Australia Increased Student Visa Fee Up To 225%

The Australian federal government significantly raised the fee for international student visa applications more than doubled. Effective immediately, the non-refundable fee has increased from A$710 to A$1,600.

This unexpected announcement is part of a larger strategy to manage the exceptionally high migration numbers, particularly among international students.

Clare O’Neil’s Thoughts on Student Visa Fees Increase

On Monday, Home Affairs Minister Clare O’Neil explained that the increased fee is intended to make the migration system “fairer and smaller.” Education Minister Jason Clare mentioned that the additional funds will support “important reforms” like payments for mandatory work experience and free preparatory courses for university.

Increase in Immigration in 2023

In March, official data revealed that net immigration surged by 60%, setting an all-time high of 548,800 people in the year ending September 30, 2023.

The government announced closing loopholes in visa regulations that enabled foreign students to extend their stay in Australia repeatedly. This decision comes after the number of students on a second or subsequent student visa increased by over 30%, surpassing 150,000 in the 2022–23 period.

This latest measure is part of a series of actions taken since late last year to tighten student visa regulations. The removal of COVID-19 restrictions in 2022 has driven annual migration to unprecedented levels.

How Student Visa Language Requirements Have Tightened

In March, the English language requirements were tightened, and in May, the required savings for international students to obtain a visa were raised to A$29,710 ($19,823) from A$24,505. This was the second increase in approximately seven months.

Student Visa Fees in Other Countries

The fee increase positions Australia’s student visa application costs significantly higher than those of several competing countries in the international education market. For instance, student visa fees are around US$185 (A$277) in the United States and approximately C$150 (A$164) in Canada. In the United Kingdom, the fee is £490 (A$932), and in New Zealand, it is NZD$375 (A$343).

University Reactions to the Fee Increase

The increase in the student visa application fee has been met with strong disapproval from the university sector. The Group of Eight, which includes Australia’s premier research institutions like The University of Sydney and The University of Melbourne, has criticized the hike as a “blatant attempt to raise revenue” and a “severe blow” to the A$48 billion education sector.

Since the A$1,600 fee is non-refundable, it might discourage genuine applicants from coming to Australia. This could particularly affect students from developing countries, potentially reducing cultural diversity on university campuses.

The fee increase is part of a broader set of recent policy changes, which include stricter English language requirements, higher savings thresholds for student visas, and plans to limit the total number of international students.

These developments have led to concerns from organizations like Universities Australia, which worry that the sector could face significant financial losses due to its heavy dependence on international student fees.

Why did Australia Increase the Student Visa Fee?

The government has made it clear that they believe international students have returned to Australia much faster than expected since the reopening of borders.

Following the pandemic, the former Morrison government introduced several measures to encourage international students to return. These included extending visa durations and expanding work rights.

However, these policies have now been revised. As shown in the chart below, visa grant rates have reached record lows, meaning the government is rejecting more international student applications than ever before.

This trend is particularly noticeable in the vocational education and training sector. A recent government review highlighted this sector as having the highest number of so-called “dodgy” providers—often referred to as “ghost colleges” that enroll students without genuine intentions to study, instead allowing them to come to Australia for work.

The Pros and Cons of Australia’s Latest Student Visa Policy Changes

The government’s intention to manage migration levels makes some sense, especially given the current challenges in the housing market.

However, with visa applications being denied and an overall cap on student numbers being proposed, the increase in application fees seems like a rather blunt instrument.

This move follows previous criticism of the Albanese government’s changes to student visa policies, including the introduction of “risk ratings” for educational institutions. Critics argue that these migration control measures are being used to reduce the number of international students, which goes against their intended purpose of attracting qualified students.

Additionally, this decision contributes to the ongoing uncertainty faced by universities.

In the end, the most significant element affecting international student enrollment will be the caps that were announced right before the May budget. It remains uncertain how these caps will be determined, and the proposed legislation is currently under review by a Senate inquiry.

Alternative Measures for Managing Migration

There are other potential strategies the government could implement to address issues without negatively impacting the entire international education sector.

For instance, instead of increasing application fees, the government could explore alternatives like restricting student visa extensions in areas experiencing severe housing shortages. Such measures would help Australia balance the effective management of its migration program with the continued success of the substantial economic benefits gained from international students.