The transitional arrangements mean overseas students studying in Australia on or before 31 March 2003 can have their application to remain in Australia considered under the current one year study requirement.

To take advantage of the transitional arrangements, they have until 1 April 2004 to lodge an application to remain in Australia under the General Skilled Migration category.

The Minister recently announced that in future the period of Australian study required to take advantage of the work experience exemption for General Skilled Migration would be increased from 1 year to 2 years.

The changes in the General Skilled Migration category, scheduled to commence on 1 July 2003, would provide a sharper focus on the quality of Australia"s skilled migrant intake.

"Overseas students contribute significant economic benefit to Australia and the Government is committed to retaining their skills after they complete their Australian studies," Mr Ruddock said.

"This must, however, always be balanced with the need to ensure that Australia"s skill base is enhanced.

"One of the main aims of increasing the study requirement from 1 to 2 years is to ensure that overseas students have the right level of skills that will enable them to obtain skilled employment in Australia.

"These students, where eligible, will also be able to take advantage of the increased points available from 1 July 2003.

"Fine-tuning the Australian full time study requirement for General Skilled Migration where applicants do not have work experience ensures that Australia continues to attract high quality skilled migrants."

Mr Ruddock thanked the Australian Vice-Chancellors" Committee for their input into the development of transitional arrangements.