Australia hikes student visa fee to AUD 2,000, sparking cost fears for thousands of Indian aspirants

Australia has raised its student visa application fee to AUD 2,000 (Rs 1.1 lakh approx) effective July 1, 2025, a sharp hike that now makes it the most expensive among major English-speaking study destinations. The move, announced ahead of the upcoming federal election, is expected to generate AUD 760 million in revenue over four years, according to Australia’s Treasurer Jim Chalmers and Finance Minister Katy Gallagher, as cited by Reuters.

Confirming the change, a spokesperson from the Department of Home Affairs told PIE News, “In line with the government’s election commitment, from 1 July 2025, the Visa Application Charge (VAC) for primary student visa applicants will be increased from $1,600 to $2,000.”

The government maintains the increase is part of its efforts to manage Australia’s booming international education sector sustainably.

“The international education sector is important to Australia, and the Australian government is committed to managing the international education sector at a sustainable level while ensuring its equity, quality and integrity,” officials stated.

Visa fees for primary applicants from Pacific Island nations and Timor-Leste, who benefit from reduced charges, will remain unchanged.

Policy tightens on international students

The fee hike comes amid broader policy tightening. Labour has capped international student commencements at 2,70,000 for 2025, while the opposition has proposed a lower ceiling of 2,40,000. Meanwhile, Australia welcomed nearly 200,000 international students in February 2025 alone, a 12.1% increase from the previous year.

Yet the rising costs are triggering deep concern among educators, particularly in the English Language Intensive Courses for Overseas Students (ELICOS) sector. Many prospective students for short-term English courses appear unwilling to pay the higher fees. Industry insiders report falling enrolment numbers; following the previous fee increase in 2024, English language course admissions dropped by 50%.

Several ELICOS providers have since shut their doors. Perth International College of English (PICE) recently closed, citing visa-related financial strain. Longstanding institutions such as IH Sydney and The Language Academy have also ceased operations, ending decades of service to international students.

Adding to the pressures, the government has introduced stricter English language requirements and granted authorities expanded powers to suspend institutions that repeatedly violate international education guidelines.

While Canberra insists the measures aim to safeguard quality and ensure only genuine students enter the system, stakeholders fear Australia’s escalating costs and tighter rules could undermine its attractiveness as a study destination in the global education market.