Australia is facing a sharp rise in the number of international students who leave university within the first 12 months after starting.
A new analysis using federal education data shows that:
- The national first-year dropout (attrition) rate for international undergraduate students rose to 17.4% in 2023
- This is a major increase from 9.7% in 2018
- Around 14,873 international students left their university in just one year
This trend is now triggering political debate and government scrutiny.
📌 CQ University Records the Highest Dropout Rate
The most shocking figure comes from Central Queensland University (CQ University):
- Dropout rate: 57.2%
- Students leaving in first year: 616
That means more than half of international students who started there did not continue after the first year.
Other universities also showed high attrition:
- Flinders University – 44.3%
- La Trobe University – 33.5%
- Southern Cross University – 37.6%
Meanwhile, top universities like:
- Melbourne University – 3.6%
- Monash University – 4.8%
- UNSW – 4.1%
had much lower dropout rates.
This shows the issue is concentrated in certain institutions, not across all universities.
❓ Why Are So Many Students Dropping Out?
Experts say there is no single reason, but three major factors are being discussed:
- 💰 Cost of Living and Housing Crisis
Many international students struggle after arriving due to:
- High rent
- Accommodation shortages
- Rising living expenses
- Need to work long hours
CQ University itself admitted retention has declined because students face:
- Financial hardship
- Employment pressures
- Housing difficulties
Even genuine students may be forced to quit because studying becomes unaffordable.
- 🔄 “Course-Hopping” and Visa Misuse Concerns
A more controversial explanation is that some students may be using university enrolment mainly to:
- Enter Australia on a student visa
- Then leave the course early
- Switch providers or move into vocational programs (VET)
- Stay on bridging visas while working
A report suggests dropouts may indicate misuse of the visa system.
The article notes a huge increase in temporary migrants on bridging visas:
- Mid-2025: 107,274 people
- 2023: 13,034 people
Long visa processing times may allow people to remain in Australia and work while applications are reviewed.
- 🧑💼 Education Agents and Student Transfers
Another major issue is recruitment practices.
Some education agents earn commissions when students switch providers after arriving, creating incentives for:
- Aggressive “poaching”
- Students moving institutions quickly
- Study becoming secondary to work or migration outcomes
To address this, Education Minister Jason Clare proposed reforms including:
- Banning commissions paid for onshore student transfers
This rule is expected to take effect from 31 March 2026.
⚠ What CQ University’s 57% Dropout Rate Really Means
The article also explains that dropout data does not always mean students are abandoning education completely.
Attrition means leaving that specific university. Students may:
- Transfer to another university
- Move into vocational education
- Defer studies for personal reasons
- Return home
So, the number does not prove fraud, but it highlights serious system weaknesses.
🎯 What the Australian Government Plans Next
Australia is now moving in two directions:
✅ Stronger Integrity Controls
To prevent visa loopholes, course-hopping, and agent-driven churn:
- Restrictions on transfers
- Ban on commissions for onshore switching
- More regulation of education providers
✅ Better Student Support
To help genuine students stay enrolled:
- Housing support
- Financial assistance
- Early intervention programs
- Improved welfare services
🌍 Why This News Matters
Australia’s international education sector is one of the largest in the world and brings billions in revenue.
But rising first-year dropouts could lead to:
- Reputational damage
- Stricter visa rules
- More scrutiny on universities
- Harder conditions for genuine international students
The government now faces the challenge of tightening the system without harming legitimate students.
📞 Contact Us
For the latest international student visa updates, study abroad guidance, and trusted admission support, reach out to WAC Consultants today.
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