Australia’s ruling Labor Party announced on Monday that it plans to increase visa fees for international students to A$2,000 ($1,279) if it wins reelection, marking the latest policy move targeting the country’s lucrative education sector — a major driver of immigration.
Treasurer Jim Chalmers and Finance Minister Katy Gallagher revealed that the fee hike, up from the current A$1,600, is expected to generate A$760 million over the next four years, according to the Labor Party’s election policy costings.
“We believe this is a sensible step that underscores the value of studying in Australia,” Gallagher said during a press conference.
This would be the second major increase in recent times — the government previously more than doubled the international student visa fee from A$710 to A$1,600 in July last year.
Meanwhile, Australia’s conservative opposition has proposed an even steeper rise, pledging to lift the fee to at least A$2,500, and up to A$5,000 for applicants to the country’s elite Group of Eight universities.
International students are a vital revenue stream for Australian universities but have also contributed to a surge in net migration, exacerbating housing shortages and rising living costs.
Government data shows nearly 200,000 international students arrived in Australia in February 2025 — a 12.1% increase from the previous year and 7.3% higher than pre-pandemic levels in February 2019.
Labor has also promised to cap new international student enrolments at 270,000 in 2025, while the opposition is advocating for a tighter limit of 240,000.
In 2024, more than one million international students were enrolled in Australia, with 572,000 commencing studies.
Visa costs for international students in Australia are already substantially higher compared to similar destinations: about $185 in the United States and C$150 ($108) in Canada.
In addition to fee hikes, the Australian government last year tightened English language requirements for both student and graduate visas.
