Study in Australia: Is The New Tax Plan for International Students Something to Worry About?

International students are worried about the proposed levy on their education that has been in discussion since July in Australia. This levy is an export tax on international students which is introduced to improve funding for research and infrastructure. 

The need for this tax was raised in the Universities Accord interim report. Furthermore, the final report is due to be released next month. Moreover, the Australian Education minister declared this will be a sovereign wealth fund. Additionally, this fund is to keep the education sector stabilised against economic turbulence around the world. 

Despite many people believing that the idea is going to jeopardise the international education sector, universities such as the University of Newcastle, the University of Technology Sydney and James Cook University have backed the idea. 

Pros and Cons

Pros: This initiative will provide an equal chance to all Australian universities. The GO8 universities in Australia share a major chunk of funding for research and development. However, the regional universities suffer from lesser funding and hence development slows down for them. This tax will help such universities to improve their educational and research facilities thereby benefitting students who enrol there. 

Cons: Though there are already a few taxes implemented on international students studying in Australia, this proposed levy is going to be a bigger amount. This will make it difficult for students with financial constraints to achieve their study abroad dreams. Moreover, no guidelines have been suggested for those already enrolled in Australian universities. Those in the middle of their educational journey are more confused.

As these students have their loans and budget already set. However, Australia will release the final report next month. It is expected to include the guidelines for such students as well. 

What to Expect and How to Prepare?

Regardless of this tax making a great debate, it is still one of the 70 ideas proposed to improve the funding in the education sector of Australia. Moreover, organisations and institutions such as the Property Council of Australia’s Student Accommodation Council, the Australian Business Deans Council, Queensland University of Technology and the Go8 universities have expressed major concerns regarding the implementation of this scheme. 

The Universities Accord ministerial reference group will make the final call in the meeting to be held next month. Though they will also consider the concerns raised by different groups if this decision does come to pass, here is what students preparing to study in Australia can do; 

• Go through the guidelines of taxation and what it implies. 
• If you have a scholarship, inform your scholarship providers about the hike in the cost of education and keep the university and visa authorities in the loop for any delays or discrepancies. 
• You can also apply for partially paid scholarships if the amount exceeds your budget. 
• Furthermore, if you have planned to study on an educational loan, you can revise your loan amount or opt for a new loan by showing a university-sponsored letter. 
• Opt for part-time work opportunities in Australia to pay off the loan interest amount. 
• Ask an expert for help! Fly Finance experts can guide you through such problems and make your journey smoother. 

Stay tuned for more updates on the University Accord final report to be released next month. If you want to read more such exciting information, make sure you follow Leverage Edu News Updates.