Australia Raises Student Visa Fee to AUD$2,000, Sparking Concern in Education Sector

Australia has increased its student visa application fee to AUD $2,000 starting July 1, 2025, making it the highest among major study destinations worldwide. This latest hike comes just a year after a significant jump in 2024, when fees more than doubled from AUD $710 to AUD $1,600. The government says the change is part of its broader plan to manage migration and maintain the integrity of the student visa program.

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The Australian Department of Home Affairs explained that the visa fee rise is aimed at deterring non-genuine applicants and covering higher administrative and compliance costs. Officials estimate the new fees will generate an extra AUD $760 million over the next four years.

However, education industry leaders and stakeholders are concerned. Many believe the high costs could hurt Australia’s appeal as a study destination and lead to a drop in enrolments, especially from developing countries. “This could make Australia less competitive compared to countries like Canada, the UK, or the US,” one education consultant said. For comparison, the UK’s student visa fee is around AUD$700, while Canada’s is roughly AUD $150.

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Impact on ELICOS and Short-Term Programs

The English Language Intensive Courses for Overseas Students (ELICOS) sector is expected to be hit hardest. After the 2024 fee increase, many ELICOS providers saw enrolments fall by up to 50%. These courses are usually short-term, and visa costs now seem too high relative to the length and cost of the program.

With an additional AUD$400 added in 2025, stakeholders worry the situation will worsen. Students considering short English courses may now look elsewhere for more affordable options.

A Financial Risk for Universities

Australia’s international education industry contributes over AUD$40 billion annually and supports thousands of jobs. Universities, especially regional and mid-tier institutions, depend heavily on tuition from overseas students. The visa fee rise could reduce applications from price-sensitive students, impacting university budgets and diversity in classrooms.

Some fear that this move could push international students toward more affordable countries or toward online and transnational programs that don’t require a visa at all.

Fee Exemptions and Government Assurances

Despite the general increase, students from Pacific Island nations and Timor-Leste will continue to benefit from reduced visa fees, as per existing regional agreements. The government has assured that its goal is not to discourage international students but to make the system more sustainable and fair.

Why Is Australia Increasing Fees?

According to the Department of Home Affairs, the hike:

Helps deter non-genuine applicants

Improves visa system integrity

Offsets administrative costs

Aligns with broader migration reforms

Historically, student visa fees were AUD$575 in 2019, then rose to AUD$620 in 2020, and AUD$710 in 2023. The dramatic jumps in 2024 and 2025 reflect a stricter immigration stance and efforts to reduce housing and infrastructure pressure.

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Australia’s decision to raise the student visa fee to AUD$2,000 may improve the quality of visa applicants and reduce system abuse. However, it could also discourage genuine students and weaken the country’s position in the global education market. The next year will show whether the policy strikes the right balance between control and competitiveness.