Australia hikes visa fee by 125%: Indian govt takes it up with officials

The visa fee hike could financially strain international students, including those from India, seeking education opportunities in Australia

The Indian government has raised concerns over Australia’s decision to increase its international student visa fees from AUD 710 (approximately Rs 38,930) to AUD 1,600 (approximately Rs 87,731), effective July 1, 2024. Minister of State for External Affairs Kirti Vardhan Singh confirmed this in a written reply to the Rajya Sabha on Thursday.

 

In his reply, Singh acknowledged the fee increase, saying, “The fee for international student visas was increased by the Government of Australia... The matter has been taken up with relevant authorities along with other issues related to students.”

 

The minister noted that this hike could financially strain international students, including those from India, seeking education opportunities in Australia. He also reiterated the importance of the education partnership between India and Australia, describing it as a key element of their economic and people-to-people ties.

 

 

“This ministry continues to raise and follow up with the Government of Australia on matters related to students from India studying in Australia,” Singh added.

 

India-Australia partnership in education

 

India is a major contributor to Australia’s international student population. Official data from January to September 2023 showed that India was the second-largest source of international students, with 1,22,391 Indian students enrolled in Australian institutions.

 

The India-Australia Economic Cooperation and Trade Agreement (ECTA), implemented in December 2022, further facilitates opportunities for Indian students and professionals. Key provisions of ECTA include:

 

1. Post-study work rights:

Bachelor’s degree holders: Up to 2 years

Master’s degree holders: Up to 3 years

Doctoral graduates: Up to 4 years

STEM and ICT graduates with first-class honours: Eligible for an additional year, extending their stay to 3 years

 

2. Work and holiday visas:

Annual quota of 1,000 Work and Holiday visas for Indian citizens aged 18–30

 

3. Mutual recognition of qualifications:

A framework to recognise professional qualifications, licensing, and registration, easing mobility across sectors (excluding regulated professions like law and medicine)

 

4. Youth mobility and cultural exchange programmes:

Opportunities for young Indians to gain work experience and participate in working holidays

 

Student visa numbers decline sharply

 

Despite the strong education partnership, recent figures show a sharp decline in student visas granted to Indian students. Between October 2023 and August 2024, Australia issued around 298,000 student visas globally, marking a 38% drop compared to the previous period, according to official data.

 

Indian students experienced a 56% decline in student visa approvals. Other affected groups include:

Filipino students: 67% decline

Colombian students: 62% decline

Vietnamese students: 28% decline

 

The decline in student visas has been attributed to several policy changes introduced by Australia:

 

1. Increased visa fees:

The student visa application cost more than doubled from AUD 710 to AUD 1,600 in July 2024, aimed at funding education integrity measures and deterring fraudulent applications.

 

2. Stricter English language requirements:

Minimum IELTS scores were raised from 5.5 to 6.0 in early 2024.

 

3. Higher financial requirements:

From May 2024, students must demonstrate proof of living expenses totalling AUD 29,710, up from AUD 24,505.

 

4. Reduced post-study work rights:

Temporary Graduate visas now allow shorter stays, with bachelor’s and master’s graduates limited to two years.

 

5. Introduction of the ‘Genuine Student’ requirement:

On March 23, 2024, Australia replaced the Genuine Temporary Entrant (GTE) rule with the Genuine Student (GS) requirement, assessing applicants’ study history, plans, and intent.

 

6. Restrictions on onshore visa applications:

From July 2024, holders of certain visas, such as Visitor (subclass 600) or Temporary Graduate (subclass 485), were barred from applying for student visas while in Australia.

 

Australia’s vocational education and training (VET) sector saw the steepest decline, with a 57% drop in student visa numbers. English Language Intensive Courses for Overseas Students (ELICOS) experienced a 50% decline, while higher education visas fell by 25%. These reductions have impacted students seeking various types of education in Australia.

 

Students reluctant to choose Australia

 

A survey by International Development Programme (IDP) Education found that financial challenges and stricter visa rules are deterring many students from choosing Australia.

 

Key findings include:

< 49% of students cited unaffordable tuition fees as a reason for withdrawing from international study plans

< 35% pointed to high living costs

< 35% were discouraged by expensive visa fees

< 29% found securing a student visa too challenging

 

“Students want stability. Unpredictable visa policies add a lot of pressure, and it’s becoming a key factor in decision-making,” said an IDP counsellor.