Explained| How Australia's New And Stricter Student Visa Rule and Fee Hike Will Impact Indians

The Australian government has announced significant changes to its student visa rules, effective July 1, 2024. The application fee for international students has been hiked to AUD $1,600(INR 89K), which is a 225% jump from the previous fee of AUS$710(INR 39K). Aimed at restoring integrity to the international education system and creating a fairer migration system, these new rules are expected to have a considerable impact on Indian students. These new charges are applicable to the upcoming September intake. 

Australia is one of the most preferred study destinations for Indians. Its top-notch quality education system, job market, and scenic beauty attract Indians every year.

Key Changes in Australian Student Visa Rule

1. Offshore Applications: Student visa applications will only be accepted from offshore applicants. Temporary Graduate visa holders, Visitor visa holders, and other specified visa holders currently in Australia will not be eligible to apply for student visas.
2. Fee Hike: The application fee for student visas has been doubled from AUD 710 to AUD 1,600.
3. Stricter English Language Requirements: Temporary Graduate visa holders will now face stricter English language proficiency requirements.
4. Shorter Post-Study Work Rights: Post-study work rights will be significantly shorter.
5. Age Eligibility: The age eligibility for Temporary Graduate visa holders has been reduced from 50 to 35 years.

Impact on Indian Students:

Increased Financial Burden: The fee hike will make Australian student visas more expensive for Indian students, who constitute the second-largest group of international students in Australia. The application fee has risen to AUD 1,600 (INR 89K), a 225% increase from the previous AUD 710 (INR 39K). 

Twice the student visa fee for Australia will be adding to the cost of studying in the nation, that might be discouraging for students.

The finances will also increase after the implication of the rules. This will add to the accommodation, fees and other expenses.

Reduced Opportunities: The changes will reduce opportunities for Indian students to pursue higher education in Australia, especially for those seeking to extend their stay in the country.

Stricter Requirements: Indian students will face stricter English language proficiency requirements, making it more challenging to secure a student visa.

The complexity of the application process from outside the nation is also increased.

Students who are currently on temporary visas will be losing the ability of switching to student visas within the country.

Besides the higher savings requirements, with a reduced maximum eligible age for certain visas, complicate matters further.

Temporary graduates must secure employer-sponsored visas or leave upon expiry, limiting their work opportunities after the changes in the rules.

Experts believe these changes will negatively impact the number of Indian students applying for Australian student visas. The move is expected to benefit Australian universities by allowing them to focus on quality over quantity. However, this might not fully offset student immigration numbers, and universities may need to offer hardship scholarships to attract international students.

The Australian government's decision aims to address record-high migration levels that have strained the housing market. The changes will help ensure that only genuine students are granted visas, supporting the country's economic growth. However, the impact on Indian students remains a concern, and it is yet to be seen how these changes will affect the number of Indian students pursuing higher education in Australia.

"The visa fee hike was anticipated, but no one expected it to be over 100%. This increase could be an additional deterrent on top of the already high costs of tuition, accommodation, and living expenses. The increased visa fees add to the already high cost of studying in Australia, which can range from 50,000 to 80,000 AUD. For many Indian families, this means more financial stress. We have seen more students asking about scholarships and financial aid options right away. Some students are also looking at cheaper options, like studying in countries with lower fees or choosing shorter courses to reduce overall costs. This decision is likely to drive Indian students to explore alternative destinations. Countries like Canada, the UK, and Germany offer competitive educational opportunities with more affordable visa fees. However, I believe that this impact is temporary. While we may see a marginal reduction in the number of Indian students choosing Australia, the long-term effects are expected to stabilize. Once students and their families adjust to the new fee structure and recognize the value of an Australian education, the flow of international students may return to previous levels," said Subhakar Alapati, Founder Director, Global Tree Careers.

Additional Charges:

The new charges also apply to accompanying dependents:
- For each accompanying applicant aged 18 and over: AUD 1,445 (INR 80K)
- For accompanying family members under 18 years old: AUD 390 (INR 21K)

Visa Requirements:

Students must meet several criteria to be eligible for an Australian student visa after 12th grade, including:
- A Confirmation of Enrolment (CoE) from a registered Australian educational institution.
- An IELTS score of at least 6.0 or equivalent scores from other accepted tests (TOEFL, PTE, CAE, OET).
- Evidence of sufficient funds to cover tuition fees, living expenses (approximately INR 16L per year), and travel costs.
- Appropriate welfare arrangements for applicants under 18.
- A medical examination and police clearance certificate to meet health and character requirements.
- No outstanding debt to the Australian government.

Mamta Shekhawat, founder of a study abroad platform, Gradding.com says, "I can’t see how this can compensate for any decline with regard to students wishing to immigrate to the country. In addition, universities will be at a loss as they will find themselves once again having record-low international enrollments during the coming intake. They will need to offset this by offering hardship scholarships to students who cannot afford them. Let us hope this is only a stop-gap measure and that reason will prevail upon those in power so that they can find less destructive ways of addressing these issues."

"Australia's recent hike in visa fees from $710 to $1,600 will significantly impact aspiring Indian students. While Australia's focus on sustainable education growth is commendable, this policy shift might strain the wallets of many potential students. The bar has also been raised for skilled migrants, with a higher income threshold for temporary skilled migration and shorter temporary graduate visas. These measures could discourage prospective learners and chip away at Australia's attractiveness as a premier destination for higher education and skilled workers. "Ideally, Australia could implement more balanced policies and support systems that address both affordability and quality while fostering diversity in its institutions. This would solidify Australia's competitive edge as a coveted study abroad destination for ambitious Indians," said Manisha Zaveri, Joint Manging Director, Career Mosaic.