Australia 'exploiting young people': How visa fee hike will impact Indians

Australia's visa fee hike decision poses a significant financial challenge for Indian students aspiring to study in Australia

"Financial privilege does not equal talent", said a student representative in Australia. The Albanese government’s decision to more than double the cost of student visa fees for international students has ignited fierce criticism and concerns about the future of its lucrative education sector. As of 1 July, the fee has surged from $710 to $1,600 (Rs 39,546 to Rs 89,118), sending shockwaves through the international education community.

The Albanese government defends the fee increase as a necessary step to generate additional revenue for educational initiatives. These initiatives include reducing graduate debt, providing financial support for apprentices, and implementing a comprehensive migration strategy.

 

Minister for Education Jason Clare stated, “International education is an incredibly important national asset and we need to ensure its integrity and quality.”

How student representatives reacted to the fee hike

Student representatives and industry leaders are alarmed about the potential repercussions. Yeganeh Soltanpour, National President of the Council of International Students Australia (CISA), criticised the fee hike for the financial burden it places on international students, many of whom already face high deposit costs. “The possibility of spending all that money only to face rejection is quite disheartening for many students,” Soltanpour remarked.

She added, "Financial privilege does not equal talent."

Phil Honeywood, CEO of the International Education Association of Australia (IEAA), also criticised the move, saying, “This will make Australia more than double the cost of other countries. This is exploiting young people.”

How does Australia compare to other countries?

The visa fee hike places Australia at a significant disadvantage compared to its competitors. Student visa fees in the United States are approximately $185 (Rs 15,442), in Canada $109.22 (Rs 9,117), in the United Kingdom $619 (Rs 51,674), and in New Zealand $226 (Rs 18,866).

Impact on Indian students

Saurabh Arora, Founder & CEO of University Living, highlighted the direct impact on the 170,000 Indian students expected to pursue higher education in Australia by 2025. “These changes will prompt international students to explore unconventional study destinations beyond the traditional four US, UK, Canada, and Australia,” Arora said.

Broader implications

* The doubling of the student visa fee in Australia raises the cost of studying there, potentially deterring Indian students.

* The requirement to apply from outside Australia adds complexity.

* Current students on temporary visas lose the ability to switch to student visas within the country.

* Stricter English language proficiency and higher savings requirements, along with a reduced maximum eligible age for certain visas, further complicate matters.

* Temporary graduates must now secure employer-sponsored visas or leave upon expiry, limiting their work opportunities.

* Frequent policy changes contribute to a perception of hostility and uncertainty.

Financial implications

The visa fee hike decision poses a significant financial challenge for Indian students aspiring to study in Australia. According to the University Living Indian Student Mobility Report 2023-24, a student is expected to spend an average of $51,000 on academics, accommodation, and other living expenses for the session 2023-24. The increase in visa fees, coupled with associated expenses such as tuition, accommodation, and living costs, will significantly raise the total expenditure for Indian students.

“While these changes may ensure that only serious students apply to Australia, it is crucial to consider the broader impact of such changes. International students are a vital part of Australia's economy and educational landscape. We hope the government has a well-thought-out strategy to balance these changes while continuing to attract and support international students,” Arora said.

Visa fees: Increased from A$710 to A$1,600.

Academics: Approximately $51,000 (including tuition).

Accommodation: Included in the total expenditure estimate.

Living expenses: Part of the overall costs, which could vary depending on the location and lifestyle.

Challenges for Indians already in Australia

Temporary graduate visa holders will now face challenges in securing employer-sponsored visas, thereby limiting their ability to gain work experience and affecting their career prospects.

Arora said, "The prohibition on continuously extending stays forces students to make quick decisions about their future, potentially impacting their career and educational goals."

What are the alternatives for Indian students?

Arora suggested that the changes will prompt students to explore unconventional study destinations like France, Germany, Spain, Ireland, Italy, Singapore, Dubai, Malta, and New Zealand. These countries offer streamlined visa processes, diverse academic programmes, and competitive living and tuition costs.

“For instance, France aims to host 30,000 Indian students by 2030, and Germany provides low or no tuition fees at many universities,” Arora explained.

What are the viable options?

In the United States, a student visa costs $185 (Rs 15,433), significantly lower than Australia's new fee. The US boasts numerous top-ranked universities and a diverse range of academic programmes. Graduates can benefit from the Optional Practical Training (OPT) programme, which permits international students to work for up to 12 months (24 months for STEM graduates) after completing their studies.

Canada presents another viable option with a student visa costing approximately $110 (Rs 9,178), making it more affordable compared to Australia. Meanwhile, the United Kingdom charges around $620 (Rs 51,732) for a student visa. Beyond affordability, the UK offers the Graduate Route, allowing international students to work for up to two years (three years for PhD graduates) after completing their studies. Renowned for its high-quality education, the UK hosts many prestigious universities that attract students worldwide.

These countries provide compelling alternatives with diverse educational opportunities and robust post-study work options, appealing to Indian students navigating the evolving landscape of international education.

Is there a silver lining?

Australia hosts over 600,000 international students, with Indians making up a significant proportion.

"The quality of education, combined with opportunities for scholarships and part-time work rights, contributes to its attractiveness.

Programmes like MATES, targeting Indian graduates, and changes in post-study work visa policies, ensure that Australia continues to be seen as a global education hub," said Madhur Gujar, CBO & co-founder, amber.

Ajay Sharma, founder of Abhinav Immigration Services, believes the new measures aim to ensure that only serious students apply to Australia. “This is not going to make much difference to serious candidates already willing to spend lakhs on education in Australia,” Sharma said.

He explained, "The Australian government wants only quality students to come in. They frequently found a large number of applications from India with fraudulent supporting documentation, so they put a stop to that with strict due diligence. They have introduced these policies to ensure that only serious students who wish to study in Australia come in and not those looking for a permanent residence visa."

Aarushi Jain, Partner at Cyril Amarchand Mangaldas, presents a different perspective on the new educational measures. She argues that while these changes may dampen some students' dreams of studying in Australia, they won't necessarily impede their pursuit of an Australian education. Jain points out that foreign universities, including those from Australia, are establishing campuses in India, thereby easing access to international education without the complications of visa issues.

“The new measures will dent some students' dreams of going to Australia, but not necessarily their dreams of obtaining an Australian education,” Jain said. “Foreign universities have been permitted to open campuses in GIFT City and other parts of India. Australian universities have been at the forefront of this movement.”

Last year, the University Grants Commission (UGC) unveiled draft norms to facilitate the “Setting Up and Operation of Campuses of Foreign Higher Educational Institutions in India.” This initiative aims to accommodate offshore campuses of some of the top globally ranked universities. According to the guidelines, these universities will have autonomy in deciding fee structures, administering admissions, and repatriating funds.

Australia’s Deakin and Wollongong universities are among the first to establish their offshore campuses in India’s Gujarat International Finance Tech (GIFT) City.

“Their presence on the ground will be a big boon for students who can access Australian education with ease without having to worry about visa or immigration-related issues,” Jain noted.