Australia Set to Raise Student Visa Fees Again

As Australia heads toward a federal election on 3 May 2025, big changes are looming for international students planning to study Down Under. The governing Labor Party, currently leading slightly in the polls, has announced plans to increase student visa application fees yet again — a move set to have major implications for students, education providers, and the broader international education sector.

Speaking at a joint news conference on 28 April, Treasurer Jim Chalmers and Finance Minister Katy Gallagher outlined their plan to raise the Australian student visa fee from AUD$1,600 to AUD$2,000. This hike is expected to generate an additional AUD$760 million in revenue over the next four years. The increase is part of broader efforts to find AUD$1 billion in savings ahead of the election.

Labor’s move comes just as the opposition Coalition Party, led by Peter Dutton, proposed even steeper increases: AUD$5,000 for applicants to prestigious Group of Eight universities, and AUD$2,500 for other international students.

If Labor's plan proceeds, Australia will continue to hold the unfortunate title of the most expensive country for student visa fees. To put this into perspective:

• A Canadian study permit application costs about CAD$150 (AUD$172).

• A U.S. F-1 student visa application is USD$185 (AUD$299).

By comparison, even the current Australian fee of AUD$1,600 — introduced in July 2024, representing a 125% increase from the previous AUD$710 — is significantly higher than other major study destinations.

Finance Minister Gallagher defended the latest proposal, stating, “We think that's a sensible measure that really prizes the value of studying here in Australia.”

However, international education stakeholders have raised serious concerns. Higher costs could discourage talented students from choosing Australia over more affordable destinations like Canada, the UK, or the U.S.

One key advocacy group, English Australia, has sounded the alarm in its election briefing. They highlight that the 2024 fee increase has been particularly devastating for the ELICOS (English Language Intensive Courses for Overseas Students) sector. Since the fee hike:

• Applications for ELICOS-only enrolments have fallen by around 50%.

• Short-term study programs (often less than 20 weeks) have been hardest hit.

English Australia has urgently called for:

• A review of student visa application fees.

• A reduction of the visa fee to less than AUD$800 for students enrolling in courses shorter than one year.

They argue that making Australia more accessible for short-term students is essential to regrowing the sector and maintaining Australia's reputation as a top study destination.

What Does This Mean for Future Students?

If you're planning to study in Australia, it’s crucial to factor in higher visa costs into your budget. At Grewal Immigration Consultants, we strongly recommend:

• Applying early to avoid potential fee increases.

• Seeking expert advice to understand how different visa policies could affect your study plans.

• Exploring options for financial aid, scholarships, and more affordable study pathways.

Our team is here to guide you every step of the way — from application to arrival — ensuring you have the latest, most accurate information to make the best decisions for your future.

Contact us today to start planning your Australian education journey!