Homestays, which used to be more prevalent, is now seen as an excellent opportunity for individuals with spare rooms to consider hosting international students in Australia, which has seen a substantial increase in arrivals on student visas in recent years, reaching over 587,000 arrivals in the year up to May 31.
Australia’s Education Minister Jason Clare’s high-level panel is exploring tax-free homestays for international students as a solution to the housing stress in the country.
The Council for International Education, co-convened by Labor MP Julian Hill and featuring input from cabinet ministers and industry leaders, viewed this as a potential solution to ease the pressure on the rental market, exacerbated by a post-COVID surge in student arrivals, the Sydney Morning Herald reported.
Hill noted that international students were not the cause of the housing problems in Australia but stated that exploring all options to expand and better utilize housing stock was necessary.
Homestays, which used to be more prevalent, could be an excellent opportunity for individuals with spare rooms to consider hosting international students, she said.
Citing data from the Home Affairs Department, a substantial increase in arrivals on student visas in recent years, reaching over 587,000 arrivals in the year up to May 31 has been recorded.
The influx contributed to a record net migration intake of 400,000 in the previous financial year.
To address concerns about international students potentially using work rights as a pathway to low-skilled work, Home Affairs Minister Clare O’Neil announced a crackdown on international student work rights, intending to ensure students primarily come to Australia to pursue their studies.
The housing supply crisis has further fueled the debate, with soaring rents and vacancy rates of 1.2 percent in the June quarter.
Core Logic’s Resolve Political Monitor poll found that 59 percent of voters believe the migrant intake is too high, adding to the political tensions surrounding the issue.
As the Council For International Education examines potential solutions, the idea of homestays has gained traction.
Phil Honeywood, the chief executive of the International Education Association of Australia, pointed out that accommodation has become a key priority at both state and federal levels. The council is exploring best practice examples, including enhancing homestay options, streamlining planning approvals, and fostering public-private partnerships.
Melinda Mackay, a host who currently accommodates two international students in her home, expressed that the students have become part of her family, emphasizing that it’s like their “Aussie home.”
The general manager of the Australian Homestay Network, Cris Rey, believes that homestays could be a viable avenue to alleviate the housing shortage and connect families during times of rising living costs.
However, Anouk Darling, the chief executive of student accommodation provider Scape, questioned whether homestays could offer the scale of accommodation required. Darling advocated for regulatory solutions that encourage more investment in purpose-built student accommodation, an idea echoed by Hill.
Meanwhile, SGS Economics partner Marcus Spiller suggested purpose-built student accommodation as a potential high-volume solution that could be replicated in the private market.
Despite these proposals, opposition immigration spokesman Dan Tehan expressed concerns about issuing visas without a proper plan for housing arrangements.
He pointed out the struggles faced by Australians who are struggling to find homes and are paying record-high rents.
During a speech on higher education reforms, Clare mentioned the interim report of an expert panel reviewing the sector, which raised the idea of a sovereign wealth fund to support student housing.
Clare also suggested that future international education might involve students completing part of their degrees overseas and part in Australia, potentially reducing the strain on local housing resources.
Currently, Australia has become a leading choice for studying, despite the significant expenses associated with it. The cost of living varies from AUD14,290 ($9,659.43) to AUD19,288 ($8,306.17) per year, making it one of the more expensive study options, as per Erudera’s report.
