director ExecutiveDirector, CurtinInstituteof PublicPolicy DeputyVice ChancellorandVice President Chair,English Australia MarketAnalyst ChiefExecutive DeputyVice Chancellor

PEAK

CurtinUniversity CurtinUniversityof Technology Director,Curtin EnglishLanguage Centre EducationAdelaide EducationAdelaide Flindersuniversity InternationalCollege ofHotel Management

PEAK

EDU

Matthews Russo VonWald Forbes

PEAK PEAK PEAK EDU

Lipman

Gerald

ChiefExecutive

EDU

134

SURNAME

FIRSTNAME

Sleath Porter Paxton

Marilyn Mark John

POSITION Director International Education Chair Member,WAPETIA

ORG International EducationServices ISCA PerthInternational CollegeofEnglish

ABRV.

PEAK PEAK PEAK

Ciccarelli

DrAnna

Queensland Educationand Training DVC(I),Universityof International(QETI) Queensland AdvisoryBoard Queensland Educationand Training International(QETI) AdvisoryBoard Queensland Educationand Training International(QETI) AdvisoryBoard QUT

PEAK

Nelson

David

Universityof Queensland

PEAK

Mahajan Coaldrake

Sangeeta ProfessorPeter

Sheppard Meakin Dawson Amrein Taplin Grieg RobsonAM Smith

Scott Chris Janelle Andre ProfessorJohn Rob ProfessorAlan MrKelly

Nudgee International College ViceChancellor DVC(I)andformer AEICounsellorin Beijing SeniorPolicy Adviser ChairWAPETIA GeneralManager ProViceChancellor (I) Director, International

PEAK EDU

QUT QUT SterlingCollege TAFESA International Universityof Adelaide

EDU EDU PEAK EDU EDU EDU EDU EDU

Watts

Marnie

Hicks

Mary

UniversityofSA Universityof WesternAustralia ViceChancellor Director, Universityof InternationalCentre WesternAustralia Directorof International Programs WoodcroftCollege Director,Education AustralianChamber Employmentand ofCommerceand Training Industry(ACCI) AustralianCouncilof PrivateEducation andTraining(ACPET) Australian GovernmentSchools International(AGSI)

EDU

PEAK

Field

Claire

NationalExecutive Officer

PEAK

Webber

Elizabeth

Chair

PEAK

135

SURNAME

FIRSTNAME

Melville

Tony

Hicks

Mary

POSITION Director,Public Affairsand Government Relations DirectorEducation Employmentand Training

ORG

ABRV.

AustralianIndustry Group AustralianChamber ofCommerceand Industry(ACCI) AustralianCouncilof PrivateEducation andTraining(ACPET) Australian GovernmentSchools International(AGSI)

PEAK

PEAK

Field

Claire

NationalExecutive Officer

PEAK

Webber

Elizabeth

Melville

Tony

Hunt Tyson Cook Blundell Arkell Maroya

David Eileen Helen Sue Richard Alex

Chair Director,Public Affairsand Government Relations VicePresidentChief OperatingOfficer GlobalDivision Director,Client Relations AssociateDirector ofClientRelations ExecutiveDirector GeneralDelegate

PEAK

AustralianIndustry Group

PEAK

Duckworth

Colin

Holmes

Anne

Boffa

Stefan

EducationalTesting Service(ETS) EducationalTesting Service(ETS) EducationalTesting Service(ETS) EnglishAustralia EnglishAustralia MasterBuilders Director,Training Association MotorTrades Associationof SeniorPolicyOfficer Australia NationalEnglish Language Accreditation ExecutiveDirector Scheme(NEAS) NationalEnglish Language Operations Accreditation Manager Scheme(NEAS) UniversitiesAustralia DVC(I)Groupand PVC(I)UNSW UniversitiesAustralia BoxHillInstitute BusinessCouncilof Australia CFMEU

PEAK PEAK PEAK PEAK PEAK PEAK

PEAK

PEAK

PEAK

Lang WithersAO Ross Coleman Noonan

Jennie DrGlenn Carole Patrick Dave

Chair ChiefExecutive Officer CentreManager Director,Policy NationalSecretary

PEAK PEAK EDU PEAK PEAK

136

SURNAME

FIRSTNAME

POSITION

Li Shipstone Sutton Kinnard Bastian King

Rongyu Tim John Bob Paul Conor

ExecutiveDirector IndustrialOfficer NationalSecretary NationalResearch andPolicyOfficer NationalPresident ExecutiveDirector

ORG DeakinUniversity (andIEAABoard Member) ACTU CFMEU CFMEU AMWU InnovativeResearch Universities International Education Associationof Australia(IEAA)

ABRV.

