Australia has sharply increased student visa fees in a bid to curb immigration

Australia has announced a 125% increase in visa fees for international students in a bid to control record immigration. The surge in immigration has added pressure to Australia's already tight property market.

From July 1, the visa fee for international students will increase from $710 to $1,600, and tourist visa holders and students on temporary graduate visas will be banned from applying for student visas in Australia.

The Australian government will also close loopholes in visa regulations to prevent foreign students from repeatedly extending their stay. The number of foreign students whose student visas were extended at least once increased by more than 30 per cent between 2022 and 2023.

Home Affairs Minister Peter O 'Neill said on Monday the new measures would help restore the integrity of Australia's international education system and create a "fairer, smaller immigration system that works better for Australia".

The additional revenue generated by the increase in international student visa fees will be used to fund Australian students, as well as financial assistance for local apprentices and employers.

Australia has seen a surge in arrivals as it reopens its doors after the coronavirus outbreak. Official figures in March showed inbound net migration rose 60 per cent to a record 548,800 in the year to September 30, 2023. The number of international students in Australia has surged to more than 650,000 in the wake of the pandemic, far higher than before the pandemic and double what it was nearly a decade ago.

Housing in Australia is already in short supply, and the influx of outsiders has exacerbated the problem, forcing authorities to curb the influx. Immigration will be a key issue in Australia's general election next year, and both parties have pledged to tighten immigration policies.

Visa fees for international students in Australia are already much higher than those of competitors such as the US and Canada, which charge around US $185 and C $150 respectively. The Australian government has further raised visa fees for international students, prompting local universities to worry about a decline in foreign students.

"This is bad for our economy and bad for our universities, both of which are highly dependent on international student fees," said Sheehy, chief executive of Universities Australia.

The international education sector is one of Australia's largest exports, generating A $36.4 billion in the 2022-2023 financial year.

Australia has been gradually tightening its student visa rules since late last year. In March, the authorities raised the minimum English proficiency requirements for international students. From May, international students will have to show they have at least $29,710 in savings when applying for a visa, up from $24,4505. It was the second increase in seven months.

In addition, according to Australia's previously announced immigration restrictions, from July 1, the minimum annual income standard for temporary skilled migrants will also be raised from the original 70,000 Australian dollars to 73,150 Australian dollars.