Australia Increased Student Visa Fees

Australia’s International students’ Visa fees have increased by up to 126% as of July 1, 2024. This has been a widespread concern among Indian students. The decision is aimed at a stricter immigration policy and may have consequences for students and educational Institutions.

Visa Fee Hike Sparks Outcry

Starting from July 1, 2024, Australia has increased the student fees for the Student Visa (subclass 500) from AUD 71 to AUD 1600 - A surprising 126% hike. This increased surge is part of a broader immigration introduced by the Australian government, managing record-level migration and housing shortages as well. The increase also applies to all new student visa applicants, regardless of their nationality.

For many thousands of Indian students aspiring to study in Australia, this change is more than just a financial trouble, but works as a dealbreaker too. Many families stretching their budgets to fund overseas education are now facing difficulties due to the higher upfront costs without even considering the tuition or living expenses.

Australia was already an expensive destination. This fee hike makes it even more difficult for middle-class Indian families, says Arjun Mehta, an education consultant based in New Delhi.

Why the Hike?

The Australian Home Affairs Department quotes the need to reduce immigration pressures, especially in the context of a housing affordability crisis. As we understand, the levels of migration have hit highs in 2023, the government has signaled tougher aspects on the entry including stricter pathways for International students.

In a statement made by the department, the new visa fee is a reflection of the “cost of delivering high-quality visa services” helping fund migration system upgrades. However, critics argue that the move affects the students from developing countries.

The Graduate Visa (subclass 485) fee was also increased to AUD 1895, further complicating the pathway to post-study employment and permanent residency.

Indian Students Hit Hard

Indians make up the second-largest group of international students in Australia after the Chinese. In 2023, over 120,000 Indian students were enrolled in Australian institutions. For many Indian students, Australia is not just a place to study, it is one of their life choices for global education, career development, and immigration.

However, with this latest visa application fee hike, the recent hike of other policies - higher requirements for English, more stringent financial requirements, and reductions in post-study work rights - they are draining the attraction of Australia as a preferred destination.

Australia is slowly closing its doors on international students for the sake of migration control, says Manisha Bhandari, a postgraduate student at the University of Melbourne. We are paying more but are getting fewer opportunities.

Not only is the cost of study a greater burden for many students. However, now many students are evaluating their return on investment in education. With fewer pathways to permanent residency and greater restrictions on post-study work, the equation of cost versus longer-term value is now more uncertain.

Diplomatic Concerns and Government Response

The issue has caught the attention of the Indian government. On April 25, 2025, India’s Minister of State for External Affairs, Kirti Vardhan Singh, confirmed that the matter had been raised with Australian counterparts during bilateral discussions. The government emphasised the importance of student welfare and sought clarity on the implications of the new rules.

The External Affairs Ministry noted that while immigration is Australia’s sovereign right, the abrupt changes could negatively impact student confidence and bilateral educational partnerships.

Meanwhile, Indian embassies in Australia have been fielding concerns from anxious students and parents. Education agents have reported a noticeable slowdown in inquiries about Australian institutions, especially among undergraduates.

Turning to Other Countries

The dramatic rise in visa fees for Australia is causing Indian students to look elsewhere. Germany, Canada, France, South Korea, and Japan are seeing an influx of applications from Indian students as they have become more appealing options.

• Germany offers what is effectively tuition-free education at public universities, so it is an inexpensive option.
• France and Canada also continue to offer many scholarships and have permissive and productive post-study work arrangements.
• South Korea and Japan have, historically, seen low rates of Indian student application, but now they are having an increase in popularity as the education available is affordable, and both countries have aggressive internationalisation strategies.

A report from the Association of Indian Universities (AIU) from December 2024 stated that approximately 38% of students who initially contemplated applying to Australia are now looking elsewhere due to uncertainty around cost and the results of a visa application.

We have seen a 60% increase in applications to South Korean and Japanese universities since January 2024, said Ajay Sharma, CEO, GlobalEd, one of the largest overseas education consultancy groups.

A Strained Higher Education Sector

Australia’s higher education sector is reliant on international students for revenue, and the new visa policy might have unintended negative consequences. International students are contributing over AUD 40 billion to the Australian economy each year, supporting not only universities but also local businesses and services.

The smaller universities and regional campuses (that rely on Indian and Southeast Asian student cohorts) will be the hardest hit if there is a downturn in enrollments.

This is a short-sighted move. The government is undermining a critical economic engine when universities are already under stress, explains Dr Catherine Zhang, an international education expert with the University of Sydney.

Finally, we need to consider our reputation as a welcoming place for international talent in the future - students look at a range of factors, not just education, in choosing where to study.

Long-Term Policy Shifts

The increase in fees is part of Australia's broader Migration Strategy 2024–2025, whose stated aim is to cut net overseas migration by 50% in the next few years. The other reforms include:

• Tighter integrity checks on education providers.
• Increased monitoring of visa compliance.
• Focus on "genuine students" with clearly identified education and career pathways.

Although the government insists that these interventions are necessary to prevent improper use of the system, education advocates caution against overcorrection, which harms legitimate students.

I think we are trying to discourage abuse, and limiting the options of literally thousands of genuine students is not the answer. Phil Honeywood, CEO of the International Education Association of Australia.

What Lies Ahead?

With Australia becoming more expensive and unpredictable, Indian students need to rethink their decisions. Education professionals suggest they consider factors beyond fees and visa tax invoices and think harder about their career outcomes, residency options, and overall adaptability.

For the Australian government, moving forward will require careful balancing. If policymakers do not proactively support students while giving the go-ahead for reform to immigration policy, Australia will soon cease to be the preferred study destination.

In the meantime, Indian students are already rewriting their plans. That's the nature of these resourceful and resilient individuals, which will add to the claim in multiple markets that are more conducive in terms of opportunity and cost.

Final Thoughts

Australia's decision to double the student visa fees is a strong signal to prospective international students: immigration policy is tightening, and international students may be the first victims of that tightening. While this announcement is likely grounded in domestic pressures, the broader implications may affect the global patterns of student mobility.

For Indian students, gaining an international degree is more complicated than it has been, let alone the costs that will now mean the dream of studying in Australia may be double the cost, monetarily and emotionally.