EDU PEAK PEAK PEAK PEAK PEAK

Murray

Dennis

ExecutiveDirector DeputyVice ChancellorandVice President (Internationaland FutureStudents)

PEAK

Rosenberg

ProfessorJohn

Stinson ByrneAO

Liz

Jeremenko Birrell Yang GardnerAO Lamont Riordan Holden

Director ViceChancellorand ProfessorEdward President SeniorAdviser, Governmentand Megan ExternalRelations Bob Director,Future Students Sunny Professor ViceChancellorand Margaret President ExecutiveDirector, Ailsa International Martin Peter CEO Director

LaTrobeUniversity LaTrobeUniversity (andIEAABoard Member) MonashUniversity

EDU

EDU EDU

MonashUniversity MonashUniversity MonashUniversity RMITUniversity RMITUniversity TAFEDirectors Australia TAFEDirectors Australia TAFEDirectors Australia/Holmesglen InstituteofTAFE TheAcademyofthe SocialSciencesin Australia BlueMountains Internationalhotel ManagementSchool Councilof International StudentsAustralia

EDU EDU EDU EDU EDU PEAK PEAK

MacKenzie

Bruce

Chair/CEO DeputyExecutive Director

EDU

Douglas

Will

PEAK

Bentley

Guy

CEO

EDU

Atcheson

Robert

NationalPresident

PEAK

137

SURNAME McComb

FIRSTNAME Adrian

POSITION ExecutiveOfficer ExecutiveDirector, International Programs ExecutiveGeneral Manager DeputyPVC, Business International Director,Policy Analysisand Communication HeadofSchool, MemberofCouncil Director Director,Masterof IndustrialProperty ProgramFacultyof Law Director,UTS International Manager,UTS International Recruitment Director Manager, Government Relations DeputyVice Chancellor(I) DeputyDirector Professional ServicesManager ChiefExecutive Officer

ORG CouncilofPrivate HigherEducation

ABRV. PEAK

Taylor Fraser

Alison Lyndell

MacquarieUniversity EDU Navitas EDU

Tam

OnKit

RMITUniversity TheUniversityof Sydney UICSydney UNSWInternational

EDU

Payne McCarthy Voninski

Tim Jenny Alek

EDU EDU EDU

Stoianoff Chuah

Natalie TzeAy

Universityof TechnologySydney Universityof TechnologySydney Universityof TechnologySydney VictorianUniversity International

EDU EDU

Cui Berridge

Connie Steven

EDU EDU

Elms Hawkins Dowsett Lane Fee INTERNATIONAL India

Martin ProfessorKen Dallas Kevin Mariann

CQUniversity CQUniversity TheUniversityof Queensland MigrationInstituteof Australia TheUniversityof Melbourne

EDU EDU EDU PEAK EDU

Singh Dasgupta

Sujatha Amit

IndianHigh Commissionerto Australia IndianConsul General,Sydney

Canberra Sydney MinisterforHuman Resource Development MinistryofHuman Resource Development

INDIAGOVT INDIAGOVT

Sibal

Kapil

Minister Secretary,Higher Education

INDIAGOVT

PuriDas

Vibha

INDIAGOVT

138

SURNAME

FIRSTNAME

Vaish

Anshu

POSITION Secretary,Schools Educationand Literacy

ORG MinistryofHuman Resource Development MinistryofOverseas IndianAffairs

ABRV.

INDIAGOVT

Singh

Didar

Tiwari

Atul

Sahni

Vijay

Secretary JointSecretary, FinancialServices andEmigration Policy JointSecretary, DiasporaServices andProtector Generalof Emigrants

INDIAGOVT

MinistryofOverseas IndianAffairs

INDIAGOVT

MinistryofOverseas IndianAffairs

INDIAGOVT

Bardhan

Anand

Director,Emigration MinistryofOverseas Policy IndianAffairs Director,Emigration MinistryofOverseas Services IndianAffairs Director,Diaspora Services Secretary JointSecretary (South) ChiefSecretary Chairman Trade Commissioner Counsellorand Head,Advocacy ProgramPublic Diplomacy,Media, Academicand CulturalRelations MinisterCounsellor Immigration Director,Education BritishCouncilIndia andSriLanka Counsellor Immigration Education Counsellor MinistryofOverseas IndianAffairs MinistryofExternal Affairs MinistryofExternal Affairs Governmentof Karnataka UniversityGrants Commission HighCommissionof Canada,NewDelhi

INDIAGOVT

Badhok

RC

INDIAGOVT

Sangawan Reddy Goel Ranganath Prakash Beg

Yogeshwar Latha ArunK SV Ved Faisal

INDIAGOVT INDIAGOVT INDIAGOVT INDIAGOVT INDIAGOVT CANADA GOVT

Cridland Manicom

Simon David

HighCommissionof Canada,NewDelhi HighCommissionof Canada,NewDelhi BritishCouncil,New Delhi

CANADA GOVT CANADA GOVT

Goggin

Sally

UKGOVT

Dix

Chris

Chapman

Melanie

UKHighCommission, NewDelhi UKGOVT NewZealandHigh Commission,New Delhi NZGOVT

139

SURNAME

FIRSTNAME

POSITION BranchManager Immigration

Park

Chris

Thornhill

Elizabeth

Glazeroff

Josh

VisaChief

ORG NewZealandHigh Commission,New Delhi Embassyofthe UnitedStatesof America,NewDelhi Embassyofthe UnitedStatesof America,NewDelhi UnitedStates DepartmentofState Officeofthe InspectorGeneral NewDelhi Embassyofthe UnitedStatesof America,NewDelhi

ABRV.

