Graduate Visa Price Increase 

International students were blindsided earlier in March when the cost of graduate visas doubled overnight without warning.

The application fee for the Temporary Graduate Visa (subclass 485) increased from AUD$2,300 to AUD$4,600. This visa allows international students who have gained their qualifications in Australia to remain in the country for up to three years to live, work and study.

This significant fee increase hasn’t been well received by international students, mainly saying they feel like ‘cash cows’ being used to boost Australia’s bottom line. The fee increase will also affect secondary applicants (partners and dependants) while students from Pacific countries and Timor Leste are exempt from the latest price rise.

International Education Association of Australia CEO Phil Honeywood told ABC News that the price increase was unfair and would deter future students from choosing to study in Australia. He went on to say, ‘Australia is really getting a reputation for having pulled the welcome mat from underneath international students.’ ^[1]

On the other hand, a Department of Home Affairs spokesperson said that the Department didn’t feel the price increase would be a deterrent to future study in Australia.

‘Australia has a well-earned reputation for its world-class education offerings and the attractiveness of the Australian lifestyle. The VAC increase will unlikely be a barrier to those wishing to remain in Australia after graduation.’ — Department of Home Affairs spokesperson. ^[2]

The National Union of Students (NUS) launched a petition urging the federal government to reverse the fee increase which they labelled as ‘exploitative’.

There was also criticism that the government made this increase only two weeks before 15 March when the student visas of many international students who graduated in December 2025 would expire.

Education is Australia’s fourth largest export behind coal, iron ore and natural gas. International students contributed AUD$50 billion to the Australian economy in the financial year ending 2025, which highlights their valuable contribution to Australia’s economy.

A Quick Calculation

At the end of the financial year ending 30 June 2025, there were over 225,000 subclass 485 visa holders in Australia. In the same financial year, there were approximately 83,000 subclass 485 visas granted. If those same numbers are replicated each year, the Government stands to make an additional AUD$190,900,000 per year.

These numbers support the perception that the increased student visa fees are a grab for cash from the Australian Government. The Australian Government maintains that the fee increase was introduced to deter non-genuine applicants.

If Not Australia, Then Where?

With student visa fees increasing, it’s likely that international students will seek alternatives to studying in Australia.

One of the top alternatives to Australia for study is Canada. A Post-Graduation Work Permit, which is similar to the Australian subclass 485 visa, will cost applicants CAD$255 (approx. AUD$264). The lower visa cost combined with lower living expenses could see international students consider Canada in the future.

Other alternatives for international study include New Zealand, which offers a high-quality education system similar to Australia but on a smaller scale, and the UK and United States, which are known for their prestigious and high-ranking universities.

The Potential Consequences of Increasing Graduate Visa Fees

While the main consequence of raising graduate student visa application fees is potentially losing international students to other countries, there are other downfalls.

There are concerns that the increase in 485 graduate visa fees could result in international students who would have studied majors in high-demand fields such as allied health and STEM not choosing Australia for their education. This in turn could result in skills shortages as the talent pool available to employers is significantly reduced.

Employers who use the 485 visa as a ‘probation period’ to transition international students into skilled employer visas such as the subclass 482 visa may experience disruptions to this pipeline as some graduates may struggle to pay the upfront fee.

The Subclass 485 visa fee increase has far-reaching implications, with international students facing immediate financial pressure and employers likely to see smaller talent pools over time.

To learn more about the application fee increase for graduate visas or any other aspect of immigration, contact the team of experienced registered migration agents at Visa Solutions Australia.