Australia Visa Fee Hike: How it will impact Indian Students?

To control the migration strategy for international students, the Australian Government has increased the student visa application fee starting from July 1, 2024.

The increase in the non-refundable fee, from 710 AUD to 1,600 AUD, came into effect on 1 July.
The fees have been increased by 225% from what it was initially.
Prospective students who applied for student visas before 1 July 2024, will not be affected by the change.

In addition to the main applicant fee, the Australian government will now charge 1,445 AUD for each accompanying applicant aged 18 and above. Family members of the applicant, under 18 years of age, will be charged 390 AUD.

Table of Content

Reason Behind the Fee Hike
How will the Fee Hike Impact the Indian Students?
Other Significant Changes in the Australian Visa
FAQS

Reason Behind the Fee Hike

The Albanese government defends the fee increase as a necessary step to generate additional revenue for educational initiatives. These initiatives include reducing graduate debt, providing financial support for apprentices, and implementing a comprehensive migration strategy.

End visa hopping - The government said it was also closing loopholes in visa rules that allowed foreign students to continuously extend their stay in Australia, after the number of students on a second or subsequent student visa spiked by over 30% to more than 150,000 in 2022–23.
Increasing migration rate- It said around 440,000 hopeful international students applied for a student visa from July 2023 to May 2024. As per the Australian Home Affairs Minister Claire O’Neil, the increase in net overseas migration is mainly because of the upsurge in international students.
Support for employers - The funds will provide financial support for apprentices and their employers in the Vocational Education and Training sector. Additionally, the fee increase will support the ongoing implementation of the Migration Strategy.
Improvement in Courses - The fee increases would also fund important reforms such as payments for compulsory work experience and free preparation courses for university.

How will the Fee Hike Impact the Indian Students?

As India constitutes the second-largest group of international students in Australia, the fee hike for Australian student visas is likely to affect Indian students more.

According to the University Living Indian Student Mobility Report 2023-24, an Indian student spends an average of 51,000 AUD for their living expenses. The increase in visa fees, adding to the living expenses doubles the financial burden on Indian students.
Current students on temporary visas lose the ability to switch to student visas within the country. Temporary graduate visa holders will now face challenges in securing employer-sponsored visas.
The rise in fees makes applying for a student visa for Australia far more expensive than in competing countries like the United States and Canada, where they cost about $185 and $110 respectively.
The Australian government has also increased the financial savings required for Indian students to secure a visa. The amount has been increased by 17% from 24,505 AUD to 29,710 AUD.

Few criticized the fee hike for the financial burden it places on Indian students, many of whom already face high deposit costs.

Other Significant Changes in the Australian Visa

Some of the other recent changes implicated in the Australian Visa are mentioned below-

Prolonged period for visa holders to find new jobs

When a visa holder quits their job with their sponsoring company, they will have a maximum of 180 days at a time or 365 days altogether throughout the visa grant to find a new sponsor, apply for a new visa, or make arrangements to leave Australia.

Visa holder's flexibility in hiring

Visa holders are allowed to work for other companies during this time, even in positions that aren't on their most recent authorized sponsorship nominations.

Employment conditions for visa holders

Requirements to follow while switching jobs -

Ceasing work with a current sponsor- Unless excused, visa holders must quit their sponsoring employee before joining the new employers.
Compliant with Nominated occupation- As long as they hold their current sponsor, visa holders must continue in the field they have chosen.

In addition to the visa fee hike, the Australian government has increased the temporary skilled migration income threshold from 70,000 AUD to 73,150 AUD. This also came into effect on 1 July 2024.
Visitor visa (SC 600) holders will not be able to apply for Student (SC 500) visas onshore.
Temporary Graduate (SC 485) visa holders will not be able to apply for Student (SC 500) visas onshore.

While these changes may ensure that only serious students apply to Australia, it is crucial to consider the broader impact of such changes. International students are a vital part of Australia's economy and educational landscape. Increasing the fee will only compel Indian and other international students to choose other countries abroad like the UK, USA, and Canada for their higher studies and create a huge impact on the net migration rates and educational sector in Australia.

FAQS

Ques. How much is the new visa fee for Australia?

Ans. The Australian Government has increased the Australian visa fees for international students from 710 AUD to 1600 AUD, an increase of 225% on July 1, 2024.

Ques. Is the student visa fee waived in Australia?

AnsAns. The fee waiver is only valid for the following situations: deferral or Leave of absence due to travel restrictions. Other reasons could be due to deferral of the Education Provider's inability to deliver the course.

Ques.How much bank balance is required for an Australia student visa in 2024?

Ans. Australia Student Visa bank balance required for an Australian student visa application is 29,710 AUD for living expenses, one year of tuition fees, return airfare to and from Australia to the student's home country, and overseas student health cover.

Ques.What are the new rules for Student visas in Australia in 2024?

Ans. From 1 July 2024, holders of certain visas, including Visitor and Temporary Graduate visas, can no longer apply for Student visas while in Australia.

Ques. What are the minimum fees to study in Australia?

Ans. On average, In Australia, a bachelor's degree may cost between AUD 9,000 and AUD 50,000 per year in tuition. and the master's degree may cost between AUD 9,000 and AUD 54,000.