As Australia gets ready for its federal election on May 3, 2025, the ruling Labor Party has said it will raise student visa fees again — a move causing concern among international students and education experts. If re-elected, Labor plans to increase the fee from AUD$1,600 to AUD$2,000. This change comes less than a year after the fee was doubled from AUD$710 in July 2024. The government expects the increase will bring in AUD$760 million over the next four years.
Treasurer Jim Chalmers and Finance Minister Katy Gallagher announced the plan at a press event. Gallagher said the higher fee reflects the value of studying in Australia and is part of a broader plan to cut government spending by AUD$1 billion.
However, this increase would make Australia’s student visa the most expensive in the world. In comparison, a U.S. student visa costs about AUD$299 and a Canadian visa about AUD$172. Education experts worry the higher fee could stop many international students from choosing Australia, which could hurt the country’s education sector.
The opposition party, led by Peter Dutton, has proposed even higher visa fees. If elected, they plan to raise fees to AUD$2,500 for most international students, and up to AUD$5,000 for those applying to Australia’s top universities (the Group of Eight). This has made student visa fees a key topic in the upcoming election, with both major parties viewing international students as a way to boost the economy.
Australia’s English language and short-course providers have already been hit hard by the previous fee increase. English Australia, a group representing English schools, said that applications for short English courses dropped by 50% after the fee went up to AUD$1,600. They are asking the government to reduce visa fees for students enrolling in courses shorter than one year to under AUD$800.
The International Education Association of Australia (IEAA) agrees. CEO Phil Honeywood said on LinkedIn that Labor has shown it is open to discussing lower fees for short-term students if it wins the election.
Despite the rising costs, interest in studying in Australia remains strong. In February 2025, about 200,000 international students arrived, 12.1% more than the year before, and even more than before COVID-19. Still, both Labor and the opposition are planning to limit how many new international students can start studying in 2025 — Labor wants a cap of 270,000, while the opposition wants a lower cap of 240,000.
Although the higher visa fees will raise money for the government, many are worried about the long-term impact. Australia may lose its image as an affordable and friendly place to study. As the election approaches, students and educators are hoping the next government will find a better balance between funding needs and keeping Australia attractive to international students.
