Federal Government pockets windfall from graduate visa fees, with WA workforce pipeline to take major hit

WA could face a shortage of essential workers as the Federal Government digs deeper into the pockets of international students who are hoping to transition from study to the Australian workforce. International graduates across Australia are facing an extra financial burden as the Temporary Graduate visa fee has now doubled, a decision that has sparked widespread backlash across the nation. The Department of Home Affairs increased the 18-month Temporary Graduate visa fee from $2300 to $4600 from March 1, leaving the nation’s more than 833,000 international students blind-sided and uncertain of their future in Australia. Figures from the Department from February showed a record 2.32 million temporary visa holders were in the country at the end of last year. New data this year showed that in 2025, WA hosted 88,830 international students, a 67.9 per cent increase since 2019. University student representatives across WA have strongly advocated against the unanticipated increase. Curtin University Guild president Dylan Storer said the increase contradicts the country’s need for skilled workers. “At the moment international graduates are ready to contribute to our workforce and communities, the Government has chosen to make it harder, not easier. That is deeply unfair,” he said. “If Australia values the skills and talent of international students, our policies must reflect that with fairness and consultation.” Murdoch president of the Student International Association Saieesivasoriaa Sivagurunathan said many students were caught completely off guard. “It was blindsided. No international student was consulted, no relevant international body was consulted about this price increase,” he said. He said the financial burden was hitting students already dealing with rising living costs. “International students also have to pay for rent and buy groceries and fuel, so they’ve got so many different hurdles to overcome,” Mr Sivagurunathan said. “I would say disappointment is a word that is very common among international students. A lot of them have gone to the extent of saying that they don’t want to stay in Australia because they can’t afford to.” Mr Sivagurunathan said the policy shift also inflicted an emotional toll for students adjusting to life in a new country. “It was definitely a slap in the face for a lot of international students that are actually coming here trying to boost the economy for Australia,” he said. UWA Guild president Oliver Barrett said the decision was part of a broader cultural issue. “I find it incredibly concerning to see a decision made by the government that reinforces the institutional normalisation of treating international students as an opportunity to make money rather than the real people that they are,” he said. “Let me be clear, I’m not calling the government racist or saying that visa fees should never increase; instead, I put it to you that the decision made to increase the visa fees to double them overnight with no warning has led to alarming consequences and a very real human impact on our international students.” UWA’s Postgraduate Students Association president Jay Williams said graduates would have to pay the higher fee while still under restricted working conditions. International students on Student Visas are allowed to work only a maximum of 48 hours a fortnight. “Doubling the cost of the 485 visa does not improve the system, it pulls the ladder up, it sends a message that after everything students have invested . . . their continued participation is conditional on whether they can absorb a sudden and significant financial shock,” he said. Mr Williams said the change risked pushing away future engineers, researchers and health professionals that WA needed in its workforce. “Fewer students, less economic activity and less talent staying in our workforce,” he said. State Tertiary Education Minister Tony Buti said he was aware of the concerns around the sudden increase and would raise them with the Federal Government as international education was a critical pipeline for skilled migration. The Department of Home Affairs has defended the increase, stating visa application charges are “periodically reviewed” and maintained that Australia remains an attractive destination for international students. When The West Australian asked questions around the timing, lack of consultation and impact on students, the Department didn’t answer. In March, Dr Buti said international education added about $4.2 billion to the WA economy, making it the State’s largest service export. “As one of the sectors most severely impacted by COVID-19, WA experienced a strong rebound in international student arrivals when global travel resumed following the pandemic,” he said in March. “The WA Government implemented a series of programs to support the recovery of student numbers to the State and support our international education sector.” City of Perth councillor Lisa Ma led a successful Notice of Motion on Tuesday night calling for formal advocacy against the increase. The motion urged the City to push for a reversal of the fee hike and escalate concerns through state and national local government bodies, including WALGA and the Australian Local Government Association. The city administration noted each international student adds an estimated $40,000 per annum to the city economy. Councillor Ma pointed to the broader economic implications, noting international students contribute an estimated $40,000 annually to the local economy and play a key role in sustaining Perth’s CBD and future workforce. “International students contribute greatly to Australia’s communities, not only economically, but also socially, culturally and academically,” Cr Ma said. For Tahsin Anowar, a second-year international student and International Student Committee president at Curtin University, the decision has caused widespread concern across the student community, particularly due to the lack of warning. “It just came from nowhere, honestly,” he said. The fee increase, which effectively doubles previous costs, comes on top of already high tuition fees for international students. Many pay between $17,000 and $21,000 per semester, making it difficult to manage expenses even before the change. “Doubling the fees has made life much harder,” Mr Anowar said. For those relying on financial support from overseas, the impact is even greater. Currency differences and rising living costs in Australia add further pressure. “A lot of people have to bring money from their home country,” he explained, noting that some students’ families can only support them for a limited time. The sudden nature of the increase has left many feeling disheartened. “If they had told us earlier, we could have planned financially,” he said. “It feels unfair.” Students nearing graduation are particularly frustrated as the change comes at a time when many are preparing to enter the workforce and contribute to Australian society. “When it’s time to give back to Australia, suddenly the visa fee increases,” Mr Anowar said.