Australia's Visa Policy Shake-Up: 125% Visa Fee Increase | Australia Immigration News

A recent survey highlights how new financial requirements for Australian study visas are affecting prospective international students. A significant portion of students from China and India, as well as other Asian and African countries, indicated that their study plans might change due to Australia's increased visa fees, higher savings thresholds, and high visa rejection rates.

Survey Demographics

The survey, conducted in June 2024, included over 1,400 international students, with a majority exploring postgraduate options (60%) compared to undergraduate (28%), vocational, and pathway programs. Indian students comprised one-third of the respondents, making it a heavily weighted sending market.

Awareness of New Savings Threshold

Overall, three-quarters of the surveyed students were aware of the new requirement to show savings of AUD$29,710 (US$19,537) for an Australian study visa. This amount is significantly higher compared to other destinations, such as Canada, where the required savings are US$5,000 less. Awareness of this requirement was highest in India and Nepal (90%), but much lower in Ghana (45%) and Taiwan (40%).

Impact on Study Plans

About 53% of students stated that the new savings threshold would not change their intention to study in Australia. However, nearly half indicated that it might affect their decision. The impact varied across different markets. For instance, in Cambodia and the Philippines, about three-quarters of students said the new requirement would influence their decision. In contrast, only 27% of Chinese and 15% of Taiwanese students reported a potential change in their plans due to the savings requirement.

Effect of Increased Visa Fees

Effective July 1, 2024, the Australian government raised the visa application fee to AUD$1,600, a 125% increase from the previous AUD$710. Although the survey was conducted before the fee increase was announced, a significant proportion of students indicated they might reconsider their destination due to a potential fee hike. Nearly 63% said they "would" or "might" change their study plans in response to higher fees.

This sentiment was particularly strong among students from the Philippines, Malaysia, and Vietnam, who are crucial sending markets for Australian institutions. Around 40% of students from Kenya, Nepal, Pakistan, and Ghana also said that increased visa fees would impact their study plans.

New Zealand as an Attractive Alternative

In light of the financial changes in Australia, New Zealand is becoming a more attractive study destination for many prospective students. The relative affordability of New Zealand visas and lower savings requirements (AUD$10,000 less than Australia) are significant factors. Over 40% of Pakistani and Filipino students, and more than 70% of Ghanaian and Egyptian students, are influenced by these factors.

Additionally, New Zealand's expanded Green List of priority skills, which facilitates post-study work visas, is appealing to many students. Approximately one-third of students indicated that the Green List would influence their choice of degree or destination, with higher percentages in the Philippines, Indonesia, and Malaysia.

Increased Benefits in New Zealand

New Zealand has also introduced provisions that enhance its attractiveness to international students. Partners of students pursuing bachelor’s degrees or higher linked to the Green List are now eligible for work visas with open conditions. Additionally, children of these students do not have to pay international student tuition fees. These changes are likely to further increase New Zealand’s appeal.

Resilience Despite Visa Rejections

Despite the financial and procedural challenges, many students remain resilient in their pursuit of studying abroad. On average, about 1 in 6 survey respondents had experienced a study visa rejection, but over 70% of prospective students still plan to pursue an Australian visa. Only a small number indicated that they would choose to study in their home country as a result of a visa rejection.

The recent financial changes in Australia, including increased visa fees and higher savings thresholds, are impacting international students' decisions. While Australia remains a popular study destination, the attractiveness of other countries like New Zealand is growing due to more favorable financial conditions and supportive policies. Institutions and stakeholders must monitor these trends and adapt their strategies to attract and support international students effectively.