Some top Australian universities have been accused of selling permanent residency to foreign students.

A population expert claims some universities have opened 'shopfronts' in Melbourne offering cheap business and IT courses providing the minimum requirements for a skilled visa application.

Students who finished the degrees could apply for a 485 visa, allowing them to study and work in the country for another two years, and then a skilled independent visa for permanent residency.

Some top Australian universities have been accused of selling permanent residence to foreign students

Home Affairs Department figures show that Indians lead the student visa application numbers, with more than 14,000 Indians applying for the 485 visa last year alone - up from just over 10,000 in 2016-17, according to the Herald Sun.

Many students then apply for the skilled independent visa in order to earn permanent residency.

About 4,000 Indian nationals applied for the skilled independent visa in Australia in 2016-17.

'It has little to do with the excellence of the education that's offered here. It seems to be effectively selling access to jobs and permanent residence,' Australian Population Research Institute Director Dr Bob Birrell said told the Herald Sun.

Selling Australian university courses to overseas students is big business, with nearly half a million foreign students living in the country in 2018.

Universities Australia Chief Executive Catriona Jackson said it was misleading to suggest universities had control over the job market or permanent residency policy.

'The facts are the vast majority, around 85 per cent, of international students return home shortly after their studies to embark on global careers. And the graduates who stay here are exactly the highly capable people Australia needs to build a skilled and smart workforce,' she said.