Key Takeaways
- Australian student living costs have risen sharply since 2021, increasing financial pressure.
- Universities Australia wants broader concessions for domestic and international students.
- Indian students may benefit from cheaper public transport if reforms are adopted.
Universities Australia is urging the Albanese government to expand student concessions as Australian student living costs rise sharply, increasing financial pressure on university students.
Australian Student Living Costs Rise Sharply
Universities Australia, which represents 38 major institutions, says student rents have increased about 40% since 2021. Grocery prices have risen 27%, utility prices 39% and fuel prices 43%, according to the group’s analysis.
The organization estimates that Australian student living costs have increased 29% since 2021, compared with 24% economy-wide inflation. Student spending, meanwhile, has increased 21%, suggesting students are cutting back while directing more of their budgets toward necessities.
The pressure comes as Australia competes for international students amid rising living costs and tighter immigration settings. The measures sought by Universities Australia focus on everyday expenses rather than international tuition fees or student visa financial requirements.
Australian Student Living Costs Drive Push For Broader Concessions
Universities Australia is asking the government to provide every domestic university student with access to a concession card during their studies. Such cards can reduce the cost of services including public transport, medicines and utilities.
The group is also calling for international students to receive equal access to public transport concessions across Australia. Eligibility currently varies among states and territories, meaning international students can face different transport costs from domestic students.
“Students need to be able to afford to stay once they get there,” Universities Australia chief executive Luke Sheehy said.
The organization argues that broader concessions would help students manage rising living costs and support wider participation in higher education.
Universities Australia is also backing a recommendation from the Australian Universities Accord that 55% of Australians ages 25 to 34 should hold a bachelor’s degree or higher by 2050. The target would complement the government’s existing goal of having 80% of working-age Australians hold a tertiary qualification by 2050.
Indian Students Face Wider Cost Pressures
Indian students are also affected as Australian student living costs continue to put pressure on international students.India’s Ministry of External Affairs reported 138,579 Indian students in Australian universities and tertiary institutions as of Jan. 1, 2025. The figure rose to 196,108 when students in Australian schools were included.
Australia’s affordability is also being assessed alongside changes to student visa requirements. The MEA told India’s Rajya Sabha in April that Australia had raised India’s student visa evidence requirement from Evidence Level 2 to Evidence Level 3 effective Jan. 8, 2026, bringing stricter documentation requirements.
Universities Australia’s proposals would not immediately reduce international tuition fees or visa-related financial requirements. If adopted, however, international students could benefit from lower public transport costs.
The organization says affordability and Australian student living costs should remain central to efforts to expand access to higher education.
“Opening the door to university is only half the job,” Sheehy said.