Australia’s Labor party proposes visa fee hike

On Monday, Australia’s Treasurer Jim Chalmers and finance minister Katy Gallagher announced that Labor would raise international student visa fees to AUD$2,000, up from the current AUD$1,600, if re-elected, as part of the party’s policy costings ahead of Saturday’s federal election.

The visa fee hike could generate AUD$760 million over the next four years, according to a statement by Australian government representatives, as reported by Reuters.

A non-refundable visa application charge of $2,000 in the “visa approval lottery” makes Australia a far less attractive destination for students
^_ITECA

This move marks the Labor government’s second attempt to make Australian education less affordable for many international students, following last year’s increase in study visa fees from AUD$710 to AUD$1,600 in July.

The announcement comes just months after the Peter Dutton-led opposition, the Coalition promised to introduce a new AUD$5,000 visa fee for international applicants targeting Australia’s prestigious Group of Eight universities.

The Coalition has not only proposed a visa fee hike but also pledged to conduct a “rapid review” of Australia’s Temporary Graduate Visa (subclass 485). 

It has argued that the current post-study work arrangements are being misused as a means to gain employment and permanent residency in Australia. 

Additionally, the Coalition has suggested capping international student arrivals at 240,000 per year as part of its broader strategy for the international education sector.

While stakeholders view the ruling party’s latest hike announcement as another attempt to limit international students, they have highlighted the stark contrast between Labor and the Coalition’s approaches to the issue.

“Clearly, after the Coalition’s earlier announcement of $2,500 to $5,000 student visa charges, it is all too tempting to have another go at aspirational young people who think Australia might welcome them to study here,” stated Phil Honeywood, CEO of International Education Association of Australia (IEAA), in a LinkedIn post. 

“At least we have a commitment from Labor that they will be open to discussion about visa fee reductions as per IEAA’s Election Platform, which calls for a 50% discount for… study programs [of less than 12 months] including English language and learning abroad,” he added. 

Some organisations have also raised concerns about the uncertainty that the potential policy change could bring to the international education sector.

Highlighting that the visa fee hike would be an increase of 181.7% over the past twelve months, the Independent Tertiary Education Council Australia (ITECA) slammed the proposal. 

“A non-refundable visa application charge of $2,000 in the “visa approval lottery” makes Australia a far less attractive destination for students,” read a statement by ITECA. 

“For the businesses that support those students, today’s announcement creates more uncertainty and instability in an already difficult business environment.”

Australia’s visa fees, already among the highest of major study destinations, are just one of several restrictions imposed on international students in recent years.

In addition to announcing study visa processing directives for Australian institutions, linked to previously assigned individual provider caps, the government also tightened English language requirements for student and graduate visas last year.

The recent announcement comes as Australia has already begun early voting for the federal elections, despite concerns over campaign planning and logistics.

More than 18 million Australians are expected to participate in early voting, which began on April 22 and will conclude on May 1, as well as the formal election on May 3.

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