The cost of studying in Australia has soared, but why the low student visa approval rates?

On 1 July, Australia increased student visa application fees from $710 to $1,600. Experts say the move could deter students from choosing the country over others like the US or Canada, and fail to generate the revenue that the government expects.

Australia recently implemented a substantial increase in student visa application costs. Source: AFP / NARINDER NANU/AFP via Getty Images

Key Points

• The Australian government announced an increase in international student visa fees from $710 to $1,600.
• The visa hike is said to help fund a number of important initiatives in education and migration.
• Experts criticise the hike as 'unfair' and suggest the move might fail to generate the expected revenue for the government.

Australia's student visa application costs are now significantly higher than those of countries like the US ($185) and Canada ($110).

This change comes amid a series of stricter immigration policies, including a work limit of 48 hours per fortnight, an end to 'visa hopping', shorter durations for Temporary Graduate Visas, and reduced age eligibility.

Lower student visa approval rates

The number of international student visas granted for 2023-24 (till 31 May) is significantly lower as compared to the previous financial year.

The number of lodged visas decreased from 514,580 to 441,613 year on year.

During the current financial year up to 31 May, 39,322 Australian student visas were granted to Indian nationals, compared to 85,844 in the previous financial year. (Representative image) Source: AFP / PRAKASH SINGH/AFP via Getty Images

Similarly, the number of granted visas decreased from 499,690 to 289,509 during the same period.

As of 31 May, 39,322 student visas were granted to Indian nationals during 2023-24, compared to 85,844 in 2022-23.

Neha Singh, a certified migration agent, said there had been an increase in visa refusals amid widespread uncertainty caused by recent policy changes.

"Currently, there is a lot of panic caused by numerous visa changes and we are hoping that the recent fee increase would mark the end of changes for now," she said, adding that only half of the student visa applications her office submitted were approved.

'Completely unfair'

SBS Hindi interviewed migration and education industry experts, student organisations and students who voiced opposition to the price hike.

Gurnam Singh, founder of the Australian Indian Sports, Educational and Cultural Society, a Sydney-based, not-for-profit organisation that promotes links with India, cited Australia as an increasingly costly option for international students.

He expressed apprehension that the decision would not only damage the economy but also deter students from choosing Australia as their educational destination.

Gurnam Singh, founder of the Australian Indian Sports, Educational and Cultural Society. Credit: Supplied

He said that after the decision was made public, several Indian students approached him for financial assistance.

"One girl who had saved just $710 for her application now suddenly needed $1,600," he recounted, criticising the decision as "un-Australian and unfair".

Nishidhar Borra, the head of the Association of Australian Education Representatives of India (AAERI), also slammed the decision.

"From this move, it is very clear that international students are seen as 'cash cows' for the Australian education sector ... Once a student visa is declined, students will lose $1,600, and there is no right to review," he said.

Head of the Association of Australian Education Representatives of India (AAERI) Nishidhar Borra. Credit: Supplied

Borra argued a "better methodology" could have been adopted.

"The same fee can be divided into two segments: one for the pre-visa assessment and the balance after the assessment if the visa is to be granted," he said.

He added that there had been no clarity on how this increase would restore the integrity of international education as mandated by the government.

"This increase in the application fee clearly shows that students are not welcome. Many genuine students wanting to study at world-class institutes in Australia will back off," he said.

Bhavya Sharma, an international student and president of the Indian Graduate Student Society at the University of Melbourne, also described the move as "completely unfair".

Bhavya Sharma, an international student in Melbourne. Credit: Supplied

"Students are already struggling with the high cost of living here, and this will add further financial pressure on them," she said.

The potential impact

Abul Rizvi, an immigration expert, has long been advocating against the fee increase.

"The fee increase would mean that the best students, who generally have greater choices in where they decide to study, will more likely choose other nations over Australia," he said.

"Why risk a non-refundable application fee ... when the outcome is uncertain?" he asked.

Earlier this year, the Grattan Institute proposed an increase in student visa application fees. Source: Getty / Getty Images

Earlier this year, the Grattan Institute proposed an increase in student visa application fees to pay for an increase in Commonwealth Rent Assistance.

But Rizvi said: "The level of revenue that this measure may raise could also have been overstated by Grattan because the government is already acting to reduce the level of student visa applications through a major increase in refusal rates."

Gurnam also argued that this revenue generation idea was bound to fail because Australia could experience reduced applications.

"The approval rate from India has significantly declined, and the increase in visa fees will now further discourage prospective students from applying for Australian student visas," he said.

"So if we have fewer students applying, how can the government generate an income?"

Rizvi added that the growth rate of Indian students in Australia in 2024 and 2025 was bound to slow down as compared to 2023.

"However, Indians will remain the largest source nation for permanent migrants in 2024 and 2025," he said.

The government's decision

A Department of Home Affairs spokesperson told SBS Hindi that the Visa Application Charge (VAC) for Student and Student Guardian Visa applications represented "a one off increase".

"The increased VAC applies to all visa applications lodged on, or after, 1 July 2024," the spokesperson said.

The hike is said to help fund a number of important initiatives in education and migration.

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

Minister for Education Jason Clare during Question Time in the House of Representatives at Parliament House in Canberra. Source: AAP / MICK TSIKAS/AAPIMAGE

"These changes will strengthen integrity in the international education system and help to fund important reforms recommended by the Universities Accord, including making HECS fairer, paid prac and expanding FEE-Free Uni Ready courses."

Minister for Citizenship and Multicultural Affairs Andrew Giles said: "Our reforms will help vulnerable workers speak up, while we crack down on employers doing the wrong thing."

Minister for Citizenship and Multicultural Affairs Andrew Giles. Source: AAP

“We’re getting on with the job of delivering higher wages for skilled migrants and Australians after a decade of the former Liberal Government deliberately keeping wages low.”

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