NZGOVT

USAGOVT

USAGOVT

Sajona

Lavon

LeadSecurity Inspector MinisterCounsellor forConsularAffairs

USAGOVT

Herman

James

USAGOVT

Duhan Kamineni

Balbir Priya

GMTraining International RegionalManager CountryDirector India Manager,India Office ViceChancellor, Chairman,Distance EducationCouncil DirectorSouthAsia AdjunctProfessor CountryManager ManagingDirector andCEO ViceChancellor SeniorDirector Chairman GM(Selection) GM(CivilSelection) GeneralManger

BrentfordInstitute forTechnicalTraining EDU BondUniversity DeakinUniversity AustraliaDeakin InternationalIndia EdithCowan University GriffithInternational India IndiraGandhi NationalOpen University Queensland Universityof Technology Universityof Melbourne NationalSkill Development Corporation UniversityofDelhi Confederationof IndianIndustry DynamicStaffing Services DynamicStaffing Services DynamicStaffing Services DynamicStaffing Services EDU

Pahwa Chauhan Malhotra

Ravneet Anita Ashini

EDU EDU EDU

RajasekharanPillai

VN

EDU

Nuna Mirchandani

Sheel Vinod

EDU EDU

Chenoy Singh Das Khosla Sharma Tyagi Dua

Dilip Dinesh Anjan SP DP SC KK

EDU EDU PEAK OTHER OTHER OTHER OTHER

140

SURNAME

FIRSTNAME

POSITION GlobalEducation Consultant RegionalDirector, SouthAsia Head,Marketing (SouthAsia)& ClientRelations GeneralManager, HumanResources ManagingDirector CEO ManagingDirector VicePresident SouthAsiaRegional MarketingManager ConsultingEditor Principal Correspondent EditorinChief Cofounderand Memberofthe Board AssociateVice PresidentHRD UKBorderAgency UKBorderAgency

ORG KaaiserInternational Education IDPEducationIndia PrivateLimited IDPEducationIndia PrivateLimited LeightonContractors (India)PvtLtd GlobalReach IAEIndiaVenues KangarooStudiesPvt Ltd AAERI PerthEducationCity TimesofIndia TimesofIndia PressTrustofIndia ThePioneer InfosysTechnologies Limited InfosysTechnologies Limited Embassyofthe People'sRepublicof ChinainAustralia Embassyofthe People'sRepublicof ChinainAustralia

ABRV.

Chandok Pental

Kapil Harmeet

OTHER OTHER

Sood

Raja

OTHER

Vittal Singh Bhutani Kumar Johar Qureshi Padgoankar Bagchi Kulakamrni MitraMP

Ramganesh Ravi Arun Gulshan Bubbly Jamal Dileep Indrani Sagar Chandan

OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER

Dinesh

OTHER

Joshi UnitedKingdom Laker Bell China

Eshan Jo Amy

OTHER UKGOVT UKGOVT

Wei

Zhang

Counsellorand ConsulGeneral

CHINA GOVT CHINA GOVT

Yang

Zhongbo

SecondSecretary Counsellor, Consular Department DeputyDirector, Consular Department FirstSecretary, Consular Department

Qi

Mei

MinistryofForeign Affairs

CHINA GOVT

Qiao

Jie

MinistryofForeign Affairs

CHINA GOVT

Zhao

Peijun

MinistryofForeign Affairs

CHINA GOVT

141

SURNAME Hui Stvan Board Heath

FIRSTNAME Zhou Martina SteffanMiles Matt

POSITION DeputyDirector Counsellor/Deputy ProgramManager FirstSecretary RegionalManager AssistantDirector, Education Marketing MinisterCounsellor forConsularAffairs

ORG

Qin

Li

Donahue

LindaL

Yang Burrows

Will Bruce

ProgramManager MinisterCounsellor ProgramOfficer, Divisionfor ExchangePrograms VicePresident (International) President DeanofAsia AustraliaBusiness College International Manager ExecutiveHeadof SydneyInstituteof Languageand Commerce ExecutivePresident

ABRV. CHINA MinistryofEducation GOVT CANADA EmbassyofCanada GOVT CANADA EmbassyofCanada GOVT Embassyofthe UnitedKingdom UKGOVT Culturaland EducationSection, Embassyofthe UnitedKingdom UKGOVT ConsulGeneralof theUnitedStatesof America USAGOVT Embassyofthe UnitedStatesof AmericaChina USAGOVT EmbassyofNew Zealand NZGOVT

Shuo Li Cheng

Wang Yansong Wei(Professor)

PekingUniversity PekingUniversity LiaoningUniversity

EDU EDU EDU

Zhou Bentley

Jie(Professor) John

LiaoningUniversity VictoriaUniversity

EDU EDU

Gong Zhou Hands Poole

Sally Zhewei Tom Belinda

Peng Sun

Sang Charles

President ChairmanandCEO Managerof Australian Department

ShanghaiUniversity ShanghaiUniversity Austcham Austcham BeijingOverseas StudyService Association ChinaEducation International HanTerry Consultancy HanTerry International Education ChinaEducation International

EDU EDU OTHER OTHER

OTHER OTHER

Pan

Penny

OTHER

Sun Sun

Susan Charles

ManagingDirector

OTHER OTHER

142

SURNAME Liu Tian Xun Gao Dai Chen Zhu Malaysia

FIRSTNAME Tao Tracey Monica Chris Karen Phoenix Rebecca Vivian Philip Sunny Luyi Yanmin Dato'Seri Mohammad Khaloed

POSITION President

ORG DongFangICEF BeijingAusCanada BeijingWuhu Zhongshi ChivastEl ChinaStarCorp BeijingAceleader CEC NewOrientalVision BeijingEduglobal Audji JJLOverseas Education JJLOverseas Education JJLOverseas Education

