Australia has long been a top destination for international students, but starting 1 July 2025, it will come with a much higher price tag. The application fee for the Student Visa (subclass 500) will increase from $1,051.28 to $1,314.14, marking a sharp 25% rise that has sparked concern among students and educational institutions worldwide.
This change officially makes the Australian student visa the most expensive in the world, overtaking similar visa costs in the United Kingdom, the United States, and Canada.
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What Is the Student Visa (Subclass 500)?
The Student Visa (Subclass 500) allows international students to study full-time at an accredited Australian university. It is valid for up to five years, depending on the length of the academic program.
Key Features:
- Permits part-time work while studying
- Allows dependent family members to accompany the student
- Provides access to Australia’s public health system through OSHC (Overseas Student Health Cover)
- Offers a path to post-study work visas after graduation
Because of these benefits, this visa is central to Australia’s evolving migration strategy, especially as the government seeks to curb misuse.
Why the Student Visa Fee Is Increasing
This increase is more than a pricing update — it reflects a strategic policy shift by the Australian government.
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Key Reasons:
- Preventing misuse: The government aims to deter non-genuine visa applications that exploit student visas as a migration loophole.
- Boosting revenue: The higher visa fee will help fund public services tied to international student support.
- Reinforcing credibility: Officials argue that the system must be restructured to ensure long-term sustainability and protect its global reputation.
This fee hike follows an even steeper increase in 2024, when the fee jumped from $466.54 to $1,051.34 — more than doubling within a year.
Who Is Affected by the New Visa Fee?
The new $1,314.14 fee will apply to:
- All new Student Visa (Subclass 500) applications submitted on or after 1 July 2025
- Students starting their academic programs in late 2025 or 2026
- Applicants from all countries, with no exemptions for lower-income nations
How Prospective Students Can Prepare
If you’re planning to study in Australia, here’s how to manage the financial impact:
- Adjust your budget: Factor in the new visa fee, tuition, living expenses, and health insurance.
- Apply early: If eligible, submit your application before 1 July 2025 to avoid the new fee.
- Explore scholarships: Some institutions may offer financial support or cover visa fees.
- Compare destinations: Consider alternative study locations such as the UK, Canada, or Europe, especially if affordability is a concern.
Reactions From Students and Educators
The announcement has drawn mixed responses from education agents, universities, and students.
Criticisms:
- Many argue that the higher fee will deter students from low- and middle-income countries, especially in South Asia, Southeast Asia, and Africa.
- Student organizations fear the changes will create new barriers for talented individuals who cannot afford the added costs.
Support:
- Advocates for the increase claim it will ensure the quality and integrity of the system by prioritizing serious and financially prepared applicants.
- They also see it as necessary to manage public services strained by record student enrollments.
Despite the cost increase, Australia continues to offer world-class universities, a multicultural student community, and pathways to post-study work and permanent residency. For students committed to studying in Australia, early planning and financial preparation are now more important than ever.
