From July 1, 2025, the Australian government will increase the student visa application fee to AUD 2,000, following a steep rise from AUD 710 to AUD 1,600 just last year.
A Home Affairs spokesperson told The PIE that the move aligns with the government’s election commitment and aims to manage the international education sector sustainably while safeguarding its equity, quality, and integrity.
Existing reduced fees for Pacific Island and Timor-Leste applicants will remain unchanged. The government says the hike will strengthen visa program integrity by ensuring visas are granted to genuine students who contribute to Australia’s sustainable economic growth.
However, the increase has drawn strong criticism, particularly from the ELICOS sector, where providers have reported a 50% drop in English language enrolments following the 2024 fee hike. Many students pursuing shorter courses are reluctant to pay the higher costs, prompting concerns about the sector’s competitiveness.
The fee rise forms part of the Albanese government’s broader immigration and budget strategy to manage record-high net migration and raise an estimated AUD 760 million over four years. Officials claim the additional revenue will support domestic education programs, improve visa processing, and ease pressure on housing and infrastructure.
With this latest increase, Australia now charges the highest student visa fees globally, surpassing those of the US, UK, and Canada.
Analysis by The Australian Financial Review reveals that the government’s expected revenue assumes around 475,000 student visa applications annually—close to the near-record 498,500 applications received in 2023-24. This figure contrasts sharply with the government’s goal of reducing annual international student enrolments to 270,000. While the record number of applications was 514,600 in 2022-23 as students returned post-pandemic, Labor’s reforms to reduce student numbers have since taken effect, with visa applications dropping 32% in the first eight months of the current financial year compared to the previous year.
Critics argue that revenue forecasts rely on outdated application volumes. One college owner, speaking anonymously to the AFR, said:
“The maths doesn’t add up. Even if Labor assumes the same level of visa applications for 2023-24, even when the evidence proves they are declining, it would require a 42 per cent rejection rate to get to 270,000 visa approvals. If they are budgeting on that basis our immigration system is approaching scam status.”
Education Minister Jason Clare maintains that higher fees will improve visa integrity and attract higher-quality students, but many in the sector disagree.
The visa fee hike coincides with proposed student intake caps—270,000 under Labor and 240,000 under the Opposition—as Australia attempts to manage migration amid a housing crisis. While the government defends the measure as fiscally responsible and necessary for reform funding, education leaders urge a balanced policy to maintain Australia’s global education appeal and affordability for international students.
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