ABRV. OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER

Nordin

Faridah

Datuk'

Ali

DatukFarida Mohd FauzanaBinti Abdul

MinisterforHigher Education DeputyDirector General (Development) DeputyDirector GeneralofPublic Service (Development)

MinistryofHigher Education PublicService Department PublicService Department Malaysia PublicService Department Malaysia PublicService Department Malaysia PublicService Department Malaysia HELPUniversity College HELPUniversity College CurtinUniversity, Singapore

MALAYSIA GOVT MALAYSIA GOVT

MALAYSIA GOVT MALAYSIA GOVT

Muhi

Don

Dato'Mohd TajudinBin

AssistantDirector Director,Human Capital Development Division

MALAYSIA GOVT MALAYSIA GOVT EDU EDU EDU

Hashim Yoke Chan Neilsen

MDRadziBin DatinChanLow Kam

DeputyDirector CEOandCo Founder PresidentandCo DatukDrPaulTH Founder John ProViceChancellor

Anderson Pollard Cochrane Tan

Dale Robin Robert Angeline

CEO ProViceChancellor andPresident ProViceChancellor

JamesCook University,Singapore EDU MonashUniversity, Malaysia EDU NewcastleUniversity AUGGlobalNetwork EDU OTHER

143

SURNAME Wong Pan Hii Low Shah Klass Chiew Toh Lam Mausomi Mesgara Geseh Cindy Folk Koay Leong Other Baird Crowe Andrew Pollock Pearcey Rodgers

FIRSTNAME Janet Mable Joseph Teddy Alpa Paula Subrinna Michael Aileen Max Mahdis Rosidah Anita MichaelJC Kevin JiLi Bruce Des Michael Anthony Laurie Lesley

POSITION PrincipalConsultant NationalChief ExecutiveOfficer AustralianChairman ChiefExecutiveand ManagingDirector ChiefExecutive Officer ExecutiveAssistant, NationalSecretariat

ORG CarltonEducation Network E&MEducation CounsellingCentre GENEducation GENEducation IAEC IDPEducation Australia iEduCareServices iEduCareServices JMEducation CounsellingCentre MYCEnterprise MYCEnterprise NazzaEducation NazzaEducation ProbizBusiness Services Studylink Studylink AustralianHotels Association(AHA) KPMG IDPEducationPtyLtd AustraliaChina BusinessCouncil AustraliaChina BusinessCouncil AustraliaChina BusinessCouncil NSW AustraliaChina BusinessCouncil NSW HuntandHunt ITC AustraliaChina Business Council/Kennedy StrangLegalGroup SharonHarrisand Associates LawInstituteof Victoria LawInstituteof Victoria

ABRV. OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER OTHER

Janis

Marika

Director

OTHER

Jin Harrowell O'Halloran

David Jim Paul

ExecutiveAssistant Partner,Arbitrator RegulatoryAffairs Manager

OTHER OTHER OTHER

Jockel Harris Helm

Maria Sharon Laura

Principal MigrationSpecialist LegalPolicyand PracticeLawyer TanandTan Lawyersand Consultants

OTHER OTHER OTHER

Ma

Jensen

OTHER

144

SURNAME

FIRSTNAME

Ford Rodan Stratton Italiano DaGamaPereira Lee Mathews

Carina Erskine David Joseph Valerie Jennifer James

POSITION CarinaFord Immigration Lawyers ErskineRodanand Associates NevettFord Melbourne JosephItalianoand Associates DaGamaPereira andAssociates RussellKennedy AccountManager Director,Client Services

ORG LawInstituteof Victoria LawInstituteof Victoria LawInstituteof Victoria LawInstituteof Victoria LawInstituteof Victoria LawInstituteof Victoria ParkerandPartners IGraduate InternationalInsight

ABRV.

OTHER OTHER OTHER OTHER OTHER OTHER OTHER

Brett

Kevin

OTHER

145

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146

Appendix3

AustralianGovernment 3February2011

SubmissionsInvitedforStudentVisaReview
TheHonMichaelKnightAOtodayissuedacallforsubmissionstothereviewofthe studentvisaprogram. TheinternationaleducationsectorisimportanttoAustraliainestablishingbilateral tieswithkeypartnercountriesandsupportsemploymentinabroadrangeof occupationsintheAustralianeconomyaswellasdeliveringhighvalueskillstothe economy. Toassistthosewishingtocontributetothereview,Iwillreleaseadiscussionpaper inearlyMarchwhichwilloutlinesomeofthekeyissues,particularlythosethathave beenraisedbystakeholdersinmyinitialroundofconsultations,MrKnightsaid. AlreadyitisclearthatthereisalotofinterestinthisareasoIanticipatereceiving goodqualityfeedbackfrominterestedorganisationsandindividuals. Submissionsaddressingthetermsofreferencecanbemadeuptoandincluding15 April2011,whentheperiodforacceptingsubmissionswillclose.Submissionsthat donotaddressthetermsofreferenceareunabletobeconsideredaspartofthe review.See:TermsofReferenceStrategicReviewoftheStudentVisaProgram(70KB PDFfile) MrKnightisarrangingconsultationswithgovernmentandindustrythroughout Australiaandwillalsobeinvestigatingmajorstudentsourcesandcompetitor countriestogainabroaderappreciationofinternationaleducationandtheroleof studentvisasystems. Thereviewaffordseducationprovidersandstakeholderswithanimportant opportunitytosharetheirvisionofthesectorsfuture,MrKnightsaid. Iencourageallinterestedstakeholderstocontributetothereviewprocess. TheMinisterforImmigrationandCitizenshipChrisBowenandtheMinisterfor TertiaryEducation,Skills,JobsandWorkplaceRelations,SenatorChrisEvans, announcedMrKnightsappointmentandthereviewon16December2010. MrKnightisduetodeliverhisreporttothegovernmentbymidyear. TheguidelinesformakingasubmissionareavailablefromtheDepartmentof ImmigrationandCitizenshipwebsite.See:SubmissionInvitedforStudentVisa Review

