Australia has more than doubled the visa fee for international students in its latest effort to manage record migration levels, which have been exacerbating the country’s housing market pressures. Starting July 1, the international student visa fee increased to A$1,600 ($1,068) from A$710.
In addition to the fee hike, the government has implemented new rules banning visitor visa holders and students with temporary graduate visas from applying onshore for a student visa. Home Affairs Minister Clare O’Neil stated that these changes aim to “restore integrity to our international education system, and create a migration system which is fairer, smaller and better able to deliver for Australia.”
Official data released in March revealed that net immigration surged by 60% to a record 548,800 people in the year leading up to September 30, 2023. The increased visa fees make studying in Australia significantly more expensive compared to the U.S. and Canada, where similar visa fees are about $185 and C$150 ($110), respectively.
The government is also addressing loopholes in visa rules that have allowed foreign students to extend their stay indefinitely. In 2022-23, the number of students on a second or subsequent student visa jumped by over 30% to more than 150,000. This is part of a series of measures introduced since late last year to tighten student visa regulations, as the lifting of COVID-19 restrictions in 2022 led to a surge in annual migration.
Further changes included stricter English language requirements in March and an increase in the required savings for international students to A$29,710 ($19,823) from A$24,505 in May.
Universities Australia CEO Luke Sheehy expressed concern over the government’s continued policy pressure on the sector, warning that it could jeopardize Australia’s strong position in international education. “This is not good for our economy or our universities, both of which rely heavily on international student fees,” Sheehy said.
International education is a major export industry for Australia, contributing A$36.4 billion to the economy in the 2022-2023 financial year.
