Australia has significantly increased the visa fees for international students, with the new rates effective from today, as announced by the Department of Home Affairs. This measure aims to address the housing system’s strain due to the rising number of immigrants.

New Visa Fee Structure

Starting July 1, international students will now pay AUD 1,600 (USD 1,068) for their visas, a significant increase from the previous AUD 710. Additionally, temporary graduate and visitor visa holders currently in Australia will not be able to switch to a student visa within the country.

Government’s Rationale

Home Affairs Minister Clare O’Neil stated, “These changes will help restore the integrity of our international education system and foster a fairer, smaller, and more efficient immigration system for Australia.”

Context and Impact

Post-COVID-19, Australia’s immigration rate surged by 60%, reaching 548,800 as of September 30, 2023. The government has implemented various restrictions on student visas to manage this influx, including the recent fee increase and stricter financial requirements.

Comparative Costs

The new visa fees in Australia are now much higher compared to the United States and Canada, where the fees are around USD 185 and CAD 150, respectively.

Addressing Loopholes and Requirements

The government is also closing loopholes that allowed students to extend their stay through visa regulation gaps. Additionally, from May, the minimum bank balance requirement for a student visa has increased to AUD 29,710 from AUD 24,505.

Economic Significance

International education remains a vital export sector for Australia, generating AUD 36.4 billion in the 2022-2023 fiscal year.