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Victoria creates new foreign student loophole and pathway to permanent residency

Victorian Premier Jacinta Allan has promised to reserve 25% of the state’s regional work visas for international students, putting them on track to stay in Australia permanently.

Ms Allan made the commitment during her ongoing trip to India on Wednesday, two days after unveiling a $5 million fund to help Victorian universities and colleges set up shop overseas.

Both initiatives are targeted at Indians, and are state-based loopholes aimed at helping foreign students avoid the federal government’s new caps aimed at relieving pressure on the housing and rental markets.

Under the state government plan, one quarter of Victorian places for the Subclass 491 Skilled Regional Work Visa will go to 2024-25 graduates of locals universities and TAFEs, The Age reported.

Those who are accepted will have to live and work outside of Melbourne, but will be able to apply for permanent residency after just three years.

“International students are essential to Victoria’s vibrant, multicultural community,” Ms Allan said.

“We are ensuring that when students complete their studies, they have every opportunity to live and work in regional Victoria, where their skills are most needed.

“We’re focused on providing pathways for international graduates to build their futures in regional areas, addressing workforce shortages while offering graduates the chance to contribute to our growing regional cities.”

Earlier on Wednesday the Premier told a crowd at the International Education and Skills Summit in Delhi that she wanted to increase the number of Indian students studying in Victoria.

“It is a great pleasure to be here in Delhi over the past three days, and I come with three big priorities, education, education and education,” she said.

Ms Allan’s “Yes to International Students Fund” fund will pay universities and TAFEs to set up campuses overseas in order to get around the Albanese government’s caps.

“We say yes to international students because they boost our economy and our global reputation, they support our small businesses, and they keep our multicultural state connected with the world,” Ms Allan said.

“We say no to the federal government’s caps. Our new fund is going to help our unis and TAFEs find innovative ways to challenge them, and make our offering to international students even stronger.”

The fund will be for the provision of Australian courses to students abroad, either in overseas campuses or in courses that are provided in partnership with foreign universities.

RMIT University and India’s BITS Pilani already have a dual degree program, and will now expand their agreement, meaning Victoria may be able to increase its international student intake despite the caps.

As of June last year there were 272,250 Indian immigrants living in Victoria, 4.2% of the state’s population and 5.1% of Melbourne’s. Another 120,000 people in Victoria have Indian ancestry.

Pictured above: Jacinta Allan at a film screening in Delhi on Wednesday, left, and having a red dot painted on her face at the Laxmi Narayan Mandir temple, right (Indian Film Festival of Melbourne, 7 News)

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