As Australia approaches its federal election on May 3, 2025, the political landscape is heating up, particularly concerning international student visa fees. On April 28, 2025, Treasurer Jim Chalmers and Finance Minister Katy Gallagher of the Labor Party announced a proposal to increase international student visa fees to AUD$2,000, up from the current AUD$1,600, should they secure re-election. This proposed hike is expected to generate an additional AUD$760 million over the next four years, according to statements from government officials reported by Reuters.
This announcement has sparked significant concern among international education stakeholders, who fear that such a fee increase could deter overseas students from choosing Australian institutions for their studies. Phil Honeywood, CEO of the International Education Association of Australia (IEAA), expressed his apprehension on LinkedIn, stating, "Clearly, after the Coalition’s earlier announcement of $2,500 to $5,000 student visa charges, it is all too tempting to have another go at aspirational young people who think Australia might welcome them to study here." He added that Labor's commitment to discuss potential visa fee reductions is a silver lining amidst the fee hike.
The proposed increase marks the second time in less than a year that the Labor government has raised study visa fees. Last July, fees were increased from AUD$710 to AUD$1,600. This latest announcement comes on the heels of the Coalition's earlier proposals, which included a staggering AUD$5,000 visa fee targeting international applicants to Australia’s prestigious Group of Eight universities. The Coalition has also suggested capping international student arrivals at 240,000 per year, as part of their broader strategy for the international education sector.
Critics argue that these moves by both major parties signal a troubling trend for international education in Australia. The Independent Tertiary Education Council Australia (ITECA) condemned the recent proposal, highlighting that the fee increase represents a 181.7% hike over the past year alone. ITECA stated, "A non-refundable visa application charge of $2,000 in the 'visa approval lottery' makes Australia a far less attractive destination for students. For the businesses that support those students, today’s announcement creates more uncertainty and instability in an already difficult business environment."
As early voting commenced on April 22 and is set to conclude on May 1, millions of Australians have already cast their ballots. With over 18 million expected to participate in the electoral process, the implications of these policy announcements are significant. Many voters have raised concerns about the feasibility of these proposals and the potential impact on the international education sector.
The upcoming election sees the Labor Party holding 78 out of 151 seats in the House of Representatives, granting them an overall majority. The Coalition, meanwhile, holds 54 seats, with the Greens at four and independents at 13. With the lower house returning to 150 members, the target for a majority government remains at 76 seats. The Coalition currently holds 30 seats in the Senate, while Labor has 25 and the Greens 11, with the remaining 10 seats occupied by independents and minor parties.
In the lead-up to the election, the political atmosphere is charged with speculation regarding potential outcomes. Poll trackers indicate that while the Coalition began the year with a steady lead, Labor has since narrowed the gap and may even surpass the Coalition in the coming days. Many analysts believe that a hung parliament is the most likely outcome, with Labor positioned to form a minority government.
Voting in Australia is compulsory, and those who have not yet registered to vote are unable to participate in the election. The postal voting application deadline is set for 6 PM on April 30, 2025, and all postal votes must be received by the Australian Electoral Commission (AEC) no later than 13 days after polling day to be considered valid. For those unable to vote in person on election day, early voting centers remain open until May 2, with some centers opening as late as April 28 and all closed on Anzac Day, April 25.
The recent announcements regarding student visa fees have raised questions about the future of international education in Australia. With both major parties proposing significant increases, stakeholders worry that the country may lose its appeal to prospective international students. As the election date approaches, the ramifications of these policies will likely be a focal point for many voters, especially those in the education sector.
Amidst this backdrop, the Labor Party's proposal to raise student visa fees appears to be a double-edged sword. While it may provide a much-needed financial boost to the government, the potential deterrent effect on international students could have long-lasting implications for Australia's education sector. As stakeholders continue to voice their concerns, the outcome of the election may very well hinge on how these policies resonate with voters.
