Indian govt raises concern as Australia doubles student visa fees to AUD 1,600

The Indian government has expressed concerns about Australia's decision to raise international student visa fees from AUD 710 (around ₹38,930) to AUD 1,600 (about ₹87,731), starting July 1, 2024.

This was confirmed by Minister of State for External Affairs Kirti Vardhan Singh in a written response to the Rajya Sabha on Nov 28.

Singh recognized the fee increase, saying, “The fee for international student visas was increased by the Government of Australia. The matter has been taken up with relevant authorities along with other issues related to students.”

The minister pointed out that this increase would put a financial burden on foreign students, particularly those from India, who are looking to study in Australia.

He also emphasized the significance of India and Australia's educational collaboration, characterizing it as a vital component of their people-to-people and economic ties.

“This ministry continues to raise and follow up with the Government of Australia on matters related to students from India studying in Australia,” Singh added.

One of the main sources of international students in Australia is India. With 122,391 Indian students registered at Australian colleges between January and September 2023, India was the second-largest source of international students, according to official figures.

The India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into effect in December 2022, has opened up new opportunities for Indian students and professionals.

Key features of the agreement include post-study work rights, which grant Indian graduates in Australia post-study work visas based on their level of education.

Bachelor’s degree holders can stay for up to 2 years, Master’s degree holders for up to 3 years, and doctoral graduates for up to 4 years.

STEM and ICT graduates with first-class honors are eligible for an additional year, allowing them to stay for up to 3 years.

Another feature is the work and holiday visas, which include an annual quota of 1,000 visas for Indian citizens aged 18 to 30, allowing them to live and work in Australia temporarily.

The ECTA also provides mutual recognition of qualifications, establishing a framework to recognize professional qualifications, licensing, and registration, making it easier for Indian professionals to work in Australia across various sectors (excluding regulated professions like law and medicine).

Another feature is the youth mobility and cultural exchange programs, which provide opportunities for young Indians to gain work experience and participate in working holiday programs, enhancing cultural exchange between the two countries.

Recent data indicates a substantial drop in the number of student visas awarded to Indian students, regardless of the robust education relationship.

Australia issued over 298,000 student visas worldwide between October 2023 and August 2024, a 38% decrease from the prior period, according to official figures.

Indian students have faced a significant 56% decline in student visa approvals. This trend is not isolated, as other international student groups have also been impacted.

Filipino students saw the largest decrease, with a 67% drop in approvals, followed by Colombian students, who experienced a 62% decline.

Vietnamese students also faced a reduction, although to a lesser extent, with a 28% decline in visa approvals.

The decline in student visa approvals can be attributed to several policy changes introduced by Australia.

One of the major factors is the increase in visa fees, with the student visa application cost more than doubling from AUD 710 to AUD 1,600, effective July 2024.

This hike is intended to fund education integrity measures and deter fraudulent applications.

Another significant change is the stricter English language requirements, with the minimum IELTS score rising from 5.5 to 6.0 in early 2024.

Additionally, financial requirements for students have been increased; from May 2024, applicants must prove they have living expenses of AUD 29,710, up from AUD 24,505.

Other changes include reduced post-study work rights, where temporary graduate visas now permit shorter stays, with bachelor’s and master’s graduates limited to just two years.

Australia also introduced the genuine student’ requirement on March 23, 2024, replacing the previous Genuine Temporary Entrant (GTE) rule.

This new requirement assesses an applicant’s study history, plans, and intent.

Finally, restrictions on onshore visa applications have been implemented. From July 2024, holders of certain visas, such as Visitor (subclass 600) or Temporary Graduate (subclass 485), are barred from applying for student visas while in Australia.

These combined policy changes have led to a significant decline in student visa approvals.

With a 57% decrease in student visas, Australia's vocational education and training (VET) sector had the sharpest decline.

Higher education visas decreased by 25%, while English Language Intensive Courses for Overseas Students (ELICOS) decreased by 50%.

These reductions have impacted students seeking various types of education in Australia.

Financial difficulties and more stringent visa requirements are discouraging many students from choosing Australia, according to a poll conducted by the International Development Programme (IDP) Education.

Key findings reveal several factors influencing students' decisions to withdraw from international study plans.

Less than 49% of students cited unaffordable tuition fees as a major reason, while just under 35% pointed to the high cost of living.

Another 35% were discouraged by expensive visa fees, and 29% found the process of securing a student visa to be too challenging. According to an IDP counsellor, “Students want stability.

Unpredictable visa policies add a lot of pressure, and it’s becoming a key factor in decision-making.”

These challenges are contributing to a growing sense of uncertainty among prospective international students.