Australian student visa fees may soon cross Rs 1 lakh for Indian applicants

International students planning to head to Australia could soon be paying more for their visas if the ruling Labor Party wins the federal election on May 3, 2025.

 

On Monday, Labor announced it would raise the student visa fee to AUD 2,000 (about Rs 1.07 lakh), up from the current AUD 1,808. The move is expected to generate AUD 760 million over the next four years, according to a statement released by Treasurer Jim Chalmers and Finance Minister Katy Gallagher on Labor’s policy costings.

 

“We think that's a sensible measure that really prizes, I think, the value of studying here in Australia,” Gallagher said in a statement.

 

 

Australia more than doubled the international student visa fee last July, lifting it from AUD 710 to AUD 1,600. Then on April 1, 2025, the fee was again hiked to AUD 1,808. The proposed fresh hike would further set Australia apart from countries like the United States and Canada, where student visa fees remain at about $185 (Rs 15,781) and CAD 150 (roughly Rs 11,400), respectively.

 

Opposition promises even higher fees

 

The conservative opposition has promised a steeper increase, proposing a minimum student visa fee of AUD 2,500, and AUD 5,000 for those applying to Australia’s top universities, known as the Group of Eight.

 

International students are a key source of income for Australian universities, but they have also contributed to record levels of migration, adding pressure to the country’s housing market.

 

New figures show that nearly 200,000 international students arrived in Australia in February 2025, a rise of 12.1% from the previous year and 7.3% higher than February 2019, before the pandemic.

 

In response, Labour has pledged to cap international student commencements at 270,000 in 2025. The opposition favours a lower cap of 240,000.

 

Indian students lead the surge

 

Government data shows India has now overtaken China as the largest source of student visas to Australia.

 

In February 2025 alone:

 

2,734 Indian students received visas

2,398 Indian students were granted visas in January

Cumulative visa approvals crossed 5,000 by the end of February

 

Courses in information technology, engineering, business and healthcare remain popular choices for Indian students, supported by strong post-study work opportunities and a lively campus environment.

 

However, repeated cost increases have raised concerns among education experts.

 

“These changes will prompt international students to explore unconventional study destinations beyond the traditional four—US, UK, Canada and Australia,” said Saurabh Arora, founder and CEO of University Living, speaking to Business Standard.

 

Australia posted the sharpest fall at 50.8 per cent in 2024.

 

Graduate visa fees raised earlier this year

 

In February 2025, the government had already increased fees for the Temporary Graduate visa (subclass 485), which is widely used by international students who stay on after completing their courses.

 

< The base application fee rose from AUD 1,945 to AUD 2,235

< Additional applicants aged 18 and above now pay AUD 1,115

< Applicants under 18 pay AUD 560

 

All streams of the Temporary Graduate visa, including the Post-Higher Education Work stream and the Post-Vocational Education Work stream, are now charged at the same rate. Only the Second Post-Higher Education Work stream has a lower primary fee of AUD 880, with secondary applicants paying AUD 440 or AUD 225, depending on their age.

 

The Department of Home Affairs said the changes reflected inflation and the administrative costs of processing visas.

 

Universities lift tuition fees as well

 

Visa fee increases come alongside tuition hikes across several major universities.

 

< The University of Melbourne and the University of New South Wales have raised tuition fees by up to 7%

< Engineering at the University of Melbourne now costs AUD 56,480 per year

< Clinical medicine courses at the same university are priced at AUD 112,832 per year

 

Universities cited rising operational costs for the decision to raise fees.

 

The Albanese government said higher visa fees would help fund education initiatives, such as lowering graduate debt and supporting apprentices.

 

“International education is an incredibly important national asset and we need to ensure its integrity and quality,” said Minister for Education Jason Clare.