The Australian Government expects revenue of $185 million in 2025-26 following the increase in student visa application charges it imposed as part of its May election commitments.
In the Mid-Year Economic and Fiscal Outlook (MYEFO) 2025–26, released yesterday by Treasurer Jim Chalmers and Finance Minister Katy Gallagher, the increase in Visa Application Charge (VAC) for student visas is one of the measures the Government attributes to $7.2 billion of budget improvements.
The student VAC measure is estimated to increase receipts by $740 million over the four financial years to 2028-29.
The measure decreases GST payments to the states and territories by $20 million over five years from 2024-25 (visa application charges are not subject to GST, the measure increases Commonwealth receipts but marginally reduces GST payments to states and territories under the GST distribution arrangements)
The Government increased the student visa application charge to $2,000 on 1 July 2025. Since then, the international education sector has been advocating for a reduction in the charge for short-term student visa applicants, particularly those in the ELICOS sector and learning-abroad programs.
A copy of MYEFO is available here.