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148

Appendix4

SubmissionstotheReview
Number 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031 032 033 034 035 036 037 038 039 040 Submission CouncilofDeansandDirectorsofGraduateStudiesinAustralia AsiaPacificInternationalCollege RachnaRaval InternationalTravelEducationandBusinessServices TimothyCunningham MurtazaBilgrami AbhishekMehta FranzKratschmer AndrewWeidaLiew SachinPabalkar NavitasEnglishPerth KevinLeGrice MohammadTahirIqbal Bivisa RitaBatra MigrateAustraliaSouthAustraliaPtyLtd NarulaInternational Roman CONFIDENTIAL GangaReddy CONFIDENTIAL EasyMigrateConsultancyServices KSSingh MacquarieEducationGroupAustralia DebashiaChanda CONFIDENTIAL AnthonyReederAustralianCatholicUniversity AustraliaIndiaSocietyofVictoriaInc. WestCoastInternationalCollegeofEnglish NicholasBaxfield KevinLeGrice CharlesDarwinUniversity AustralianInformationCommissioner AssociationofAustralianEducationRepresentativesinIndia SonyaSingh ChinaEducationInternational KellyColleges CanningCollege CentralQueenslandUniversity StPaul'sInternationalCollege 149

Number 041 042 043 044 045 046 047 048 049 050 051 052 053 054 055 056 057 058 059 060 061 062 063 064 065 066 067 068 069 070 071 072 073 074 075 076 077 078 079 080 081 082 083 084 085

Submission CONFIDENTIAL CONFIDENTIAL JohnPaulInternationalCollege(Submission1) JohnPaulInternationalCollege(Submission2) QueenslandCatholicEducationCommission BerniceOng MaryAncich CONFIDENTIAL JohnJamesQuintero Krishna AustralianAssociationofAviationandAerospaceIndustries PerhimpunanPelajarIndonesiaAustralia SummanJehan DavidNelson AcademyoftheSocialSciencesinAustralia JieFan NapaleseAssociationsofAustralianEducationRepresentatives CONFIDENTIAL EnglishAustralia UniversityofBallarat MercedesCollege CarlHoltman CanterburyTechnicalInstitute SouthAustralianGovernment AustralianEducationAssessmentServices ChengduHuayingConsultingandServiceCo.Ltd AustralianCollegeInformationCentre BusinessSA FundsV GroupofEight ChristopherRileyAustralianCatholicUniversity NationalEducationalConsultancies'Association TrishSwart InternationalEducationServices VictoriaUniversity KennyYang GriffithUniversity CONFIDENTIAL CONFIDENTIAL BondUniversity CharlesSturtUniversity NationalTertiaryEducationUnion SatishPatel Medibank VisionInternational 150

Number 086 087 088 089 090 091 092 093 094 095 096 097 098 099 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128

Submission AustraliaChinaBusinessCouncilofVictoria InternationalCollegeofHotelManagement AssociationofAustralianHotelSchools CouncilofPrivateHigherEducationInc AustralianGovernmentSchoolsInternational AustralianDepartmentofInnovationIndustry,Scienceand Research InternationalStudentLegalAdviceClinic TheGordonTAFE FederationofForeignEducationConsultantsinIndia FrancaustraliaEducation AtlasEducationConsultantsPvtLimited ThinkBefore StudyGoldCoast RobertMenziesCollege NationalEnglishLanguageTeachingAccreditationScheme Limited CONFIDENTIAL AustralianNationalUniversityCollege CambridgeESOL EducationalTestingService TheUniversityofWesternAustralia SwinburneUniversityofTechnology TheRoyalMelbourneInstituteofTechnology QueenslandDepartmentofEducationandTraining SouthernCrossUniversity CONFIDENTIAL DeakinUniversityStudentAssociation GrangerAustralia TheUniversityofSydney HospitalityTrainingAssociation UniversityofTechnologySydney NudgeeInternationalCollege IndependentSchoolsCouncilofAustralia TheUniversityofMelbourne AustraliaGo LawInstituteofVictoria AustChamBeijing AustralianAcademyofScience QueenslandUniversityofTechnology CONFIDENTIAL SydneyUniversityPostgraduateRepresentativeAssociation AutomotiveTrainingVictoria AustralianNationalUniversity Student'sRepresentativeCouncilTheUniversityofSydney 151

Number 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 143 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171

