Election 2025: International students slugged to fill Labor’s $750m spending hole

As both sides of politics pledge to cut international student numbers, Labor has announced a plan to cash in on visa applicants.

Both Labor and the Coalition plan to increase application fees for international student visas to Australia.

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Labor plans to squeeze $760m in extra revenue from foreign students by charging them $2000 to apply for a visa from July 1, after Home Affairs revealed it cancelled 15,535 study visas last year.

Finance Minister Katy Gallagher said the 25 per cent higher non-refundable fee “puts an appropriate price on the value of coming and studying in Australia’’.

“We feel like when we’re issuing visas, that they should properly reflect the benefit that comes from coming to study in Australia,’’ she said. “I think it’s good for inter­national education and a sensible and modest change to repair the budget and ensure we are able to fully offset the commitments we’ve made in this campaign.’’

The existing application fee for student visas is $1600.

Universities Australia chief executive Luke Sheehy said Australia was driving international students away through the world’s highest application fees. “Labor’s $760m saving assumes that international students will continue to choose Australia,’’ he said.

“We already have the highest student visa fees in the world and by raising them even further, which both major parties are now promising, we’re not exactly rolling out the welcome mat.’’

Australia had 608,262 foreigners studying in Australia on temporary visas in June last year, the most recent data shows, with 19 per cent from India and 16 per cent from China.

The Albanese government has been slowing the rate of new student visa approvals, while the ­Coalition has pledged to slash the number of new visas by 80,000 if it wins next weekend’s election.

The Department of Home Affairs told The Australian that it had cancelled 15,535 student visas last year under “general cancellation and character provisions’’.

Visas can be cancelled if the visa holders are found not to be genuine students.

International students must be enrolled in a full-time, registered course and meet progress and attendance targets, but students enrolled in university degrees costing up to $50,000 a year are allowed to switch to vocational courses offered by private providers.

Home Affairs raised concerns over “known quality and integrity issues’’ during a Senate inquiry into the Albanese government’s failed legislation to prevent course-hopping in the international education sector last year.

Finance Minister Katy Gallagher and Treasurer Jim Chalmers announce the fee hike for international student visas. Picture: NewsWire / Martin Ollman

“The department has evidence that recent growth in international education has in part been driven by non-genuine students and unscrupulous providers who are subverting the current regulatory framework,’’ its submission states.

“Restoring the integrity of the migration system and maintaining public support for the presence of international students in the community requires whole of government action. The social licence for migration will be supported through better planning of international student numbers that considers general infrastructure, public transport, housing and services such as health care.’’

Federal Education Minister Jason Clare withdrew his integrity legislation in November after the Coalition declared it would oppose Labor’s plan to set different caps for international student enrolments at every university and training college.

The Coalition has since pledged to raise application fees to $5000 for foreign students enrolling in the research-intensive Group of Eight universities of Sydney, NSW, Melbourne, Adelaide, Queensland, Western Australia, Monash University and the Australian National University.

Applications to other universities, as well as private training providers, would be raised to $2500; students switching education providers after they arrived in Australia would face a $2500 transfer fee.

The Regional Universities Network condemned Labor’s announcement of a $2000 fee. “The continued increases in student visa application fees ultimately erodes Australia’s desirability and competitiveness as a world-leading study destination,’’ a RUN spokesman said.

Western Sydney University said international students “fill critical frontline jobs and add immense value to our economy’’.

Luke Sheehy, Universities Australia chief executive, says Australia’s high fees will drive international students away.

“In many cases, their families have saved up their life savings to send them to study in Australia,’’ a spokeswoman said. “Once here, our students study and work hard, often under tough circumstances.’’

The University of Sydney, where half the students hail from overseas – a higher rate than any other provider – said it was already working to cap student numbers.

“We’re listening to the concerns of our community about the optimal mix of students and have been capping our student numbers in many of our courses for five years,’’ a spokesperson said.