International students will face new challenges when choosing Australia as a study abroad destination. Two big developments by the Australian government are likely to affect international students. First, the student visa fee has increased, and second, the Temporary Skilled Migration Income Threshold (TSMIT) has been raised.
International students looking to study in Australian universities will have to shell out a higher amount of fee for foreign student visas. Since July 1, 2024, the fee for international student visas has been increased from $710 to $1,600, a 125% hike. This means students will need to pay an additional $890 to cover the $1600 visa fee.
Dr John Lodewijks, Vice President – Academic & Professor of Economics at SP Jain School of Global Management says, “While the significant rise in cost may deter some budget-conscious prospective students, this policy change may also prompt students to explore diverse funding options and seek scholarships more proactively, fostering financial resourcefulness.
For students who may be reconsidering Australia, destinations like London, Dubai, and Singapore are becoming attractive due to streamlined visa processes, increased accessibility to information, and making global education more feasible for students.”
Additionally, the Temporary Skilled Migration Income Threshold (TSMIT) has been increased from $70,000 to $73,150. This limit applies to nomination applications lodged between July 1 and June 30, 2025. Further, new rules are in place shortening the duration of Temporary Graduate Visas, and reducing the age eligibility, among others.
Mayank Maheshwari, Co-founder & COO, University Living says, “Recent adjustments in Australian student visa fees and migration policies indicate a strategic approach to managing immigration while prioritizing educational quality. Australia’s Group of Eight universities remain the prestigious choice for international students seeking top-tier education.
While we understand that the visa fee hike will impact the financial situation of students, these changes aim to attract only the cream-of-the-crop students who are committed to their academic pursuits, ultimately enriching Australia’s academic landscape with their diverse contributions. Additionally, these measures are expected to help reduce fraud.”
Australia remains a popular higher education destination due to its high educational quality and diversified options. How the popularity of Australia gets impacted in the long run, only time will tell. Manisha Zaveri, Joint Managing Director, Career Mosaic says, “Despite acknowledging Australia’s efforts towards sustainable management of educational expansion and quality, this policy change may create financial constraints for many potential students.
Consequently, these measures could discourage prospective learners and impair Australia’s appeal as a destination for higher education and skilled labor. What is needed are nuanced policies and assistance strategies that consider both sides: affordable educational standards alongside maintaining their quality while increasing diversity at institutions thereby ensuring competitive edge for Australia as desired by students going outside their country for studying.”