Australia’s ruling party to raise international student visa fee to A$2,000

Australia’s ruling Labour Party has announced plans to raise international student visa fees to A$2,000 if returned to office, as part of a broader strategy to manage immigration and generate revenue from the country’s booming education sector, Reuters reported on Monday.

The proposed increase, up from the current A$1,600, is expected to generate A$760 million over four years, according to a statement released Monday by Treasurer Jim Chalmers and Finance Minister Katy Gallagher.

The announcement forms part of Labor’s fiscal plan ahead of Saturday’s federal election.

‘We think that is a sensible measure that really prizes the value of studying here in Australia’, Gallagher told reporters.

The move followed a significant fee hike in July last year, when the government more than doubled student visa costs from A$710 to A$1,600.

The conservative opposition has gone further, pledging to raise the fee to A$2,500 for most applicants and up to A$5,000 for those applying to top-tier Group of Eight universities.

Australia’s international education sector has seen rapid growth, with nearly 200,000 international students arriving in February 2025 alone—a 12.1 per cent increase from the previous year and 7.3 per cent above pre-pandemic levels. However, the influx has contributed to rising net migration and growing pressure on housing.

To address these concerns, Labour has proposed capping new international student commencements at 270,000 in 2025, while the opposition supports a lower cap of 240,000.

In 2024, over one million international students were enrolled in Australian institutions, with 572,000 beginning new studies.

Student visa fees in Australia already rank among the highest globally. By comparison, fees are significantly lower in the United States and Canada, where they cost around $185 and C$150 ($108 USD), respectively.

The Australian government has also tightened English language requirements and introduced new powers to suspend education providers found repeatedly violating recruitment regulations.