Australian Education Bodies Urge Government To Halve AUD 2000 Student Visa Fee

Opening Thoughts

Australia increased its Student visa application charge to AUD 2000 on 1 July 2025, making it the highest among major English-speaking destinations. Peak education bodies are now urging the government to halve the fee to protect short programs and English language providers. For Indian students planning 2026 intakes, this news affects budgeting, timelines, and how you present proof of funds. Lorien Finance as a trusted education financing aggregator with global bank and NBFC partners, explains the change, the possible outcomes, and what you should do next.

What exactly changed in 2025

• From 1 July 2025, the Student visa VAC for subclass 500 rose from AUD 1600 to AUD 2000 for the primary applicant. Check out Study Australia for more info.
• The Department of Home Affairs page lists the current cost as from AUD 2000, with limited exemptions like certain Pacific pathways. Check out  Immigration and citizenship Website for more info.
• This follows the July 2024 jump from AUD 710 to AUD 1600, a 125 percent rise.

Quick View: Fee evolution

• July 2024: AUD 710 → AUD 1600
• July 2025: AUD 1600 → AUD 2000
  These increases created the world’s highest student visa application charge among key study abroad destinations.

Who is Asking for Student Visa Fee Cut and Why

• Australia’s peak education bodies, including IEAA, English Australia, and ITECA, have publicly urged the government to reduce the non-refundable AUD 2000 fee, arguing it is harming demand for short-term and English-language pathways.
• Trade publications and national press report growing pressure to halve the charge to restore competitiveness and support struggling ELICOS providers.
• Indian media coverage echoes the call and highlights the risk to Australia’s attractiveness for international students.

Impact on Indian students

• Upfront cost: AUD 2000 is about ₹1.16 lakh at recent rates, an amount that now needs to be planned alongside tuition deposits, OSHC, and living funds.
• Short courses hit hardest: English-language or vocational pathways become pricier relative to competitors, potentially shifting students toward longer degrees or other countries if the fee persists.
• Budget planning: Higher application sunk cost means stronger emphasis on complete documentation and readiness to avoid refusals, since the fee is non-refundable.

What Could Happen Next

• Scenario A: Fee cut or partial relief
  The government could accept sector recommendations and announce a reduction or targeted relief for short programs, improving affordability and demand. This possibility is actively being lobbied for.
• Scenario B: Status quo for now
  If the fee stays at AUD 2000, providers may ramp up scholarships or bundled offers to offset the perception of higher entry costs, while students tighten budgeting. This inference aligns with current commentary but is not an official policy signal.

Action plan for applicants

• Do the math first: Add visa fee, OSHC, and initial housing to your pre-arrival budget so you know the real cash requirement.
• Strengthen your file: High-quality SOP, evidence of genuine student intent, stable finances, and test scores reduce refusal risk on a non-refundable fee.
• Time your application: University offers, COE issuance, and loan sanction should be sequenced so you can lodge as soon as you meet eligibility.
• Keep an eye on updates: Any fee revision would be announced on official portals and reputable education media. We will track and reflect changes here.

How Lorien Finance helps

Lorien Finance compares 18+ lenders to help Indian students fund tuition and living costs smoothly. With one application you get expert guidance, lender-matched documentation support, and quick loan sanction and disbursal, provided with complete verified documentation. This reduces last-minute stress and strengthens your financial proof for the visa stage.

Compliance note: Loan terms are subject to bank or NBFC policies. T & C apply.

FAQs

What is the current Australia student visa fee for subclass 500?
AUD 2000 for the primary applicant from 1 July 2025, with limited exemptions as outlined by Home Affairs. 

Did the fee really double last year and rise again in 2025?
Yes. It rose from AUD 710 to 1600 in July 2024, then to 2000 in July 2025. 

Who is asking for a reduction and by how much?
Peak bodies like IEAA, English Australia, and ITECA are urging the government to halve the AUD 2000 fee, especially to protect short courses. 

Is the fee refundable if my visa is refused?
The application charge is non-refundable, so quality documentation is critical before you lodge. 

How should Indian students budget for this change?
Include the visa fee, OSHC, airfare, and initial housing in your pre-arrival plan. Consider an education loan to cover tuition and living funds, then lodge when your paperwork is complete.

Where can I find official updates?
Check Study Australia and Home Affairs for any fee or policy changes.