Submission EthnicCommunities'CouncilofVictoria InternationalEducationAssociationofAustralia SydneyCollegeofEnglish AustralianDepartmentofResources,EnergyandTourismand TourismAustralia FederationofEthnicCommunities'CouncilofAustralia CharltonBrown MasterBuildersAustraliaLtd CPAAustralia RobertHughes AustralianServicesRoundtable CONFIDENTIAL UniversitiesAustralia CommonwealthOmbudsman CONFIDENTIAL Navitas CouncilonAustraliaLatinAmericaRelations ISANAInternationalEducationAssociationInc UniversityofSouthernQueensland AustralianInternationalEducationCentreQUESTHungary TheAustralianInstituteofWelfareandCommunityWorkers IndianHighCommissionCanberra WollongongUniversity CarnegieMellonUniversity IDPAustralia CONFIDENTIAL AustralianPacificCollege CouncilofInternationalStudentsAustralia NewcastleUniversity WoodcroftCollege NationalTourismAlliance MacquarieUniversity CompetitiveCareersPtyLtd VictorianEmployers'ChamberofCommerceandIndustry EducationConsultantAssociationofAustralia UnitedVoice MigrationSolutions NationalUnionofStudents MigrationInstituteofAustralia CONFIDENTIAL TasmanianGovernmentEducationandTrainingInternational andUniversityofTasmania AustralianTechnologyNetwork InterfaceInternational TahirIqbal 152

Number 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202

Submission MEGTEducationGroup AustralianNationalUniversityStudents'Association AustralianCouncilforPrivateEducationandTraining JohnFindley CONFIDENTIAL RestaurantandCateringAustralia NationalCatholicEducationCommission GeoffClark JanakPathak KenyanHighCommissionCanberra CONFIDENTIAL BusinessCouncilofAustralia VictorianAutomobileChamberofCommerce DiscoverEnglish CLBTrainingandDevelopment ToorakCollege IvanhoeGrammarSchool LaTrobeUniversity ImmigrationLawyersAssociationofAustralasia AustralianCouncilofTradeUnions AustralianFederationofInternationalStudents Construction,Forestry,MiningandEnergyUnionofAustralia SouthAustralianDepartmentofTradeandEconomic Development InnovativeResearchUniversities TAFEDirectorsAustralia StateGovernmentofWesternAustralia StateGovernmentofVictoria CommunityRelationsCommission CONFIDENTIAL AustralianDepartmentofDefence StateGovernmentofNewSouthWales

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154

StudentVisaApplicationProcess

Online e-lodgement must provide: VAC e CoE

AL1 DIAC
COMMON CRITERIA
English Proficiency As accepted by provider Academic Record Just provide details

AL1
Paper lodgmemt must provide VAC e CoE

AL1

STUDENT APPLIES
with CoE or Letter of Offer

AL 2,3,4 on eVISA TRIAL PATH

Residing in PRC India Indonesia Thailand Participating Agent

Online e-lodgement must provide: VAC eCoE Paper lodgmemt must provide eCoE VAC

Financial Capacity Capacity to cover: - Airfares - Course tuition fees - Living costs $18,000 Must provide evidence that funds are genuinely availiable

AL2
English Proficiency As accepted by provider Academic Record AL2 Post Graduate must provide evidence of study and training

AL2
Confirmation of Enrolment (Electronic)

AL3
English Proficiency ELICOS / Schools - as accepted by provider VET 5.5 or 4.5 + ELICOS HE 6.0 or 5.0 + ELICOS PG 6.0 or 5.0 + ELICOS Academic Record Must provide evidence of study and training If there are more than 3 months prior to commencement DO NOT GRANT

VISA GRANTED

AL3
Paper Lodgement AL 2 / 3 / 4 / 5 Must provide letter All countries not included of offer or CoE (must contain in the eVISA TRIAL entry level, couse, PATH CRICOS code, Start and Finish dates)

Pre Visa Assessment AL 3 / 4 / 5

AL4

Assesses whether English Qualifications Financials are met

Health Must be of sound health Applicants from medium and higher risk countries must undergo medical examination and chest x-ray Must have health insurance through O/s student health cover

AL4
English Proficiency ELICOS: min 5.0 VET: min 5.5 or 5.0 + ELICOS HE: min 6.0 or 5.0 + ELICOS PG: min 6.0 or 5.0 + ELICOS Academic Record Must provide evidence of study and training

DIAC issues letter to Provider authorising provider to issue CoE

AL5
Provider issues CoE

Character Requirements Must be of good character Must make character declaration May be asked to provide Police certificate/s

AL5
Academic Record Must provide evidence of study and training

Appendix5

Appendix5

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156

PRISMSNCN/SCVPROCESS
Student completes course without raising any non compliance issues Extension to same course SCV 23

Appendix6

COMMENCEMENT

Same sector, different course, gap created at the end of the course SCV 26 Same sector, same or different course not within the boundaries of SCV 23-26 SCV 27

Student continues without raising non compliance issues

Visa granted for cancelled CoE SCV 14

Change to course in different sector SCV 24 Same sector, different course, gap created at either the start or end of the course SCV 25 Provider unable to deliver course SCV 22 Student left Provider (transferred to Course at Other Provider) SCV 9 Student Course Cancelled (provider ceased operation) SCV11 Student unable to start course (Provider suspended) SCV 12 Deferring/suspending student enrolment Compassionate or Compelling circumstances SCV15

BREACH 8516
Circumstances applicable to grant

D I A C N O T I F I E D

NON COMPLIANCE NOTICE RAISED AFTER 28 DAYS*

* If Student does not have current student visa with more than 28 days until expiry the SCV will not convert and no finalisation code will be sent

