On Monday, Australia significantly impacted international students by raising visa application fees by 125%, a move aimed at enhancing the “integrity” of its fourth-largest export and addressing overall migration concerns.
The fee increase, which raises the cost from A$710 to A$1,600 ($1,067) per application starting July 1, is intended to “create a migration system which is fairer, smaller, and better able to deliver for Australia,” according to Home Affairs Minister Clare O’Neil. The fee hike is part of a broader set of migration-related measures introduced on the same day.
Australia’s international education sector is one of the largest globally, valued at around A$48 billion annually, or 7% of total exports. International graduates contribute significantly to Australia’s skilled migrant intake, with one-third of permanent skilled migrants coming from this sector, as noted by the Grattan Institute.
The additional revenue from the increased visa fees will fund various initiatives, including support for Australian students’ education and financial aid for local apprentices and employers, according to the government.
Vicki Thomson, CEO of the Group of Eight, representing Australia’s leading universities, criticized the government’s decision, labeling it a “critical mistake” for using international students to address short-term migration spikes and housing pressures. She warned that this move could severely damage Australia’s successful services export sector.
The increase in international student numbers, now exceeding 650,000, highlights the strain on housing since borders reopened post-pandemic. This surge has coincided with a severe housing shortage, prompting the government to restrict migration. Migration is expected to be a key issue in Australia’s 2025 elections, with opposition leader Peter Dutton also pledging to reduce migrant numbers.
Australia now hosts more than three times the number of international students per capita compared to Canada or the UK, reflecting the sector’s significant growth since the pandemic.
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