In a significant policy shift, the Australian government has announced that the fee for international student visas will rise to AUD 2,000 from July 1, 2025. This follows a sharp increase in 2024 when the fee more than doubled from AUD 710 to AUD 1,600.
The move, part of the Albanese government's broader immigration and budget strategy, aims to manage record-high net migration and generate an estimated AUD 760 million over four years. Officials argue the new fee will also help fund domestic education initiatives, improve visa system integrity, and reduce pressure on housing and infrastructure.
Australia now holds the title of the most expensive student visa destination globally, surpassing fees charged by the US, UK, and Canada.
Sector Concerns and Student Backlash
The decision has sparked criticism from universities and education providers, who warn it may deter cost-sensitive applicants and hurt Australia’s competitiveness in the global education market. Industry stakeholders fear the impact on enrollment, particularly from developing countries, where students already face high living and tuition costs.
International students have also expressed frustration, with some accusing the government of treating them as "cash cows." The non-refundable nature of the visa fee, coupled with uncertain visa outcomes, has further fueled concerns about affordability and fairness.
Migration Caps and Broader Strategy
The visa fee hike comes alongside proposed student intake caps—270,000 under Labor and 240,000 under the Opposition—as Australia seeks to rein in migration numbers amid a housing crisis.
While the government defends the fee as necessary for fiscal responsibility and reform funding, education leaders are calling for balanced policy that maintains Australia’s reputation as a top-tier study destination.
Bottom Line: As international students weigh the rising costs, Australia may face growing competition from countries offering more affordable and welcoming study options.