Australia’s Student Visa Shake-Up: What to Expect after the Election

As Australia heads toward its federal election on May 3, 2025, international students and the education sector are facing a wave of uncertainty. Both major political parties have unveiled plans that could reshape the landscape for anyone hoping to study-and stay-down under.

Here’s a breakdown of what’s on the table, what it means for students, and why the sector is worried.

What Are the Parties Proposing?

• Coalition (Liberal/National):

  • Rapid Review of the 485 Visa: The Temporary Graduate Visa (subclass 485), which lets international graduates work in Australia after their studies, is under scrutiny. The Coalition claims it’s being “misused” as a backdoor to jobs and permanent residency, and if elected, they promise a swift review. Likely changes could include shorter visa durations, stricter eligibility, and limits on partners’ work rights.

  • Student Visa Fee Hikes: Proposes a $5,000 fee for students applying to Australia’s top universities (Group of Eight) and $2,500 for others-up from the current $1,600.

  • Cap on Student Arrivals: Plans to limit new international student arrivals to 240,000 per year.

• Labor (Current Government):

  • Visa Fee Increase: Labor also plans to raise the student visa fee, but to $2,000. This follows a 125% increase last year, which already made Australia’s student visas the most expensive in the world.

  • Open to Fee Reductions for Short Courses: Labor has signaled willingness to discuss a 50% discount for students enrolling in courses shorter than 12 months, especially English language (ELICOS) and study abroad programs.

Why Is This a Big Deal?

1. Cost Barriers Are Rising-Fast

• Australia’s student visa fees are now far higher than those in Canada, the US, or the UK. For example, a Canadian study permit costs about AUD$172, and a US F-1 visa is around AUD$299, compared to Australia’s current AUD$1,600 (soon to be $2,000 or more).

• The 2024 fee hike caused a 50% drop in English language course (ELICOS) enrolments, showing just how sensitive students are to price changes.

2. Uncertainty Over Post-Study Work Rights

• The 485 visa is a major draw for international students, offering a chance to gain Australian work experience and, potentially, a pathway to permanent residency.

• The Coalition’s review could mean shorter visas, fewer eligible graduates, and less certainty about staying on after study. This is especially worrying for students from South Asia and other regions where migration outcomes are a key motivator.

  
  

3. Sector Fears and Criticisms

• Phil Honeywood, CEO of the International Education Association of Australia (IEAA), has called the Coalition’s campaign “anti-international students” and warned that policy changes could be pre-determined to restrict access and reduce benefits for students.

• The ELICOS sector (English language schools) has been particularly hard hit, with leaders describing the fee hikes as “crushing” and warning that further increases would make Australia uncompetitive for short courses.

4. Australia’s Reputation at Stake

• Frequent changes and rising costs risk damaging Australia’s image as a welcoming, stable destination for international students. Stakeholders argue that consistent, transparent policies are needed to maintain trust and competitiveness.

What Do Students and Educators Want?

• Lower Fees for Short Courses: There’s strong support for reducing visa fees for courses under 12 months, especially English language and study abroad programs.

• Policy Stability: Experts like Andrew Norton (Monash Business School) argue that steady, incremental policy changes are better than drastic, reactionary shifts. Sudden changes can disrupt student plans and harm Australia’s long-term appeal.

• Genuine Stakeholder Engagement: The sector wants real consultation in any review of the 485 visa, with a focus on aligning graduate skills with labor market needs and ensuring transparent migration outcomes.

The Bottom Line

Australia’s international education sector is at a crossroads. With both major parties proposing higher visa fees and tighter controls, the risk is that prospective students will look elsewhere-especially as other countries offer cheaper, more predictable options. For many, the dream of studying in Australia is about more than just a degree; it’s about opportunity, experience, and a possible future.

As the election approaches, the hope is that policymakers will listen to students and educators, keep Australia’s doors open, and remember that international education is a two-way street-one that benefits not just students, but the whole country.