Melbourne, Australia —
For Indian students arriving in Australia in search of a degree, part-time work and a foothold in an international career, the arithmetic is becoming increasingly difficult.
A student can have a university admission, a valid visa and the legal right to work — and still struggle to make everyday life financially sustainable. In Melbourne, one Indian student interviewed by The Indian Express said she had applied for around 300 jobs but received only two or three callbacks, highlighting how fiercely competitive the entry-level job market has become. At the same time, accommodation costs continue to consume a large share of student budgets.
The pressure is not limited to Indian students. Australia’s wider international education system is confronting a combination of higher rents, rising living costs, tighter migration settings and growing scrutiny of international student numbers.
For Indian families weighing whether to study in Australia in 2026, the question is no longer simply which university offers the right course. It is also whether the student can afford the city, find sufficient work within visa rules and navigate an increasingly selective post-study environment.
Australia Student Rent Crisis Is Changing the Study-Abroad Equation
The cost of housing is at the centre of the problem.
Universities Australia, which represents 38 major Australian universities, said in September that student rents had increased by around 40% since 2021. Over the same period, it reported increases of 27% in grocery prices, 39% in utilities and 43% in fuel.
That matters particularly for international students because accommodation is not a peripheral expense. It is one of the first costs a student must solve after arriving.
For students in major cities such as Melbourne and Sydney, proximity to university can itself carry a premium. Students who move farther away may find cheaper accommodation but face longer commutes and additional transport costs.
The result is a difficult trade-off: pay more to live closer to campus or save on rent and spend more time and money travelling.
Why a 40% Rise Matters More Than It Sounds
The 40% figure is a cumulative increase from the 2021 baseline, not a 40% jump in rents during 2026 alone. But its significance lies in how it has compounded with other expenses.
Universities Australia estimates that the basic cost of maintaining a student standard of living rose 29% between 2021 and 2026, compared with 24% economy-wide inflation. Student spending, meanwhile, rose only 21%, suggesting that students have been cutting back to cope with higher costs.
For an Indian student whose family has already converted a large tuition and living-cost budget into Australian dollars, those increases can quickly alter the original financial calculation.
Indian Students in Australia Are Feeling the Job Squeeze
The second pressure point is employment.
Australia’s minimum wage is A$26.44 an hour from July 1, 2026, while international students on the standard student visa can generally work up to 48 hours per fortnight during study periods, with unrestricted hours during official course breaks.
On paper, the hourly wage may appear attractive compared with many student jobs in India.
The difficulty is securing those hours.
The experience reported by the Delhi student in Melbourne illustrates the gap between having permission to work and actually finding work. Hundreds of applications can produce only a handful of responses, while retail, hospitality and gig-work opportunities attract large numbers of international students.
That makes the student’s budget vulnerable to a simple problem: a legal work limit is useful only if sufficient paid work is available within that limit.
Australia Housing Crisis Is Bigger Than International Students
There is another part of the story that deserves attention.
International students do add rental demand, particularly around major university centres. But Australia’s housing shortage cannot simply be reduced to international students.
Research cited by Australia’s Reserve Bank found that about half of international students surveyed in 2023 rented in the private rental market. The RBA also concluded that international students were likely to have contributed only a small share of the increase in rents since the pandemic, with much of the rise in advertised rents occurring before international borders reopened.
More recent analysis similarly estimates that international students occupy roughly 4.4% to 5.4% of Australia’s rental housing nationally, although their impact is considerably more concentrated in university-heavy inner-city areas.
That distinction matters.
Blaming students alone can obscure the deeper problem: there are not enough homes and purpose-built student accommodation beds in the places where demand is concentrated.
For students, however, the cause of the shortage offers little immediate relief. Whether the pressure comes from population growth, limited construction, concentrated demand or a combination of factors, the rent still has to be paid.
Australia Student Visa Rules Are Adding Another Layer of Uncertainty
Housing is only one part of the changing Australia study-abroad landscape.
Australia has tightened its approach to international education and migration, including measures designed to prevent students from moving between courses primarily to extend their stay. The post-study pathway has also become more competitive, with qualifications, occupation, work experience and English-language ability among factors that can influence future migration options.
That changes the psychology of studying abroad.
A student who once viewed an Australian degree as a relatively straightforward sequence — study, work part-time, gain experience and seek a longer-term career opportunity — now faces a more complicated path.
The degree remains the centre of the decision. But the surrounding conditions have become much more important.
Australia Still Needs Skilled Graduates
There is an apparent contradiction at the heart of Australia’s international education debate.
The country is simultaneously tightening parts of its migration and international-student system while facing long-term demand for workers with higher-level qualifications.
Australia’s 2026 Intergenerational Report projects major changes to workforce requirements as artificial intelligence, population ageing, the energy transition and other economic shifts reshape the economy. It projects the proportion of Australians with university qualifications rising from about 40% today to 47% by 2065–66, while the Australian Universities Accord has set a higher ambition for young Australians.
Universities Australia has therefore argued that international education contributes not only to university finances but also to Australia’s future skilled workforce.
That argument is now colliding with the cost-of-living reality faced by students.
What Indian Students Need to Consider Before Choosing Australia
For prospective students, the latest developments point to a broader calculation than tuition fees.
1. Housing should be part of the university decision
The cheapest tuition option may not produce the cheapest overall study experience if accommodation and transport costs are substantially higher.
2. Part-time work should not be treated as guaranteed income
Visa rules may permit students to work, but employment depends on the local labour market, competition and the student’s schedule.
3. The city can matter as much as the university
Housing markets vary sharply between locations. A student choosing Australia should examine accommodation availability, commuting costs and realistic weekly expenses alongside rankings and course fees.
4. A post-study plan needs more than a degree
Migration rules can change. Students considering long-term employment in Australia need to understand that completing a course does not by itself guarantee permanent residency or a particular migration outcome.
The Australian Dream Looks Different From the Classroom
Australia remains a major destination for Indian students. India accounted for 16% of Australia’s international students in the year to June 2026, second only to China at 23%, according to figures cited by The Indian Express. Overall international student numbers were 687,810 during that period, down 7% from the comparable period in 2025.
But the numbers do not capture what happens after a student lands.
The harder story is found in the smaller details: an unanswered job application, a shared room far from campus, a rent payment that takes a larger slice of the monthly budget, or a student asking family back home for money despite having planned to support themselves.
That is the new reality behind the headline numbers.
For Indian students considering study in Australia in 2026, the country still offers globally recognised universities and career opportunities. But the old assumption that part-time work can comfortably bridge the gap between tuition, rent and living costs is becoming harder to sustain.
Australia’s international education model is entering a more demanding phase — for universities, policymakers and, most of all, the students trying to build a future there.
