The Australian government’s decision earlier in July 2024 to increase visa fees for international students is likely to risk losing student demand for enrollment in Australian universities.

An IDP survey of over 1,400 students found that over one in three took visa costs into account when choosing a study destination. After students were told that a massive increase in the visa fee would come into effect, the survey increased to about three in five, VisaGuide.World reports.

Philippines & Malaysia Students Might Not Consider Australia as a Study Destination Anymore

Of the 500 respondents who had yet to apply for university places, 22 percent said an increase in the visa fee would force them to look elsewhere. Another 41 percent said they “might” revisit Australia.

According to the survey, 20 percent of respondents of Chinese and Indian descent said this would rule out Australia as a study destination. On the other hand, such an opinion rose to almost 40 percent among prospective students from the Philippines and Malaysia, while 87 percent of respondents from Vietnam said they might reconsider.

As for future students, they said they would prefer to have more information about their visa rejection or to have the option to apply part of the visa fee to a future application. In this regard, over 70 percent of future visa applicants would apply again – showing their determination to study at Australian universities.

Students Visa Fee Hike Makes Australia the Most Expensive Study Destination

On July 1, Australian authorities announced the visa application fee would rise immediately from A$710 to A$1,600 (£362 to £817), making it the most expensive in the world.

According to IDP tracking data, the increase coincided with a decline in student demand sharing in Australia, with market share falling by two percentage points.

New Zealand-bound students are more price-sensitive than Australia-bound students, with 50 percent claiming the cost of a student visa would influence their decision. Australia’s policy change will benefit New Zealand, especially with students from the Philippines and Pakistan. Moreover, New Zealand has not seen an upward demand shift since the visa announcement this July.

Whilst the majority of Australia-bound students appear uninfluenced to switch to New Zealand due to cost differences, this could change. Some markets will vote with their feet quickly if NZ harnesses this opportunity.

Recently, Australia has faced visa delays and refusals, which have caused problems with Australian universities’ courses and financial planning.

The estimated that the University of Technology Sydney (UTS) would have lost more than A$100m (£52m) in tuition fees from students who would have been able to enrol this year.