Australia Hikes Student Visa Fee to AUD$2,000, Further Straining International Education Sector

Australia, already known for having the world's most expensive student visa, has made studying in the country even costlier. Effective July 1, 2025, the Australian government has increased the student visa application fee from AUD$1,600 to AUD$2,000.

A spokesperson from the Department of Home Affairs confirmed the change, stating, “In line with the government’s election commitment, from 1 July 2025, the Visa Application Charge (VAC) for primary student visa applicants will increase to $2,000.” The fee had already seen a sharp 125% increase in July 2024, when it jumped from AUD$710 to AUD$1,600.

The government maintains that the increase aims to enhance the integrity of the student visa system and ensure that visas are issued to genuine students contributing to Australia’s sustainable economic growth. Fee concessions for primary applicants from Pacific Island nations and Timor-Leste will remain in place.

However, the hike has drawn concern from across the international education sector, especially among English Language Intensive Courses for Overseas Students (ELICOS) providers. These institutions, which typically cater to students enrolling in shorter-term courses, have been particularly hard hit by recent fee increases.

Following last year’s fee rise, ELICOS providers reported a 50% drop in enrolments, as many prospective students were unwilling or unable to absorb the added cost. The impact has been severe enough to force several schools to close their doors.

Perth International College of English (PICE) recently shut down, with owner and director John Paxton citing financial struggles tied to plummeting enrolments and escalating visa costs. The closure comes after similar announcements from other providers, including IH Sydney and The Language Academy, both of which also pointed to rising visa fees as a major contributing factor.

While the government insists the move supports quality and sustainability in the education sector, stakeholders fear it may further erode Australia’s competitiveness as a destination for international students.

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