Australia Visa Fee Backlash: Will Australia Lose International Students?

Australia immigration policies are under renewed scrutiny, especially with the sharp rise in student visa fees that could reshape the country’s English Language Intensive Courses for Overseas Students (ELICOS) landscape. As of July 1, 2025, the student visa application fee will surge to AUD $2,000, marking another steep increase after a 125% hike just a year prior. This has triggered alarm bells across the ELICOS sector, with stakeholders voicing urgent concerns about sustainability, student access, and the future of Australia’s international education strategy.

Significance of Rising Visa Fees for Australia’s ELICOS Sector

A Sharp Decline in Student Enrolments

Since the initial fee increase in July 2024, the impact on ELICOS enrolments has been dramatic. According to Ian Aird, CEO of English Australia, ELICOS-only student visa applications plummeted by 41% in just one month and have continued to fall since. The financial year saw offshore applications drop by 53% compared to the previous year. This steep decline reflects immediate deterrence for prospective students, especially those from price-sensitive markets like Southeast Asia and Latin America. As highlighted in StudyTravel Magazine, institutions like the Perth International College of English saw their enrolments cut by more than half post fee hike—a blow that led to its eventual closure.

Economic Fallout: School Closures and Job Losses

The rising visa fees, compounded by post-COVID fragility, have dealt a heavy blow to ELICOS providers. Perth International College of English is just one example; others like IH Sydney Training Services Ltd have also shuttered. Estimates suggest that between 2,000 to 3,000 ELICOS staff have lost their jobs. These closures don’t just affect businesses; they erode Australia’s global educational reputation built over decades.

John Paxton, Director of the recently closed Perth school, stressed how financially unsustainable it became to operate after the increase, with revenue models failing as enrolments dropped sharply.

Disproportionate Impact on ELICOS Compared to Other Sectors

Unlike university students who spend $60,000 to $80,000 in tuition fees, ELICOS students typically invest around $6,500 for a six-month course. The $2,000 visa fee represents an almost 30% markup, making Australia significantly less competitive compared to destinations like Canada or the UK, which offer more flexible visitor visa options.

Ian Pratt of Lexis English noted, “For a 16-week course, the visa fee feels absolutely absurd,” underlining the disproportionately high burden on ELICOS students.

Visa Policy Fallout Beyond ELICOS

The visa fee hike is not the only policy concern. The government also attempted reforms to cap enrolments in higher education and vocational sectors, though those were blocked by the Senate. These efforts created a climate of uncertainty, impacting student planning and institutional strategies across education sectors.

Justin Blake, CEO of BROWNS English Language School, emphasized, “The decline isn’t due to quality or interest. It’s a direct result of policy changes making access difficult for genuine students.”

Efforts to Adapt and Lobby for Change

Despite the challenges, there is a glimmer of hope. Post the May 2025 elections, lobbying efforts have intensified. Ian Aird shared a positive dialogue with Julian Hill, the new Assistant Minister for International Education, and proposed a differentiated visa fee structure for ELICOS-only students. English Australia, along with other peak bodies, is advocating for policy changes that could reinvigorate the sector, including reduced fees and sector-specific visa reviews.

Institutions are also pivoting to attract students through alternate visa types like Working Holiday and Visitor Visas. Lexis English is enhancing short-term programmes and boosting offerings in its booming Asian campuses to stay afloat.

For a deeper understanding of how U.S. policies like Trump’s student visa ban could benefit Australian migration, check out our detailed analysis.

The rising student visa fees are having a crippling effect on Australia’s ELICOS sector. From dramatic declines in enrolments to school closures and widespread job losses, the impact is deeply felt. Yet, with active lobbying, renewed government dialogue, and innovative institutional responses, there is a path forward.

To explore how these changes may affect your education plans or to get expert immigration guidance, schedule a consultation with A2Zimmi today.

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