Australia: the visa becomes a financial filter

Andy Ellen

Senior Immigration ConsultantAitken PartnersView Profile

Australia's significant visa fee increases are reshaping the migration landscape, with students, graduates, and permanent residents facing substantially higher costs. This article examines the implications for migrants, international education, and Australia's global competitiveness.

Australia: the visa becomes a financial filter

Australia no longer limits itself to selecting migrants based on their qualifications, age, or proposed plans. It now also selects them—increasingly openly—based on their ability to pay. Significant fee increases that took effect on July 1 are transforming the visa from what was previously viewed as an administrative cost into an instrument of migration policy and a source of budget revenue.

The most dramatic increase concerns the Resident Return Visa, required for certain permanent

residents wishing to retain their right to return to Australia: its price is rising from 490 to 1,475

Australian dollars, an increase of 201%. The Bridging Visa B—which allows, among other things,

a person awaiting an immigration decision to temporarily leave the country and return— is jumping from 190 to 575 dollars, an increase of nearly 203%.

A migration tax in all but name

The trajectory of the temporary graduate visa is even more revealing. Its cost stood at $2,300 in early 2026. It doubled in March to reach $4,600, before climbing to $5,750 this July. Thus, over six months, the increase amounts to 150%. For a recent graduate who has already paid high university fees and covered the cost of living in Australia, this sum now represents the price of entry into the Australian labor market—with no guarantee that the application will be approved.

As for the student visa, the fee has risen from $710 in 2024 to $2,500 in July 2026. This represents

a cumulative increase of 252% over two years. Since these fees are generally non-refundable, the applicant pays not to obtain a visa, but simply to have their application reviewed.

The Australian Department of Home Affairs website confirms, moreover, that fees are subject to change and that the applicable amount is the one in effect at the time the application is received.

Officially, Canberra seeks to better manage migration flows, limit abuses, and make the system international of more sustainable education. But the scale of the increases far exceeds inflation and the likely cost of processing applications. The visa thus becomes a form of tax targeting individuals who have few alternatives.

The measure is expected to generate around 764 million Australian dollars during the financial

year. Yet, it affects a sector that generated approximately 53.6 billion dollars for the Australian economy the previous year. International education is one of the country’s key exports and supports universities, housing, commerce, transport, and thousands of jobs.

The government’s calculation therefore entails a risk: earning more on each application while receiving fewer applications. The wealthiest students will be able to absorb the extra cost. Others—particularly those from Africa, South Asia, or small island states like Mauritius—might choose the United Kingdom, New Zealand, Canada, or the United States.

A value that is increasingly open to question

The crucial question is not merely one of price, but of what that price actually delivers in return. A $2,500 student visa grants access to Australian education, yet offers no guarantee of employment or long-term settlement. The $5,750 graduate visa allows for a temporary stay after completing studies, within an environment where rules, durations of stay, and eligibility criteria are still subject to change.

For permanent residents, the logic is even more questionable. These people live, generally work and pay their taxes in Australia. Charging them $1,475 to preserve or restore a right of return creates the impression that the authorities are turning an existing status into a paid service.

These increases will likely reduce the number of applications and boost short-term revenue. However, they also risk altering the country’s international image. Australia—long portrayed as a land of study, skills, and opportunity—could come to be seen as an expensive, unpredictable, and less welcoming destination.

Mauritian families at risk

The true value of a visa is not, therefore, measured solely by its cost. It rests on the stability of the rules, the opportunities offered, and the trust placed in the host country. Yet, by charging ever-higher prices for an increasingly uncertain promise, Canberra risks devaluing the very thing it seeks to sell.

For Mauritian families who must convert their income into Australian dollars, the impact can be particularly heavy. The rise in costs comes at a time when many parents are already dedicating years of savings to funding their children's education.

Andy Ellen, a senior immigration consultant with Aitken Partners-Kabo Lawyers in Melbourne, warns against advice provided by unregistered intermediaries. During two visits to Mauritius in 2019, he noted that some agents were providing information that was "inaccurate" or "outdated," or that was likely to exploit the trust of vulnerable students.

In some cases, poor course choices or incorrect information regarding opportunities to work and stay in Australia reportedly cost families years of savings. Students subsequently returned home to Mauritius, disappointed and in debt.

With the recent fee increases, Andy Ellen believes it is more important than ever to seek up-to-date professional advice before committing to an Australian study program. Students should

verify the institution’s accreditation, the relevance of the course, visa requirements, and genuine career prospects after graduation.

Universities fear a loss of competitiveness

The Group of Eight, representing eight of Australia’s leading universities, welcomes the government's decision to maintain the projected national cap for new international student enrollments in 2027 at 295,000.

The organization believes that this decision recognizes the contribution of international students to the economy, research, productivity, and the development of a skilled workforce. However, it warns that this positive signal risks being undermined by the government’s new pricing policy. A further 25% increase could make Australia less attractive to top students, particularly those from the new markets where universities are seeking to diversify their recruitment.

A political measure that does not address the underlying problems

The sector is already showing signs of a slowdown. According to the Australian government, the number of new enrollments in 2026 is 8% lower than the figure recorded during the same period in 2025 and 13% below 2019 levels.

However, international education generates over 50 billion Australian dollars annually and ranks among the country’s leading service exports. Universities and the business community therefore fear that the pursuit of immediate revenue could undermine—in the long term—a sector vital to the Australian economy.

According to Abul Rizvi, Australia’s immigration system faces three major challenges:

Respect for net migration targets, the accumulation of requests for spousal visas, and the rising number of rejected asylum seekers—particularly those from certain countries in Asia and the Middle East.

These tensions are fueling domestic political debate against a backdrop of the growing influence of One Nation, the far-right party led by Pauline Hanson, which advocates for a much more restrictive immigration policy and specifically targets certain categories of foreigners, notably Muslim migrants.

Yet, according to him, the fee increase does not directly address any of these problems. Instead, it imposes an additional burden on migrants and students who already contribute to the economy through tuition fees, taxes, consumption, housing, and work.

In the current Australian political climate, the government appears to believe that raising fees for foreigners will spark less domestic backlash—and less anti-foreigner sentiment—than a hike directly affecting Australian citizens.

The Bondi Beach attack in Sydney has somewhat altered Australians' perceptions of certain types of migrants. Yet, the gamble remains risky. For students and families, these fees are not merely an administrative adjustment; they represent thousands of dollars that must be paid before even knowing if a visa will be granted. For Australia, these costs could hinder the recruitment of the skilled workers and international students upon whom its economy continues to rely.