Student Visa Costs Likely to Rise, Says Australia’s Labor Party

Are you planning to study in Australia? Your Australian visa costs are about to rise significantly. The Australian Labor Party has announced plans to increase student visa application fees from AUD$1,600 to AUD$2,000 if re-elected, making it remain the world's most expensive student visa by a wide margin.

This proposed change comes after the Australian student visa fee already jumped 125% in July 2024, when it increased from AUD$710 to the current AUD$1,600. If implemented, this would represent a staggering 181.7% cumulative increase over just twelve months. During this same period, competing destinations like Canada and the United States have maintained much lower fees of CDN$150 and US$185 respectively.

The fee hike is expected to generate an additional AUD$760 million for the government over the next four years. However, this decision raises concerns about Australia's attractiveness as a study destination. Previously, a similar increase resulted in a 50% drop in applications for English language courses. This is particularly concerning given that Australia recently welcomed almost 200,000 international students in February 2025 alone, with over one million international students currently enrolled nationwide.
 

Labor announces student visa fee hike

Australia's governing Labor Party has officially announced plans to increase student visa fees by 25% if victorious in the upcoming federal election. This new measure targets the education sector, which has been a key driver of immigration to Australia in recent years.
 

Fee to rise from AUD$1,600 to AUD$2,000 if re-elected [Promised]

In a significant policy announcement, the Australian Labor Party confirmed they will raise the application fee for an Australian study visa from AUD$1,600 to AUD$2,000 if they win Saturday's federal election. This increase follows an earlier dramatic hike implemented just last year.

The planned increase will further cement Australia's position as the country with the most expensive student visas globally. This latest announcement marks the second substantial fee increase by the Labor government within a single year. In July 2024, the government more than doubled the fee from AUD$710 to the current AUD$1,600 - representing a 125% increase at that time.

Finance Minister Katy Gallagher defended the measure during a news conference, stating: "We think that's a sensible measure that really prizes, I think, the value of studying here in Australia". This perspective suggests the government views the high visa fees as reflecting the premium nature of Australian education rather than as a deterrent.
 

Treasurer and Finance Minister reveal AUD$760M revenue goal

According to a statement issued jointly by Treasurer Jim Chalmers and Finance Minister Katy Gallagher, this visa fee hike will generate approximately AUD$760 million in additional revenue over the next four years. This revenue projection forms part of Labor's broader policy costings released ahead of the weekend election.

The announcement mirrors similar proposals from the opposition Coalition, suggesting cross-party agreement on increasing international student fees as a revenue measure. Both major political parties appear aligned on making international education a target for increased government income.

Furthermore, this policy builds on the government's broader strategy of managing immigration through the education sector. The education industry has been identified as a major source of immigration to Australia, with the government seemingly intent on moderating these numbers through financial measures rather than direct caps on student numbers.

Additionally, the timing of the announcement - less than a week before the federal election - indicates the Labor Party believes the measure will be politically popular with voters concerned about immigration levels and housing pressures in major cities.
 

Stakeholders warn of sector-wide consequences

Education industry stakeholders have sounded urgent warnings about the severe impacts already being felt across Australia's international education sector following last year's visa fee increase, with predictions of worse outcomes should the proposed hike proceed.
 

ELICOS sector reports 50% drop in enrolments after last hike

The English Language Intensive Courses for Overseas Students (ELICOS) sector has been hit especially hard by previous fee increases. Following the 125% visa fee hike implemented in July 2024, ELICOS providers reported an immediate 50% decline in student visa applications for English language programs.

Ian Pratt, managing director of Lexis English, described the impact as "immediate and crushing". Consequently, total ELICOS enrolments dropped by 10.5% to 144,453, while commencements fell by 20.5% to 97,496 in 2024 - the lowest level since 2013 outside of pandemic years.

The disproportionate impact on English language programs stems from their typically shorter duration. With average enrollments lasting less than 20 weeks, the current AUD$1,600 fee already represents a substantial percentage of total course costs. Industry experts warn that even at current levels, Australia presents poor value compared to competing markets.

"The ELICOS sector has always been the 'canary in the coal mine'," explained Ian Aird, CEO of English Australia. "There's a much shorter consideration-sales-enrolment process, we're at the start of the journey for students on pathways, so we always feel these shocks first".
 

IEAA and ITECA criticize lack of strategic planning

Meanwhile, peak industry bodies have criticized the government's approach as lacking coherent strategy. The Independent Tertiary Education Council Australia (ITECA) stated that Australian businesses have endured "a series of ham-fisted approaches to reform" over the past three years, "each with different aims, and delivered without genuine consultation".

ITECA's position is that the visa fee increase appears "purely revenue driven" without consideration for broader consequences. The organization characterized the proposed AUD$2,000 visa charge as a "visa approval lottery" that will make "Australia a far less attractive destination for students".

Similarly, International Education Association of Australia (IEAA) CEO Phil Honeywood has called for targeted relief, specifically "a 50% discount for less than 12 months study programs including English language and learning abroad".

Industry representatives emphasize that the impacts extend beyond educational institutions. The previous increase has reportedly "cost 1,000s of Australian's their jobs" with businesses closing, and stakeholders warn that "another increase will see the job losses worsen".
 

