There are concerns that Australia's international education market could be decimated by Federal Government changes to the skilled migration program.

Immigration Minister Chris Evans today released the new list of occupations required for migrants seeking to come to Australia.

Until now, a quick course in something such as hairdressing or cooking could lead to a foreign student gaining permanent residency in Australia.

But the Government is set to halve the number of occupations and professions listed in its skilled migration program.

Education providers say international students are now switching to other countries for their education and the Australian education market will suffer as a result.

But Mr Evans says the new system will better cater to the country's economic needs.

He says the education system has driven the migration intake for far too long.

"We've had the education system driving our migration outcomes rather than having our skills needs driving them," he said.

"This is about making sure that the people who come in on the migration program have the skills we need, have the English levels we need and can get a job in that skilled area."

As well as the economic imperative there have been other factors behind the Government's changes.

A series of attacks on Indians and the collapse of a number of educational institutions have hurt Australia's reputation as an international education destination.

The Government has been under intense pressure to fix the situation.

Already, 20,000 prospective migrants have had their applications for permanent residency rejected.

And the changes are expected to affect between 30,000 to 40,000 international students presently studying in Australia.

The chief executive officer of the Australian Council for Private Education and Training, Andrew Smith, says such students should be allowed to stay under the previous permanent residency arrangements.

"We've got students and your businesses in Australia who've invested very heavily on the basis of the Government's previous policies," he said.

"And we believe that those students in particular should be able to continue their studies and seek the outcome that was promised to them under previous policies.

"We understand the need for change in the immigration policies. We support those changes, but we think that we have a responsibility to honour the commitments we made to existing students."

Mr Smith says other Western countries such as Canada are taking advantage of the situation and poaching students.

"I can tell you that one of the key things that is hurting Australia's reputation overseas at the moment and causing students to look to other countries for their education is the uncertainty and continual change in immigration policy, where we're not meeting the promises we made," he said.

"That means that we have are seen as having an unstable policy environment and it means that investment is being made elsewhere.

"Our third largest export industry is under increasing pressure as a result of this uncertainty and the continual change in policy settings."

Support for existing students is also coming from within Australia's Indian community. But an Indian community leader based in Sydney, Dr Yadu Singh, says he supports the overall changes to the system.

"Indians from India can come to Australia but they have to fit in with the requirements which Australia has," he said.

"We can't just be guiding our immigration programs based on some sort of specific trades like cookery or hairdressing.

"I came as a doctor so we want people from all over the world - Australia being the multi-cultural country - but we want the right people for the right trade, the right qualification."

Education agents in India say demand for Australian courses has fallen since news of the changes to the permanent residency regulations were announced.