The New Zealand government has announced a significant increase in visa fees across nearly all categories, set to take effect on 1 October 2024. Immigration Minister Erica Stanford explained that the changes aim to create a more sustainable immigration system by shifting the financial burden from New Zealand taxpayers to visa applicants. The increased fees are projected to reduce public funding needs for the system by more than NZ$563 million (US$338 million) over the next four years.
"Until now, our immigration system has been heavily subsidized by taxpayers. The changes we’re making are shifting the cost to those benefitting from the system, ensuring it is self-funding and more efficient," said the Minister. "The new charges reflect the costs associated with visa processing, assessing, and managing more high-risk applications, as well as increased compliance costs. However, the charges remain competitive compared to countries like Australia and the United Kingdom, so we are confident New Zealand will continue to be an attractive destination to live, work, study, and visit."
Student Visa Fees Will Double
On 9 August, stakeholders were notified via email that student visa fees will double from the current NZ$375 to NZ$750 as of 1 October.
This decision follows Australia's recent move to double its student visa application fees to AUD$1,600 (NZ$1,750). Despite the increase, New Zealand's student visa fees will still be significantly lower, at just over 40% of Australia's fee.
What Do Students Think?
A recent pulse survey provides insights into how visa fees influence prospective students' study plans. Conducted in June 2024, before the fee increase announcements in Australia and New Zealand, the survey still shows evidence of price sensitivity.
For students considering New Zealand, 50% said that the cost of the student visa would have little impact on their study plans. However, 22% indicated a "medium" impact, and 28% said it would have a "high" impact.
The survey also revealed varying levels of price sensitivity across different markets. Students from countries like the Philippines and Bangladesh showed greater concern about visa fees, while Chinese students were less affected. "These market distinctions are important as New Zealand seeks to attract future students who may consider switching from Australia,"
85% Approval Rate
At NZIEC 2024, Immigration New Zealand officials reported that since the country's borders reopened to international visitors in August 2022, they have received 124,000 study visa applications. To date, 119,000 have been processed, resulting in 101,000 visa approvals, translating to an 85% approval rate, with applications processed within an average of six weeks.
INZ officials also highlighted that agents are allowed to provide advice to prospective students without being a licensed immigration advisor, but only for student visas. In such cases, the agent must declare their involvement by completing a student visa declaration form (INZ1226).