Changes coming into effect on Saturday will put overseas students applying for an Australian General Skilled Migration (GSM) visa to a more stringent test. They will require greater understanding of the English language and a professional year of work experience.

This is probably the reason why the number of Indian students taking English Language courses (ELICOS) has grown from 344 at March 2006 to over 1,400 in the same period in 2007.

In the Year-to-date April 2007, as many as 40,010 Indian students have enrolled in Australian educational institutions, a growth of 55.1 percent from the previous year, according to the Australian Education International (AEI).

The growing influx of full fee paying Indian students is reaping rich dividends for Australia. Today, India is the second largest source of overseas students and a significant contributor to Australia's international education market, which is worth AUS $9.8 billion to the national economy.

Immigration Minister Kevin Andrews said, "Students wishing to apply for a GSM visa will now be required to have a stronger understanding of the English language and undertake relevant work experience."

The points test will be adjusted to benefit applicants with advanced Australian tertiary qualifications, Australian skilled work experience and strong English language skills.

Minister for Education, Science and Training, Julie Bishop, said: "The changes give greater certainty that international students will have the language proficiency to gain the full benefit of their studies. This also assists in maintaining the strong reputation of our education sector as a provider of high quality education to international students."

The changes also include major structural reforms, in which the 11 skilled migration visa categories will be collapsed into four and 15 skilled migration visa subclasses collapsed into nine.

A temporary visa will be created to enable overseas students already studying in Australia to remain in Australia while they gain skilled work experience, improve their English language or undertake a professional year. A new temporary visa will also be created for recent graduates from recognised overseas institutions with key skills in demand in Australia.

Andrews said, "The changes would lead to better labour market outcomes for all General Skilled Migration applicants and help deliver the skills Australian employers need."

For applicants with skills in professional, technical or managerial occupations, the International English Language Testing System (IELTS) score of 5 (vocational) will be raised to 6 (competent) and applicants with recognised trade skills applying for GSM visa will be required to meet the current threshold of IELTS 5.

A new visa category has been introduced for overseas students, who are unable to immediately qualify for GSM on completing their studies. They will get a temporary 18 month visa with no work or study restrictions, but the main applicant must be under 45, have met the two year study requirement in the last 6 months, have a suitable skills assessment in their nominated occupation, meet the English language threshold.

A new offshore recognised graduate (temporary) visa is aimed at addressing 'niche' shortages in the labour market. It is a 18 months visa with no work or study restrictions, but the main applicant must be 30 or under, have completed a degree in a specified discipline from a specified educational institution in the last 12 months and meet the English language threshold.

Both the temporary visas are not points tested and the applicant can apply for a permanent or provisional GSM or an employer sponsored visa at any time. From Sep 1, applications from prospective migrants will be accepted at skills assessment centres set up in several countries, including India.

In recent years, skilled labour shortages, especially in the resources and construction sectors, have been a significant constraint on the Australian economy. Skilled migrants have filled about a third of the 460,000 jobs created over the past two years.

The Australian migration programme is points-tested with a strong focus on attracting skilled people and people who agree to live in regional areas. People applying for skilled migration qualify for 15 extra points in the skilled migration points test if their nominated occupation is on the Migration Occupations in Demand List (MODL), which includes managers and administrators, professionals in the fields of building and engineering, accountants, medical and nursing, hospitality, textile, clothing and hairdressing.