Australia Doubles Visa Fee for International Students, Tightens Rules to Curb Record Migration

In a bid to rein in record migration, the Australian government has more than doubled the visa fee for international students, effective July 1. The move is part of a broader effort to address the country's tight housing market and restore integrity to its international education system.

The international student visa fee has risen to A1,068) from A185 and C110), respectively. Additionally, visitor visa holders and students with temporary graduate visas are now banned from applying onshore for a student visa.

According to Home Affairs Minister Clare O'Neil, "The changes coming into force today will help restore integrity to our international education system, and create a migration system which is fairer, smaller and better able to deliver for Australia." 

The move comes as official data released in March showed net immigration rose 60% to a record 548,800 people in the year to September 30, 2023. The government is also closing loopholes in visa rules that allowed foreign students to continuously extend their stay in Australia, after the number of students on a second or subsequent student visa spiked by over 30% to more than 150,000 in 2022-23.

Why it Matters : The international education sector is a significant contributor to Australia's economy, worth A$36.4 billion in the 2022-2023 financial year. However, the government's efforts to curb record migration may have unintended consequences on the sector. Universities Australia CEO Luke Sheehy warned that the government's continued policy pressure on the sector would put the country's position of strength at risk. "This is not good for our economy or our universities, both of which rely heavily on international student fees," Sheehy said. 

The latest move follows a raft of actions since late last year to tighten the student visa rules, including the tightening of English language requirements in March and the increase in savings required for international students to get a visa in May.

Key Takeaways:

• Australia has more than doubled the visa fee for international students to A$1,600, effective July 1.
• The move is part of a broader effort to address the country's tight housing market and restore integrity to its international education system.
• The increased fee makes applying for a student visa in Australia more expensive than in competing countries like the US and Canada.
• The government is also closing loopholes in visa rules that allowed foreign students to continuously extend their stay in Australia.
• The international education sector is a significant contributor to Australia's economy, worth A$36.4 billion in the 2022-2023 financial year.