COMMENCEMENT

STUDENT VISA GRANTED

Student notifies Cessation of Studies SCV 16 Non-payment of fees SCV 18 Disciplinary Reasons SCV 19 Deferring/suspending student enrolment - Student misbehaviour SCV 21 Student Course Cancelled (Provider still operating) SCV7 Student Completed course early SCV 5

BREACH 8202 Maintains enrolment in a registered course

NON COMMENCEMENT SCV 6

Change to CoE details SCV 4 No Longer holding student visa SCV 17

SVC Not Sent to DIAC and or not available

NON COMPLIANCE NOTICE NOT RECEIVED

COMMENCEMENT

UNSATISFACTORY ATTENDANCE NCN 8

BREACH 8202
Attendance requirements

Section 20 Notice issued by Provider,

Student to report to DIAC within 28 days OR

UNSATISFACTORY COURSE PROGRESS NCN 10

BREACH 8202
Course Progress Requirement

VISA AUTO CANCELLED

*3yr exclusion period may apply

Non-approval of welfare (not an SCV) NCN 28 Student Deceased NCN 20

BREACH 8532
Student maintains adequate welfare arrangements

Pending investigation Visa may be cancelled/ceased

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158

Appendix7

CurrentSummaryoftheAssessmentLevel(AL)frameworkasofJune2011
Tobegrantedastudent(subclass570576)visa,prospectivestudentsmustmeetlegislative requirementsrelatingtotheirfinancialcapacity,Englishlanguageproficiency,and educationalqualifications. Theamountofevidenceaprospectivestudentmustprovidetodemonstratetheymeet theserequirementsisbasedontheirAssessmentLevel(AL).ALsareprescribedaccordingto thepassporttheprospectivestudentholdsandtheeducationsectoroftheirproposed courseofstudy.TherearefiveALs:AL1hastheleastevidentiaryrequirementsandAL5has themost. Thereareanumberofdifferenttypesofstudentvisas.Eachstudentvisasubclass representsaparticulareducationsector: Subclass570IndependentELICOS Subclass571Schools Subclass572VocationalEducationandTraining Subclass573HigherEducation Subclass574PostgraduateResearch Subclass575NonAward Subclass576AusAIDorDefence. Prospectivestudentsseekingtostudyonlyonecourseontheirstudentvisacanmatchtheir passporttotheeducationsectoroftheircoursetocalculatetheappropriateALfortheirvisa application. DIACprovidesalistofpassportcountriesandthecorrespondingALsforeachstudentvisa subclassfortheinformationofstudents.Thetablebelowprovidesanexampleofthislist:
Passport held Afghanistan Andorra Argentina Austria Bahamas Bahrain Bangladesh 570 ELICOS 3 1 2 1 2 1 4 571 Schools 2 1 1 1 2 1 4 572 VET 3 1 2 1 2 1 4 573 Higher Education 3 1 1 1 1 1 3 574 Postgrad. Research 2 1 1 1 1 1 2 575 Non Award 3 1 1 1 2 1 3 576 AusAID/ Defence all 576 travel documents are Assessmen t Level2

Notallpassportcountriesareincludedonthislist.Whereaprospectivestudentspassport isnotlisted,thentheirrelevantALisasfollows: 159

allprospectivestudentsseekingasubclass576(AusAIDorDefenceSector)visaare AssessmentLevel2; allprospectivestudentsseekingasubclass574(PostgraduateResearch)visaare AssessmentLevel2; allprospectivestudentsseekingoneoftheremainingstudentvisasubclasses, specifiedbelow,areAssessmentLevel3: 570IndependentELICOS; 571Schools; 572VocationalEducationandTraining; 573HigherEducation; 575NonAward.

FollowingarebriefsummariesofthemainpathwaysthatstudentstaketomeetSchedule 5Arequirements.Thesetablesarenotexhaustive.

160

AL
1

EvidenceofFinancialCapacity Allsectors: Giveadeclarationthatthe applicanthasaccesstofundsfor thefullperiodforcoursefees, livingcosts,schoolcostsandtravel costs.

EvidenceofEnglish languageproficiency Allsectors: Enrolmentbyeducation provider

Maximumdurationof ELICOSstudy Allsectors: nolimits

Otherrequirements IndependentELICOS: NIL Schools: Ifnotasecondaryexchangestudent,evidence thestudentisatleastsixyearsofageandhas educationalqualificationsasrequiredbythe provider. VET: NIL. HigherEducation: Educationqualificationsasrequiredbyprovider. PostgraduateResearch: Educationqualificationsasrequiredbyprovider. Nonaward: NIL.

161

AL
2

EvidenceofFinancialCapacity Allsectors: Evidenceoffundsfroman acceptablesource*forthefirst12 monthperiodandadeclaration thattheyhavefundsforremainder ofcourse.

*doesnotincludeanitemofproperty

EvidenceofEnglish languageproficiency Allsectors: Enrolmentbyeducation provider

Maximumdurationof ELICOSstudy Allsectors: nolimits

Otherrequirements IndependentELICOS: Educationqualificationsasrequiredbyprovider. Schools: Ifnotasecondaryexchangestudent,evidence thestudentisatleastsixyearsofageandhas educationalqualificationsasrequiredbythe provider. VET: NIL. HigherEducation: Educationqualificationsasrequiredbyprovider. PostgraduateResearch: Evidencethatthestudenthascompletedan undergraduatedegreeorequivalent. Nonaward: NIL. AusAID/Defence: Evidencethestudenthasthesupportofthe AusAIDorDefenceministerandtheexpected durationofstudy.

