Based on my research, I think the argument over the shortage of internship positions is just all a big suspense drama. Every year nearly every student (international or local Australian citizen) has gotten an internship, and even this year which had a record number of students as compared to internship spots available, nearly everyone got it. the government made some positions available, from my understanding.
I think by logic sense, an international student who studied at an australian medical school, should not be kept out of an internship solely because of his citizenship. yes priority should be given to Australian citizens first, but the argument being thrown around is that international students may not be able to find an internship spot in the future solely because of their citizenship which is slightly too dramatized. I think everyone agrees that an Australian medical graduate is an Australian medical gradaute regardless of citizenship, and why new internship spots were created this year. It's was not a problem, is currently not a problem, and I dont foresee a problem in the future with this