On 1 July, Australia increased student visa application fees from $710 to $1,600. Experts say the move could deter students from choosing the country over others like the US or Canada, and fail to generate the revenue that the government expects.
Australia's student visa application costs have risen significantly, now surpassing those of countries like the US ($185) and Canada ($110).
This increase is part of stricter immigration policies, including a work limit of 48 hours per fortnight, an end to 'visa hopping', shorter durations for Temporary Graduate Visas, and reduced age eligibility.
The number of international student visas granted for 2023-24 (until 31 May) is significantly lower compared to the previous financial year. The number of lodged visas decreased from 514,580 to 441,613 year on year. Similarly, the number of granted visas dropped from 499,690 to 289,509 during the same period.
As of 31 May, 39,322 student visas were granted to Indian nationals during 2023-24, compared to 85,844 in 2022-23. Neha Singh, a certified migration agent, noted an increase in visa refusals amid widespread uncertainty caused by recent policy changes. She mentioned that only half of the student visa applications her office submitted were approved.
Many in the migration and education sectors, as well as student organizations, have voiced opposition to the price hike. Gurnam Singh, founder of the Australian Indian Sports, Educational and Cultural Society, criticized the decision as "un-Australian and unfair," expressing concerns that it would deter students from choosing Australia.
Nishidhar Borra, head of the Association of Australian Education Representatives of India (AAERI), also condemned the move, arguing that it portrays international students as 'cash cows.' He suggested a better approach would be dividing the fee into segments, with a portion for pre-visa assessment and the balance after approval.
Bhavya Sharma, an international student and president of the Indian Graduate Student Society at the University of Melbourne, described the move as "completely unfair," citing the additional financial pressure on students already struggling with the high cost of living.
Immigration expert Abul Rizvi warned that the fee increase could lead the best students, who have more options, to choose other countries over Australia. He questioned the rationale behind a non-refundable application fee given the uncertain outcomes.
Gurnam Singh also argued that the revenue generation idea might fail as the increased fees and declining approval rates discourage applications. Rizvi added that the growth rate of Indian students in Australia is likely to slow down in 2024 and 2025 compared to 2023, although Indians will remain the largest source nation for permanent migrants.
A Department of Home Affairs spokesperson described the Visa Application Charge (VAC) increase as a "one-off increase" applicable to all visa applications lodged on or after 1 July 2024. The hike is intended to fund important initiatives in education and migration.
Minister for Education Jason Clare emphasized the importance of maintaining the integrity and quality of Australia's international education system. Minister for Citizenship and Multicultural Affairs Andrew Giles highlighted reforms aimed at protecting vulnerable workers and cracking down on employers who violate regulations.