162

AL
3

EvidenceofFinancialCapacity Allsectors: Evidenceoffundsfroman acceptablesource*forthefirst24 monthperiodandadeclaration thattheyhavefundsforremainder ofcourse. Plusevidencethattheregular incomeofanyindividual(including theapplicant)providingfundsto theapplicantwassufficientto accumulatetheleveloffunding beingprovidedbythatindividual.
*includesamoneydepositheldforat least3monthspriortoapplication,a loanfromafinancialinstitutionanda loanfromhomegovernment.

EvidenceofEnglish languageproficiency IndependentEnglish LanguageIntensive CoursesforOverseas Students(ELICOS) andSchools: Enrolmentbyeducation provider

VocationalEducation andTraining(VET)and NonAward: 5.5InternationalEnglish LanguageTestingSystem (IELTS)or4.5IELTSwitha preliminaryELICOS course*

Maximumdurationof ELICOSstudy IndependentELICOS: 50weeks Schools:40weeks VET,NonAward, HigherEducation,and Postgraduate Research:30weeks

Otherrequirements IndependentELICOS: Evidenceofpreviousschooling,trainingorother study. Schools: Ifnotasecondaryexchangestudent,courseat least16monthsduration;completedsecondary schooltoyear6level;agelimitations(egless than17yearsoldwhencommencingyear9 studies);cantundertakestudiesatYear8or lower. VET: Successfullycompletedschoolingtoyear11level. HigherEducation: Successfullycompletedschoolingtoyear12level (withconcessionsforfoundation/CertIV courses). Nonaward: Successfullycompletedschoolingtoyear11level.

HigherEducationand PostgraduateResearch: 6.0IELTSor5.0IELTS withELICOScourse*

*amongotheroptions

163

AL
4

EvidenceofEnglish languageproficiency Allsectors: IndependentELICOS: Evidenceoffundsfromanacceptable 5.0IELTS source*forthefirst36monthperiod andadeclarationthattheyhave Schools: fundsforremainderofcourse. If16yearsoldorover, 5.0IELTSor4.0IELTS Plusevidencethattheregularincome withpreliminaryELICOS; ofanyindividual(includingthe waiveravailableforPRC applicant)providingfundstothe nationals. applicantwassufficientto accumulatetheleveloffundingbeing VETandNonAward: providedbythatindividual. 5.5IELTSor5.0IELTS withapreliminaryELICOS *includesamoneydepositheldbyan course acceptableindividual**foratleast6 monthspriortoapplication,aloanfrom HigherEducationand afinancialinstitutionandaloanfrom PostgraduateResearch: homegovernment. 6.0IELTSor5.0IELTS **acceptableindividualistheapplicant, withELICOScourse applicantsspouseordefactopartner,
applicantsparentsorgrandparents, applicantsbrothersandsistersoran uncleorauntoftheapplicantwhoisan Australiancitizen,permanentresidentor eligibleNZcitizenandusuallyresidentin Australia.

EvidenceofFinancialCapacity

Maximumdurationof ELICOSstudy IndependentELICOS: 40weeks Schools,Higher Education,and Postgraduate Research:30weeks VET,NonAward:20 weeks

Otherrequirements IndependentELICOS: Educationqualificationsasrequiredbyprovider. Schools: Courseatleast16monthsduration;completed secondaryschooltoyear9level;agelimitations (eglessthan17yearsoldwhencommencingyear 9studies);cantundertakestudiesatYear8or lower. VET: Successfullycompletedschoolingtoyear12level. HigherEducation: Successfullycompletedschoolingtoyear12level (withconcessionsforfoundation/CertIV courses); Nonaward: Successfullycompletedschoolingtoyear12level.

164

AL
5

EvidenceofFinancialCapacity Schools: Evidenceoffundsfromthe applicant*forthefullperiodplus fundsforafurther12months followingthefullperiod. Allothersectors: Evidenceoffundsfromthe applicant*forthefullperiod. Plusevidencethattheincomeof theapplicantwassufficientto accumulatethefunds.
*moneydepositsheldbytheapplicant for5yearspriortoapplication

EvidenceofEnglish languageproficiency Allsectors: IELTS7.0

Maximumdurationof ELICOSstudy IndependentELICOS: 40weeks

Otherrequirements IndependentELICOS: Educationqualificationsasrequiredbyprovider, Englishtuitionrequiredforemployment. Schools: Courseofatleast2years;completedsecondary schooltoyear9level;principalcoursewillassist theapplicant;agelimitations(eglessthan17 yearsoldwhencommencingyear9studies);cant undertakestudiesatYear8orlower. VET: Successfullycompletedschoolingtoyear12level; theprincipalcoursewillassistwithobtaining employmentorintheircurrentemployment. HigherEducation: Successfullycompletedschoolingtoyear12level; theprincipalcoursewillassistwithobtaining employmentorintheircurrentemployment. Nonaward: Successfullycompletedschoolingtoyear12level; theprincipalcoursewillassistwithobtaining employmentorintheircurrentemployment.

165