Australia’s $2,000 student visa fee triggers industry backlash, calls for cuts

(AUSTRALIA) Australia’s student visa fee rose to AUD 2000 on July 1, 2025, triggering sharp backlash from peak education bodies who say the price jump is pushing students away and hurting English language programs. The government says the rise is part of a wider migration plan to curb net arrivals and improve visa integrity, but sector leaders warn the cost now far outstrips rival destinations and is worsening a steep drop in new enrolments.

As of September 26, 2025, the fee remains in place and it is non-refundable even if a visa is refused. Exceptions apply to applicants from Pacific Island countries and Timor-Leste, who are exempt from the increase. Australia now charges the highest application price among major English-speaking study markets: the United States 🇺🇸 charges USD $185, Canada 🇨🇦 CAD $150, and the UK charges £524.

Policy changes and timeline

The price rises have come in two steps:

1. In July 2024, the student visa charge jumped from $710 to $1,600 — a 125% increase.
2. On July 1, 2025, it rose again to AUD 2000 — a further 25% hike.

The government argues the higher fee:
– Better reflects processing costs
– Supports efforts to reduce overall migration
– Tightens financial checks
– Aims to lift English standards for new entrants

Officials have also trimmed some post-study work rights and signalled a cap on international student commencements at 270,000 in 2025.

Assistant Minister for International Education Julian Hill has acknowledged that providers are hurting and confirmed the government is reviewing options in response to stakeholder feedback. He has pointed to other pressures — such as tougher integrity settings — also weighing on student numbers. No commitment has been made to reduce the fee.

Peak bodies led by the International Education Association of Australia (IEAA), English Australia, and the Independent Tertiary Education Council Australia (ITECA) are calling for an urgent 50% cut, especially for:
– Short-term and English language (ELICOS) programs
– Non-award courses under 52 weeks

They argue these students are price-sensitive, enroll quickly, and often choose between several countries. A high up-front fee acts as a deterrent long before a student can weigh campus quality or lifestyle.

Impact on applicants, providers and communities

Sector data showing the strain:
– International student commencements fell 16% year-on-year to July 2025.
– ELICOS enrolments dropped nearly 40%.
– Multiple English language colleges have closed, with estimates of 2,000–3,000 job losses.

Providers report that short courses — often one semester or less — cannot absorb a steep application cost without pushing total study budgets above competing offers abroad. The fee is charged per application, regardless of course length or tuition price.

For example:
– For a six-month English course, AUD 2000 may exceed a month’s tuition, flipping the cost equation for families who planned a modest program to build English or test study abroad before committing to a degree.

According to analysis by VisaVerge.com, this price shock is reshaping student choices at the margin, especially for those comparing Australia with lower-fee destinations.

Non-refundable risk and student/agent concerns

The fee’s non-refundable nature amplifies worry:
– Agents and colleges say students fear losing the entire amount if a case fails due to updated financial or English checks.
– For longer, higher-cost degrees, that risk may feel manageable. For short courses, it can be a deal-breaker.

Government officials say fee revenues support system improvements and reflect real processing costs. But onshore communities that rely on ELICOS and pathway programs — homestay hosts, casual tutors, hospitality staff near language schools — are already feeling the downturn. Some city centres report fewer short-term students, who typically spend more on local services than longer-term students tied to campus routines.

Advocacy groups also argue the fee erodes Australia’s brand as an open, high-quality study destination. They stress that students read headline costs first, often before understanding scholarships, work rights, or regional incentives. If the first number they see is AUD 2000, they may never make the second call.

Proposed sector responses

Peak bodies propose two targeted steps:
– Halve the charge for independent ELICOS and non-award courses under 52 weeks.
– Offer a scaled fee that better reflects course length.

They say these measures would address the steepest pain points without changing the government’s broader migration goals.

Providers and institutions are adapting:
– Universities and colleges are increasing outreach in exempt Pacific markets.
– Closer coordination with agents aims to reduce avoidable refusals.
– Some providers are bundling English with degree pathways so the upfront cost serves a longer plan, rather than a short, stand-alone course.

Official guidance and applicant advice

The Department of Home Affairs continues to process Student visa (subclass 500) applications through Student visa (subclass 500) and ImmiAccount. Official guidance urges applicants to:
– Budget for higher up-front costs
– Prepare strong evidence of funds and English ability
– Follow current settings closely

For policy details, see the Department of Home Affairs Student visa (subclass 500) page:
https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-listing/student-500

Student advocates recommend:
– Apply early
– Keep documents accurate and complete
– Choose courses that match genuine study intent

Schools are expanding pre-application checks and offering clearer fee explanations to help students weigh the student visa fee against total program costs.

Wider economic and political implications

The political debate will likely intensify as closures mount and regional campuses report fewer pathway students feeding into bachelor’s programs. Business groups warn English language providers play a key role in training workers for the tourism and care sectors. Without a pipeline of learners who start in ELICOS, Australia may face gaps that cannot be filled quickly.

Officials note fee levels are only part of a larger shift:
– Higher English requirements and stronger financial tests aim to reduce exploitation and raise outcomes.
– Supporters argue these steps will lift quality and improve completion rates.
– Critics counter that blunt price signals do not distinguish between genuine students and bad actors, and that better enforcement would be fairer than an across-the-board AUD 2000 charge.

Current status and outlook

For now, the policy stands. The fee remains the highest among peers, and the backlash from peak bodies shows no sign of easing. Whether the government opts for a targeted reduction for short courses — or keeps the current settings to meet migration goals — will shape student flows into 2026 and beyond, especially for English language colleges that depend on fast-moving enrolments.

Key takeaway: The AUD 2000 student visa fee is intended to tighten migration integrity and cover processing costs, but its blunt application—especially to short, price-sensitive ELICOS and non-award courses—has already driven substantial enrolment falls, job losses, and closures. The sector is calling for targeted relief; the government has acknowledged harm but has not yet committed to a fee cut.