Australia Doubles Visa Fee For International Students, Ends ‘Visa Hopping’ To Tackle Migration And Housing Crisis

Australia has increased international student visa fees to $1,600 and banned onshore visa applications for visitors and temporary graduates to end "visa hopping."

Representational Image | The Australian government aims to end ‘visa hopping’ by closing loopholes that allow temporary visa holders to extend their stay indefinitely.

Australia has more than doubled the visa fee for international students, a move the government says is aimed at addressing record migration numbers and the resultant pressure on the housing market. From Monday, the fee for an international student visa has increased to A$1,600 ($1,068) from A$710. Additionally, visitor visa holders and students with temporary graduate visas are now banned from applying onshore for a student visa.

Home Affairs Minister Clare O'Neil commented on the changes, stating, "The changes coming into force today will help restore integrity to our international education system, and create a migration system which is fairer, smaller and better able to deliver for Australia."

O'Neil further criticised the previous administration, saying, "When we came to government, we inherited a migration system that was broken and dysfunctional, and an international education system which was being compromised by rorts and exploitation." She emphasised that reform was essential after a decade of neglect under the former government, and that the sector has the power to drive growth and opportunity for the country.

Official data released in March showed that net immigration rose by 60% to a record 548,800 people in the year to 30th September 2023, news agency Reuters reported. The increased visa fees make applying for a student visa to Australia significantly more expensive than in other major destinations such as the U.S. and Canada, where student visas cost approximately $185 and C$150 ($110) respectively.

Australian Government Ends ‘Visa Hopping’

The Australian government also aims to end ‘visa hopping’ by closing loopholes that allow temporary visa holders to extend their stay indefinitely. The number of students on a second or subsequent student visa spiked by over 30% to more than 150,000 in 2022–23, Reuters reported. This move is part of a series of actions taken since late last year to tighten student visa rules as the lifting of COVID-19 curbs in 2022 led to record migration levels.

Other recent measures include tightening English language requirements in March and increasing the savings requirement for international students to A$29,710 ($19,823) from A$24,505 in May, marking the second increase in about seven months.

Universities Australia CEO Luke Sheehy expressed concern about the government's continued policy pressure on the sector, stating, "This is not good for our economy or our universities, both of which rely heavily on international student fees", as quoted by Reuters. International education is one of Australia's largest export industries and was worth A$36.4 billion to the economy in the 2022-2023 financial year.

Additional elements of the Migration Strategy also took effect, including increasing the Temporary Skilled Migration Income Threshold (TSMIT) from $70,000 to $73,150, shortening the duration of Temporary Graduate Visas, and reducing age eligibility. 

Australian Minister for Immigration, 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. 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."

These reforms also include enhancing mobility for temporary skilled migrants, extending the period they can remain in Australia between employer sponsors from 60 days to 180 days, and implementing the Strengthening Employer Compliance Bill 2023 to provide new criminal measures against employers exploiting migrants. Additionally, the Workplace Justice Visa Pilot has been introduced to allow temporary visa holders to stay in Australia for a short period when pursuing workplace justice.