International students planning to study in Australia may soon face higher visa fees if the Australian Labor Party wins the federal elections on May 3, 2025. On Monday, the party announced a proposal to increase the student visa fee to AUD 2,000 (approximately Rs 1.07 lakh), up from the current AUD 1,808. This hike is expected to raise around AUD 760 million over the next four years, according to a statement from Treasurer Jim Chalmers and Finance Minister Katy Gallagher.

“We believe this is a sensible approach that emphasizes the value of studying in Australia,” said Gallagher in the official statement.

In July last year, Australia significantly raised its international student visa fee, jumping from AUD 710 to AUD 1,600. Another hike took effect on April 1, 2025, pushing the fee to AUD 1,808. This latest proposed increase would place Australia even further ahead of other countries like the United States and Canada, where student visa fees remain at around $185 (Rs 15,781) and CAD 150 (roughly Rs 11,400), respectively.

Opposition Proposes Even Higher Visa Fees

In a stark contrast, the conservative opposition has proposed an even steeper increase in visa fees, suggesting a minimum of AUD 2,500, with fees reaching as high as AUD 5,000 for students applying to Australia’s prestigious Group of Eight universities.

International students are a significant source of income for Australian universities, but their increasing numbers have also contributed to rising pressure on the country’s housing market. New data shows nearly 200,000 international students arrived in Australia in February 2025, marking a 12.1% rise from the previous year and a 7.3% increase compared to February 2019, before the pandemic.

In response to this surge, the Labor government has promised to cap the number of international student commencements at 270,000 for 2025, while the opposition has proposed a slightly lower cap of 240,000.

Indian Students Drive the Surge

India has officially surpassed China to become the top source of international student visas for Australia. In February 2025, a total of 2,734 Indian students were granted visas, while 2,398 students received visas in January. By the end of February, the number of Indian students granted visas had crossed the 5,000 mark.

Courses in fields such as information technology, engineering, business, and healthcare continue to be popular among Indian students, thanks to strong post-study work opportunities and vibrant campus life. Still, the frequent hikes in visa fees have sparked worries among education specialists.

“These constant fee hikes could push international students to consider non-traditional study destinations beyond the US, UK, Canada, and Australia,” said Saurabh Arora, founder and CEO of University Living, in an interview with Business Standard.

Visa and Tuition Fee Increases Add Financial Burden

In February 2025, Australia raised the fees for the Temporary Graduate visa (subclass 485), which lets international students remain in the country after finishing their studies. The base application fee for this visa increased from AUD 1,945 to AUD 2,235. Additional applicants aged 18 or older now have to pay AUD 1,115, while those under 18 are required to pay AUD 560.

All streams of the Temporary Graduate visa, including those for post-higher education and vocational education, now carry the same rates. Meanwhile, the Second Post-Higher Education Work stream charges a lower main fee of AUD 880, while secondary applicants are required to pay either AUD 440 or AUD 225, based on their age.

The Department of Home Affairs explained that these fee increases were a result of inflation and the rising administrative costs of processing visas.

In addition to visa hikes, major Australian universities have also raised tuition fees. For instance, the University of Melbourne and the University of New South Wales have raised their tuition fees by as much as 7%. At the University of Melbourne, engineering programs now cost AUD 56,480 per year, while clinical medicine courses are priced at AUD 112,832 annually.

The universities attribute these increases to rising operational costs.

Higher Visa Fees Support Education Initiatives

The Albanese government has defended the higher visa fees, claiming that they will help fund important education initiatives, such as reducing graduate debt and supporting apprenticeships.

“International education is an incredibly valuable national asset, and it is crucial that we maintain its integrity and quality,” said Jason Clare, the Minister for Education.

While the ongoing fee hikes may raise concerns, they also reflect the government’s commitment to ensuring that international students continue to contribute to Australia’s economy while preserving the high standard of education the country is known for.

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