The Albanese government is increasing the international student visa fees from $710 to $1,600 (US$1,067) starting July 1, 2024.
Australia now has the highest visa fees globally, more than double those of comparable nations such as New Zealand ($344), the United States ($283), and Canada ($168).
This policy change acknowledges the growing importance of education in the country and reflects the government’s commitment to reducing the number of arrivals to Australia.
The visa increase will also fund measures recommended by the Universities Accord and Vocational Education and Training sector. These include fairer HECS, Prac Payment, FEE-free Uni Ready courses, and financial support.
Special arrangements for the measures will be established for Pacific neighbours and Timor-Leste to recognise Australia’s close relationship with these countries.
Some initiatives in the previously announced Migration Strategy will also come into effect.
Among these are the increase of the Temporary Skilled Migration Income Threshold (TSMIT) from $70,000 to $73,150, shortening the duration of Temporary Graduate Visas, ending ‘visa hopping,’ and enhancing mobility for temporary skilled migrants.
“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,” Home Affairs Minister Clare O'Neil said.
Minister for Skills and Training Brendan O’Connor said the government would continue to “weed out” providers that look to take advantage of international students.
“Most providers do the right thing and are in the business of education and training for the right reasons. They will benefit from the removal of non-genuine actors, who undermine integrity and trust in VET,” he said.
This move was met with backlash from The Group of Eight (Go8), which represents Australia’s top research universities, including the University of Melbourne and the University of Sydney.
The Group of Eight claims that the visa increase is a “blatant revenue raising move masked as deterring low quality students” and “sends entirely the wrong message to market.”
Considering that the $1,600 foreign student visa fee is non-refundable, it may decrease the number of students who genuinely want to study in Australia, especially those from developing countries.
“It is death by a thousand cuts to our most successful services export sector,” she added.
The visa increase builds on other relevant policy changes that were implemented recently, including plans to cap the number of foreign students in Australia overall.
This especially sparked concern from Go8 universities, particularly regarding the financial losses the country will face. This is because spending by international students contributed to a 0.8 percent increase in GDP in 2023.
“If Go8 universities are capped to a pre-COVID 2019 level of international students, then conservatively benchmarking against 2023 figures, this would have a potential immediate impact of $5.35 billion and over 22,500 jobs in the economy,” Ms. Thomson said.
The Group of Eight believes these government policies will have long-term, drastic consequences, not just for the Australian economy but also for the country’s skilled workforce and its international reputation.
