Australia has long been one of the world’s most sought-after destinations for international students. From its globally ranked universities to vibrant cities like Sydney and Melbourne, and the lifestyle appeal of its beaches and open spaces, the country attracts learners from across the globe. But a controversial policy decision may be jeopardizing that reputation.
In July 2025, the Australian government increased its student visa application fee to AUD $2,000. While officials framed the hike as necessary for managing migration, the move has sparked strong backlash from education bodies, students, and even policy analysts. Why? Because this new fee is not just high—it is now the most expensive student visa charge in the world.
For many international students—particularly those pursuing short-term programs such as English language courses (ELICOS) or non-award exchange studies—the cost is proving prohibitive. Critics warn that unless the government urgently revises its policy, Australia risks losing its edge in international education.
The Steep Climb: From $710 to $2,000 in Just Two Years
The story of the student visa fee hike is staggering in its scale.
- Before July 2023: The fee stood at AUD $710.
- July 2023: It rose sharply to $1,600, a 125% increase.
- July 2025: Another hike pushed it to $2,000.
In just two years, the cost of applying for a student visa nearly tripled. To put this in perspective:
- In Canada, a student visa costs about CAD $150 (≈ AUD $170).
- In the UK, it’s £490 (≈ AUD $950).
- In the US, an F-1 visa application fee is USD $185 (≈ AUD $280).
By comparison, Australia’s $2,000 fee stands out as dramatically higher—especially when it is non-refundable, meaning rejected applicants lose that money entirely.
Why Education Bodies Are Pushing Back
The outcry against this hike has been led by three major organizations:
- The International Education Association of Australia (IEAA)
- English Australia (EA)
- The Independent Tertiary Education Council Australia (ITECA)
In a joint letter to the Prime Minister, Treasurer, Finance Minister, and the Council for International Education, these groups urged the government to reconsider. Specifically, they are advocating for a 50% reduction in fees for short-term students, including:
- Independent ELICOS programs (English Language Intensive Courses for Overseas Students) under 52 weeks.
- Non-award programs such as exchange or study abroad placements, also under 52 weeks.
Their argument is clear:
“These students typically seek a short study experience rather than a multi-year qualification. Requiring them to pay the full $2,000 non-refundable fee for a course lasting months or even weeks is inequitable, especially when compared to longer, award-conferring programs.”
In simpler terms, why should someone enrolling for a 12-week English course pay the same visa fee as someone pursuing a three-year degree?
The Ripple Effects: Falling Enrolments and School Closures
The impact of the fee hike is already visible in the data.
- Overall international student commencements in the year to July 2025 dropped by 16% compared to 2024.
- The hardest hit were English language colleges (ELICOS), which saw enrolments plunge by nearly 40%.
This matters because English language providers are often the first entry point for students who later transition into university programs. When fewer students choose ELICOS, the pipeline into higher education shrinks.
Worse still, smaller independent colleges—many of which rely heavily on overseas enrolments—are facing financial strain. Some have already closed, reducing options for students and threatening jobs in the education sector.
Beyond economics, the cultural consequences are also significant. Fewer international students mean reduced classroom diversity, which has traditionally been one of Australia’s greatest educational strengths.
The Bigger Picture: Exchange and Cultural Impact
The concerns extend beyond just dollars and enrolments. In their letter, the education groups warned that:
- Reduced international interest will shrink study abroad and exchange programs, limiting Australian students’ opportunities to go overseas.
- With fewer students coming in, cultural exchange—the two-way sharing of perspectives and experiences that enriches classrooms—will diminish.
- Over time, this could harm Australia’s reputation as a welcoming and globally connected education hub.
Essentially, high fees don’t just discourage foreign students—they limit the opportunities of Australian students too.
What the Government Says
Assistant Minister for International Education Julian Hill has acknowledged the concerns but offered a nuanced perspective.
According to Hill, while fee hikes are a factor, they are not the sole reason for falling student numbers. He pointed instead to visa integrity measures introduced to curb misuse of the system.
“The correlation between a reduction in offshore student numbers was not actually with the first increase to the visa fee,” Hill said. “The more significant drop came when we tightened up visa integrity settings because of some of the behaviour we were seeing from certain markets.”
In other words, the government argues that stricter rules designed to ensure students are genuine, not the fee itself, are the main reason behind declining numbers.
Still, Hill confirmed that the government is reviewing options in response to feedback from stakeholders—raising hopes that some relief may be on the horizon.
Why This Matters: Australia’s Competitive Edge Is at Risk
Australia has long competed with the US, UK, and Canada for international students. Each year, international education contributes more than AUD $40 billion to the Australian economy, making it the country’s fourth-largest export sector.
But the competition is fierce. Students compare not just academic quality, but also costs, visa ease, work opportunities, and post-study pathways.
If Australia is seen as too expensive or too complicated, students will simply look elsewhere. Canada, for example, offers far cheaper visas and attractive post-graduation work permits. The UK, despite Brexit challenges, continues to draw students with its strong universities and two-year post-study work visa.
By pricing itself at the very top of the global visa ladder, Australia risks sending the wrong message: that it is unaffordable or unwelcoming.
What Could Be Done
To strike a balance, education bodies suggest a tiered visa fee system, where costs reflect the length and type of study:
- Lower fees for short-term courses (ELICOS, study abroad, exchange).
- Standard fees for undergraduate and postgraduate programs.
- Premium fees only for extended, award-conferring degrees if necessary.
Such a system would ensure fairness while keeping Australia competitive. It would also demonstrate that the government values the contributions of all international students, not just degree-seekers.
Students’ Perspective: The Real Struggle
For students and families, the fee hike feels like an added burden on top of already high costs. Consider:
- Average living expenses in Australia are estimated at AUD $24,505 per year (as per government guidelines).
- Tuition fees can range from $20,000 to $45,000 annually, depending on the program.
- On top of this, a $2,000 non-refundable visa fee is a bitter pill to swallow—especially if the application is denied.
For short-term learners, such as those enrolling in a six-month English course costing around $8,000, the visa fee now represents 25% of their tuition. That’s a massive deterrent.
Looking Ahead: Will Australia Adjust Course?
The coming months will be critical. If the government maintains its current stance, the decline in enrolments could deepen, putting more schools at risk and shrinking Australia’s share of the international education market.
On the other hand, a measured reduction—especially for short-term and non-award courses—could send a powerful signal that Australia remains accessible and committed to diversity.
With global competition intensifying, the stakes are high. Policymakers must weigh the short-term revenue gains from higher visa fees against the long-term risk of losing Australia’s place as a top international education hub.
Final Thoughts
Australia’s decision to raise its student visa fee to $2,000 has sparked an important debate about fairness, competitiveness, and the value of international education. While the government cites migration integrity concerns, the fact remains: students are sensitive to cost, and right now, Australia stands out for all the wrong reasons.
The call from education leaders is not about scrapping fees entirely—it’s about fairness and balance. By recognizing the unique needs of short-term students and introducing a more flexible system, Australia can safeguard both its economic interests and its global reputation.
At the heart of this issue lies a simple truth: international education is not just a revenue stream—it is a bridge of culture, opportunity, and mutual growth. Protecting its accessibility is in Australia’s best interest, and the time to act is now.
