Australia’s ruling Labour Party has announced plans to raise international student visa fees to A$2,000 if returned to office, as part of a broader strategy to manage immigration and generate revenue from the country’s booming education sector, Reuters reported on Monday.
The proposed increase, up from the current A$1,600, is expected to generate A$760 million over four years, according to a statement released Monday by Treasurer Jim Chalmers and Finance Minister Katy Gallagher.
The announcement forms part of Labor’s fiscal plan ahead of Saturday’s federal election.
“We think that’s a sensible measure that prizes the value of studying here in Australia,” Gallagher said during a news conference.
The proposed A$400 hike, if the ruling Labor Party is re-elected, is part of a broader strategy aimed at overhauling migration policy and restructuring the education sector.
The announcement, made ahead of the upcoming federal election, places immigration and education reform at the centre of political debate.
The latest hike follows a previous increase in July 2023, when visa fees more than doubled from A$710 to A$1,600.
If implemented, it would mark the second major increase within two years, further cementing Australia’s position as one of the most expensive study destinations globally based on visa costs alone.
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By 2025, inte rnational students would pay A$2,000 to study in Australia, vastly outpacing global competitors. The United States charges USD 185 (about A$290), and Canada’s CAD 150 fee translates to around A$160, making Australia’s pricing significantly steeper.
Australia’s international education sector, valued for the billions it generates in tuition revenue, is facing mounting pressure amid rising migration and housing concerns.
In 2024, more than 1 million international students were enrolled across the country, underscoring the sector’s economic importance.
However, a surge in arrivals, nearly 200,000 students landed in February 2025 alone, up 12.1% from the previous year and 7.3% above pre-pandemic levels, has intensified scrutiny over the sector’s role in Australia’s broader migration trends.
In response, the government plans to cap international student numbers at 270,000 in 2025, while the conservative opposition is calling for an even tighter limit of 240,000. These measures are part of a wider strategy to control net migration, which has risen significantly since the pandemic.
The visa fee structure is also tightening. The planned increase to A$2,000 in 2025 follows an earlier hike in July 2023, when fees more than doubled from A$710 to A$1,600, marking the second major increase in under two years.
Meanwhile, the opposition has proposed an even steeper pricing model: a minimum of A$2,500, and A$5,000 for top-tier institutions such as those in the Group of Eight universities.
Alongside the student cap, prospective students can expect higher upfront costs starting in 2025, including increased visa and tuition fees.