Australia May Cut Student Visa Fees for Short-Term Study Programs Amid Sector Struggles
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Australia’s international education sector is pushing for urgent reforms as the country’s recently increased student visa fee takes a toll on short-term study programs. Education leaders are lobbying the government to lower the $2,000 visa application fee introduced in July 2025 for specific student cohorts, including those enrolled in ELICOS, non-award, and study abroad programs under 12 months.
Phil Honeywood, CEO of the International Education Association of Australia (IEAA), revealed during a pre-panel discussion ahead of The PIE Live Asia Pacific (29–30 July) that a potential reduction to $1,000 is on the table. If approved, the change could come into effect by 1 January 2026.
The high fee follows a 125% hike just a year prior, when the cost rose from $710 to $1,600, and then again to $2,000. Honeywood warned that the increase is “killing” Australia’s ELICOS sector, which has already seen multiple closures, including IH Sydney, PICE, and Lonsdale Institute.
The financial strain extends beyond ELICOS. Felix Pirie, CEO of the Independent Tertiary Education Council Australia (ITECA), said vocational and skills training providers are also suffering. He noted that feedback from students, agents, and institutions especially in Southeast Asia and South America indicates that the added cost is discouraging enrolment altogether.
Despite the government downplaying the rise as a $400 increase, Pirie highlighted that in several source markets, that amount exceeds a full month’s wage, making it a significant and non-refundable risk for many students.
Australia’s visa fee spike is also affecting outbound mobility and global academic ties. Both the Innovative Research Universities (IRU) and the Regional Universities Network (RUN) representing 14 universities, released a joint statement calling for immediate reductions in visa fees for students undertaking short-term programs. Partner universities abroad are reportedly redirecting exchange students to more affordable destinations, narrowing international opportunities for Australian students in return.
As the country seeks to maintain its global standing in education, Australia’s policymakers face growing pressure to address the financial barriers deterring short-term international students.
Source: THE PIE NEWS
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