1st July means the start of a new financial year here in Australia.
Usually at this time of the year there are plenty of changes that are happening in the International Education space that impact international students.
In this article, we are going to discuss all the incoming major changes from 1st July 2023 for international students in Australia.
If you are an international student who is either planning to study here in Australia or currently studying in Australia, then read on.
Increase in Minimum Wage
The minimum wage in Australia is increasing from 1st July 2023.
Currently, the minimum wage here in Australia is $21.38 cents per hour or 812.60 for 38 hour work week (before taxes).
From 1st July 2023, this minimum wage will be increasing to $23.23 per hour or $882.80 per week for 38 hour work week (before taxes).
Considering many International students work on minimum wage levels, it is such an important relief especially during this cost of living crisis here in Australia.
Also, some workers in the aged care sector will also see a 15 percent increase in their wages from 1st July 2023.
Unfortunately, not everyone working in the aged care sector will be eligible for this 15% increase. As only some people working in the care areas and in the food sector are eligible for this increase.
If you want to check your eligibility for this increase in the aged care sector, then we suggest you check this website.
Increase in Superannuation Rate
Starting from the 1st of July, the superannuation rate will also be increasing.
Currently, it is 10.5% of employees eligible earnings but from 1st July 2023 it will be 11%. This increase will continue until it reaches 12% with annual increases of 0.5%.
Check this table below for superannuation guarantee rates over the years:
|Financial Year||Superannuation guarantee rates|
Source: Australian Tax Office (ATO)
Superannuation is your retirement fund which you can access after retirement in Australia or if you are leaving the country permanently.
Superannuation is paid on top of your wages or salary, so your employers can’t deduct money from salary for this payment.
Superannuation is calculated as a percentage of eligible salary or wages and from 1st July 2023, it will be calculated at 11%.
As an example, if you are working in a cafe as a waiter and earning $500 per week, then your superannuation will be 11% of $500, i.e. $55.
Your employer will deposit this money into your super fund account, usually every three months.
If you are working in Australia on a student visa, you could be eligible to get superannuation.
Increase in Student Visa Fee
The student visa application fee is also increasing from 1st July.
Currently, it is $650 to apply for a student visa.
But from 1st July 2023, it will be increased to $715, which is around 10 percent increase.
If your family member or a friend is visiting you, then they will also have to pay some additional money for their visitor visa. As the visitor visa fee is also increasing from $150 to $190.
If you are coming for a working holiday, then the fee is increasing from $510 to $640.
There is at least around 25 percent increase in some of the visa application fees in Australia.
Re-introduction of Work Restrictions for International Students
From 1st July 2023, work restrictions are coming back for international students.
It means students can only work 48 hours in a fortnight while their course is in session.
Currently, international students can work unlimited work hours until 30th June 2023.
The Australian government introduced unlimited work hours for international students during the pandemic, but these unlimited work hours are rolling back from 30th June 2023.
However, there are some exclusions to these work limitations, this includes:
- Unlimited work hours during official school holidays
- Students who are doing their Master’s degree by Research or a PhD degree
- Students who were working in the Aged care sector on or before 9th of May 2023 can continue to work unlimited work hours as well until 31st of December 2023.
If you want to know how to calculate your 48 hours per fortnight, then we suggest checking the video below:
Additional Post Study Work Visa
From 1st July 2023, there will be additional post-study work visas for students studying some specific in-demand qualifications in Australia.
In short, international students studying in certain in-demand occupations or courses can receive an extra 2-year post-study work visa.
These increase in timeframes for post-study work visas will look like this:
- Bachelor degree students from 2 to 4 years
- Master’s degree students from 3 to 5 years
- PhD students from 4 to 6 years
Keep in mind that this increase is only for students who are studying in those eligible courses.
We can divide these in-demand courses into 5 main categories:
- Health and Medicine
- ICT and
If you want to know a complete list of qualifications, then we suggest checking the Department of Education website.
Change in Graduate Work Stream Visa Application
From 1st July 2023, applications lodged for the Graduate Work stream will require a qualification on the relevant skilled occupation list.
Applicants will also be required to have a valid skill assessment in the nominated occupation when applying for a Graduate Work Stream visa from 1st July 2023.
Application lodged for a Graduate Work Stream Visa between 1 July 2022 to 30 June 2023, are not required to meet these requirements. So, the Australian Government is rolling back these requirements for applicants from the new financial year.
If you’re applying for this Graduate Work Stream Visa after 1st July 2023, you need to make sure that
- The qualification you are applying for is on the occupation list
- You have a valid skills assessment in the nominated occupation
Check the Department of Home Affairs website for more details on this update and for relevant skilled occupation lists.
Increase in TSMIT
From 1st July 2023, TSMIT will increase from $53,900 to $70,000 per year.
TSMIT (Temporary Skilled Migration Income Threshold) is the minimum wage for a sponsored worker to get a temporary skilled visa in Australia.
Employers need to make sure that they pay at least $70,000 per year if they are sponsoring skilled overseas employees.
As some international students might end up getting sponsored from their employers, this is a very important news update for them.
Changes for Overseas Driving License holders in New South Wales
From 1st July 2023, temporary visa holders who have resided in New South Wales for 6 months or more must convert their overseas driving license into a NSW license to drive in New South Wales.
The NSW government made these changes due to the road safety concerns presented by overseas license holders.
There will also be additional rules for overseas license holders in NSW.
Overseas driving license holders will lose the right to drive in NSW forever if they get 13 points or commit a serious offense while driving.
If they do, then they will need to get a NSW license if they want to continue driving in NSW.
Changes to Medical Examination
From 1st July 2023, it is anticipated that urine tests will no longer be part of medical examination for Australian Visa.
Anyone aged 15 years or above, will be required to take a blood test instead of a urine test for their medical examination when applying for Australian visas.
However, children between the age of 5 to 14 don’t need to undertake either urine or blood test unless it is clinically indicated for the Australian visa.
For more updates regarding changes in costs or these medical examination requirements, you can check the Department of Home Affairs website.
Alternatively, you can follow us on Instagram to get the latest updates.
So those were all the major updates that are coming into effect from the 1st July 2023 for international students in Australia.