According to the Allianz Partners Australia 2024 State of Student Healthcare Report, over 61% of international students found everyday life in Australia significantly more expensive than expected. Alarmingly, more than a quarter (28.1%) have considered withdrawing from their studies due to financial stress. These figures highlight a pressing need for robust financial education before students arrive.
Cost expectations vs. reality
Key underestimated costs include accommodation (59.5%), healthcare (56.8%), dining out (56.2%), returning home (55.3%), and groceries (45.8%). With rent prices soaring in cities like Sydney, Melbourne and Brisbane, many students struggle with the reality of Australia’s competitive housing market. While Overseas Student Health Cover (OSHC) is mandatory, additional out-of-pocket medical expenses are often overlooked.
Only 18.2% of students report feeling financially secure. A substantial 40.2% fall into financially stressed or hardship categories, often relying on credit, family support, or welfare organisations to get by. These statistics reveal the fragility of student financial wellbeing and the importance of adequate preparation.
Employment isn’t the only solution
While part-time work is common among international students, it’s not a reliable safety net. Study period working restrictions (48 hours per fortnight) mean employment income alone cannot sustain most students. Yet, 56.6% of students underestimated the difficulty of finding work, and 40.6% are still actively job-seeking.
Barriers include visa restrictions (41.5%), competition with local candidates (40.1%), and limited professional networks (36%). These challenges can push students toward unsafe work conditions – over 40% are willing to accept cash-in-hand jobs, and nearly a third would work under compromised legal or safety standards.
This underscores the critical need for pre-arrival financial planning, reducing the risk of students relying on unpredictable or exploitative employment just to get by.
Despite financial struggles, students still thrive
Even with financial pressures, the majority of international students report high satisfaction. Around 75.5% are happy with life in Australia, and 72.2% feel confident managing their academic workload – even while adjusting to English as a second language. Students are also building meaningful support networks, with 76.4% reporting strong onshore connections.
Encouragingly, 68.4% of students plan to remain in Australia long-term. This speaks volumes about the quality of the student experience and the potential benefits of investing further in student support systems.
Where can we improve?
Ensuring students are financially prepared before arriving is a shared responsibility. Government, education providers, insurers, and student organisations must collaborate to offer practical, standardised resources like budgeting tools, webinars, and up-to-date cost calculators.
Employment support services also need strengthening – but within realistic expectations. Job-matching programs, professional networking, and visa education can help students navigate work options without compromising their wellbeing.
Additionally, many students remain unaware of financial aid and emergency support services already in place. Greater visibility of food banks, emergency grants, and welfare resources – facilitated through stronger partnerships between universities and support organisations – is crucial.
A call to action
Australia’s international education sector has laid a strong foundation of academic support and community integration. Now, it must also prioritise financial preparedness. By equipping students with realistic expectations and budgeting tools before they arrive, we can help them avoid unnecessary hardship and fully embrace the opportunities Australia offers.
With the right knowledge and support, international students can not only survive but thrive – academically, socially, and as future contributors to Australian society.
About the author
Naomi Nichol is the manager of product design and innovation for health at Allianz Partners. With a strong background in user experience, market research, and cross-functional leadership, she leads the development of innovative health products and services for international students. Naomi also oversees the annual State of Student Healthcare Report, providing critical insights into the evolving needs and wellbeing of international students in Australia. Her work is driven by a commitment to improving student outcomes through data-informed design and collaborative sector engagement.
