The government has implemented a sudden and significant visa fee increase of 125 per cent, raising the cost of an education visa from AUD$710 to AUD$1600.
The Koala contacted the sector’s overarching lead peak body for comment. This is what Phil Honeywood, CEO of the International Education Association of Australia, had to say:
“This is an outrageous impost on a sector which is already facing death by a thousand cuts. These non-refundable visa application fees will place Australia at more than double the cost of our closest competitor countries. The fact that the additional revenue is going to pay for its Accord implementation will provide no benefit to the overseas students who will have to stump up. This sends all the wrong messages about Australia as a welcoming, supportive study destination. In practice, we will be robbing Ranjit to pay for Richard. This is exploitation of overseas young people at its worst!”
Correct he is.
Death by a thousand cuts is a metaphor The Koala has heard quite a lot this year and this announcement adds to them in a significant way.
Ravi Lochan Singh, CEO Global Reach adds “Ever since Grattan Institute recommended an increase to $2500, it was known that at some point visa fee will be increased and media had indicated that the fee will be around $1500. However when the annual budget in May skipped mentioning it, the general feeling was that student visa fee won’t increase in July but sometime later. I believe this was indicated in an interview to your masthead too by IEAA too. However today we see a 125% increase. Once again by stealth. The reasoning for this is totally misplaced. It simply will create more hardship and makes Australia less welcoming to international students without actually reducing NOM. I wonder who advised the advisors(Grattan Institute) that increasing visa fee will reduce the number of students. Indian and Nepalese offshore students are currently faced with significant visa refusals (40%) and we have also seen that refused visas on reapplication(when allowed by the institution) do get an approval too. However such students will now think twice before reapplying. This is unfair since unlike onshore visa applicants, offshore applicants have no option to appeal a visa outcome.”
Again, a very astute synopsis.
Alec Webb, CEO of the Regional Universities Network, says, “Like many, this announcement was a surprise, noting it has been on the table and then taken off the table around budget time. The RUN Universities are disappointed that the visa fees have increased significantly, making alternative destinations more attractive and Australia less so. This visa fee hike, combined with ongoing issues around visa prioritisation and assessment inconsistencies, puts the sector in a more difficult position.
Stealth announcement: Government-sector relations at an all-time low
In what appears to be part of the government playbook in international education reforms, announcements are made with little to no lead time for implementation or notice to allow the sector to prepare.
This is no different.
Most people the Koala has spoken to were blindsided this morning when the announcement was made, with one learned reader commenting, “There was a lot of disgust on the chat this morning with the 125% increase.” The Koala understands, however, that a few senior sector representatives were given a heads-up on Sunday night (last night), and it’s understood that strong words were had with that Minister’s Office when they were told it was a fait accompli.
It is fair to say that the sector, if it hadn’t already been strained by how this government goes about its business, is now.
Visa processing and risk: put it all on black
With the fee increase to $1600 the potential loss for a student against a backdrop of indiscriminate visa assessments is now worrying many. While the loss of $710 dollars for a random visa refusal (see TKN 15/5/24 Inconsistent Visa Assessments Continue to Destabilise the Sector) the loss of $1600 becomes unconscionable.
It’s a gamble.
The newly appointed Executive Director of the ATN Universities picks up on this.
Dr Ant Bagshaw saying “Increasing the fees for international student visas is an unhelpful barrier which will dissuade students from enjoying the amazing benefits of an Australian education. More importantly, at ATN Universities we’re concerned about unwarranted levels of visa rejections. Students are putting their savings on the line with too little certainty about whether they’ll get a visa. As the Australian Government progresses its international student policies, it should focus on certainty for students as well as sustainability for universities.
He is absolutely right.
The visa system needs certainty, and it has anything but that presently.
Australia’s Competitiveness
Universities Australia Chief Executive Officer, Mr Luke Sheehy states “Australia has worked hard to establish itself as a leading provider of international education and the Government’s continued policy pressure on the sector puts our position of strength at risk.
“This is not good for our economy or our universities, both of which rely heavily on international student fees, or the communities who benefit from the skills, knowledge and culture of the students who choose to study in Australia.” He says
This is a point now being felt across the sector. Australia’s international education sector and a 48b export sector is now clearly under threat.
ISEAA Chair, Melanie Macfarlane says “ISEAA supports the ideal behind the Migration Strategy but does not support the 125% increase in fees for the student visa. The practical reality is that we will create an elite class of students who will be mostly from China.”
This point resonates with the Koala. While domestic education policy is clearly focused on access and equity and increasing participation, especially among communities with traditionally low participation rates, McFarlane’s point fairly calls out the government for policy moves towards an exclusive, high-priced, top-of-the-town, elite international education sector.
She rightly points out diversification of onshore students will be hurt by this move.
Just clumsy
In what may appear to be a rushed out-the-door announcement, the Koala points to the release itself. Quotes attributable to each of the ministers can be seen here:
Quotes attributable to Minister for Education, Jason Clare:
“International education is an incredibly important national asset and we need to ensure its integrity and quality.
“These changes will strengthen integrity in the international education system and help to fund important reforms recommended by the Universities Accord, including making HECS fairer, paid prac and expanding FEE-Free Uni Ready courses.”
Quotes attributable to Minister for Home Affairs and Cyber Security, Clare O’Neil:
“When we came to government we inherited a migration system that was broken and dysfunctional, and an international education system which was being compromised by rorts and exploitation.
“Reform was essential, after a decade of neglect under the former government.
“This sector has the power to drive growth and opportunity for our country, but to get there, we’ve got to work with quality providers to clean it up.
“The changes coming into force today will help restore integrity to our international education system, and create a migration system which is fairer, smaller and better able to deliver for Australia.”
Quotes attributable to Minister for Immigration, Citizenship and Multicultural Affairs, Andrew Giles:
“Our reforms will help vulnerable workers speak up, while we crack down on employers doing the wrong thing.
“We’re getting on with the job of delivering higher wages for skilled migrants and Australians after a decade of the former Liberal Government deliberately keeping wages low.”
Maybe the Koala is missing something, but it doesn’t quite understand how any of these quotes relate to a hike in visa fees. Is a higher visa price somehow linked to integrity (which seems like a buzzword in Canberra)? And how a visa fee hike relates to vulnerable workers speaking up, well, maybe the less said, the better.
