Australia doubles student visa fees: The impact on Indian students explained

Studying in Australia has become costlier for foreign students. The Western country has doubled the student visa fees for international students from A$710 (Rs 39,407) to A$1,600 (Rs 88,803).

The Australian government has also banned several categories of temporary visa holders from applying for a student visa from within the country.

Clare O’Neil, Minister for Home Affairs and Cyber Security of Australia, said on Monday (July 1), “The changes will help restore integrity to our international education system, and create a migration system which is fairer, smaller and better able to deliver for Australia.”

What are the changes? How will they impact Indian students? Let’s understand.

Australia’s visa reforms

Australia’s hike in student visa fees has made it highest compared to countries like Canada, New Zealand, the United States and the United Kingdom.

Those who want to apply for a student visa will have to do so from outside Australia.

People on Temporary Graduate, Visitor, and Maritime Crew visas cannot apply for a student visa while they are in Australia.

The Australian government suggests that “temporary graduates should depart Australia at the end of their visa or consider job opportunities that might lead to employer-sponsored visas or permanent residency if they want to remain in Australia.”

Those with a “genuine intention to pursue studies” in Australia are still eligible to apply for a student visa from outside the country.

Canberra has also enhanced the minimum savings requirement for student visas from A$24,505 (Rs 1.4 crore) to A$29,710 (Rs 1.7 crore).

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The Australian government has also reduced the age limit of the students opting for temporary graduate visas (TGV) from 50 to 35 years from July 1.

Aspirants who applied for student visas before July 1, 2024, will not be affected by the change.

Working Holiday Maker and Work and Holiday visa holders are also exempted.

Australia has introduced these reforms to curb migration amid record-breaking house prices. As per the Australian Bureau of Statistics data, overseas migration reached 548,800 for the year ending September 2023.

ALSO READ: Australia regulates concurrent study: Should Indian students worry?

How Indians will be affected

Australia has been among the top destinations preferred by Indian students to study abroad, besides the UK, the US and Canada.

Indians make up the second-largest community among foreign students in Australia.

More than a lakh Indian students went to Australia in 2022. According to the Indian High Commission in Canberra, an estimated 1,20,277 Indian students were enrolled to study in Australia as of August 2023.

The Australian government’s move has been condemned by student representatives who argue that this will dissuade prospective students from coming to the country, driving them to competitors.

Speaking to ABC News, Yeganeh Soltanpour, the national president of the Council of International Students Australia, pointed out that the student fee hike, along with increased deposit costs, will further strain foreign students.

“The possibility of spending all that money only to face rejection is quite disheartening for many students. It has caused many in the student community to explore other options and competitive countries,” she added.

After the fee hike, Australian student visas have become more expensive than those of the US and Canada, which are priced under $200 (Rs 16,696).

Experts say the fee increase could impact the number of Indians going to Australia for higher studies.

Speaking to Business Standard, Aritra Ghosal, founder and director of OneStep Global said, “International education plays a vital role in the Australian economy. The hike could significantly impact the number of Indian students choosing Australia as their study destination. It may even prompt many to consider alternatives, given that the US charges $185 (Rs 15,433), Canada around $110 (Rs 9,178), and the UK approximately $620 (Rs 51,732).”

Others said this would hurt the Indian students and their families financially.

“We got the information this weekend. There was no prior announcement about it. Interested students will be informed about it. No doubt it will add to the financial burden of students and their parents,” Gaurav Chaudhary, a Ludhiana-based immigration consultant from EduPlanet, told Indian Express.

“While we acknowledge Australia’s efforts toward sustainable management of educational expansion and quality, this policy change may pose financial challenges for many potential students. It underscores the need for nuanced policies that balance affordability with Australia’s commitment to maintaining educational excellence and diversity,” Manisha Zaveri, Joint Managing Director, Career Mosaic, was quoted as saying by Business Standard.

Universities Australia CEO Luke Sheehy said the step is neither good for the Australian economy, nor its varieties. “This is not good for our economy or our universities, both of which rely heavily on international student fees,” Sheehy told Reuters.

With inputs from agencies