How the fee hike could ripple through the economy

The ripple effects of Australian visa fee increases extend far beyond education institutions, threatening to undermine key sectors of the national economy. With international students contributing approximately 40% of all tourism earnings, the impacts will be widely felt across multiple industries.
 

Hospitality and tourism sectors brace for student decline

The hospitality and tourism industries are preparing for significant financial losses as international student numbers decline. Tourism operators have already reported diminishing bookings for tours, accommodations, and experiences typically purchased by visiting students and their families.

Beyond direct tourism spending, international students play a crucial role in Australia's visitor economy:

• They attract family visits throughout their study period
• Many work part-time in hospitality, filling critical staff shortages
• Their cultural connections bring diverse tourism opportunities to Australian businesses

Indeed, one industry report warned that "students will just take their money and their tourism dollars to another country" as visa costs become prohibitive. This shift threatens to exacerbate existing challenges in a tourism sector still recovering from pandemic-era restrictions.

Job losses and business closures feared by education providers

The economic fallout has already begun, with the previous visa fee increase directly linked to widespread job losses. According to English Australia, "the last visa fee increase has already cost 1,000s of Australians their jobs", with impacts concentrated initially in language schools but now spreading to adjacent industries.

Moreover, numerous businesses have already closed their doors, with industry representatives warning that "another increase will see the job losses worsen". The closure pattern is expected to accelerate if the new AUD$2,000 fee is implemented, as fewer students choose Australia for their education.

Essentially, Australia risks undermining what English Australia describes as a "golden goose" that generates billions in export earnings across multiple sectors. Business leaders predict "plummeting export earnings, significant job losses, and brain drain" as educators seek opportunities offshore while domestic tourism and hospitality sectors struggle with reduced international student customers.
 

What alternatives and exemptions are being discussed?

With escalating australian visa costs threatening multiple sectors, industry groups are advocating for targeted exemptions to protect vulnerable educational programs from collapse.
 

Calls for reduced fees for short-term and English programs

Educational organizations have proposed specific alternatives to mitigate damage across the sector. Among the prominent proposals:

• English Australia urges an urgent reduction in student visa fees for courses lasting less than one year, recommending a fee below AUD$800
• The International Education Association of Australia (IEAA) has formally called for a 50% discount on visa fees for study programs shorter than 12 months, including English language courses and learning abroad programs
• Industry representatives advocate strongly for complete exemptions for English Language Intensive Courses for Overseas Students (ELICOS) programs, arguing these short-term courses cannot absorb the disproportionate visa costs

These alternatives aim to address the reality that current australian student visa fees are substantially higher than competitor nations. Unlike Australia's AUD$1,600 fee (soon potentially AUD$2,000), similar visas cost approximately US$185 in the United States and just CDN$150 (AUD$108) in Canada.

Labor open to post-election discussions on targeted relief

Despite proposing the fee increase, Labor has signaled willingness to consider modifications. The IEAA reports receiving "a commitment from Labor that they will be open to discussion about visa fee reductions" following the election. This potential flexibility specifically addresses IEAA's proposal regarding short-term study programs.

Currently, limited exemptions already exist. Pacific Island and Timor-Leste citizens are eligible for reduced visa costs since March 22, 2025, with partial refunds available for those who applied between July 2024 and March 2025. Additionally, students affected by COVID-19 may qualify for application fee waivers under specific circumstances.

Nevertheless, these discussions occur against a backdrop of competing proposals. The conservative opposition has pledged even steeper increases - setting minimum fees at AUD$2,500, with australia's prestigious Group of Eight universities commanding AUD$5,000 per application, potentially making Labor's proposal appear moderate by comparison.
 

Australia faces a delicate balance between revenue and reputation

Australia's proposed student visa fee increases undoubtedly place the country at a critical crossroads. Throughout this analysis, we've seen how the planned hike from AUD$1,600 to AUD$2,000 represents a staggering 181.7% cumulative increase over just twelve months when combined with last year's increase. Consequently, this positions Australia even further ahead as the world's most expensive student destination by visa cost alone.

The evidence overwhelmingly suggests serious consequences already unfolding across multiple sectors. ELICOS providers, specifically, have experienced a crushing 50% drop in applications following the previous increase. Meanwhile, tourism, hospitality, and related industries brace for significant economic fallout as international student numbers potentially decline.

Though Labor defends the increase as reflecting Australia's premium education value, many industry stakeholders remain unconvinced. Rather, they view this approach as primarily revenue-driven without strategic consideration of long-term impacts. The promised AUD$760 million in additional government revenue might certainly address short-term budget concerns; however, it potentially undermines a significantly larger education export sector.

Calls for targeted exemptions, particularly for short-term study programs, represent a reasonable compromise that acknowledges market realities. Labor's openness to post-election discussions provides a glimmer of hope for affected sectors. Nevertheless, the fundamental question remains whether Australia can maintain its educational attractiveness while charging visa fees dramatically higher than competitor nations like Canada and the United States.

Australia must carefully weigh immediate financial gains against potential long-term damage to its international education reputation. After all, once students choose alternative destinations, winning them back becomes exponentially more difficult than retaining them would have been initially.