The ruling Labor Party of Australia has announced plans to raise visa fees for international students to help fund its election promises.
If re-elected, Labor will increase the student visa fee from $1,600 to $2,000 starting 1st of July 2025.
Australia’s conservative opposition has already pledged to raise the visa fee to a minimum of A$2,500, and A$5,000 for applicants to the country’s top universities .
Election costings released by the parties show how they intend to finance their campaign promises.
To pressure the Coalition into releasing its full costings, Labor unveiled the estimated costs of its commitments since the March budget.
Treasurer Jim Chalmers and Finance Minister Katy Gallagher announced an additional $1 billion in savings at a joint press conference.
Chalmers stated that the election campaign would end with the budget in a stronger position than when it started.
Labor’s major savings include the increased visa fees, expected to generate $760 million over the next few years.
Applicants from Pacific Island nations and Timor-Leste will be exempt from the visa fee hike.
An additional $6.4 billion in savings will come from cuts to spending on consultants, contractors, travel, hospitality, and property.
Gallagher emphasized that these savings would not affect any services provided by the Australian Public Service.
As a result of these measures, the cumulative budget deficit is expected to fall from $151.6 billion to $150.5 billion.
The savings will help fund Labor’s $1,000 instant tax deduction for work expenses, projected to cost $2.4 billion.
Gallagher said Labor had successfully redirected funds wasted in previous budgets towards cost-of-living measures, healthcare, housing, tax cuts, and reducing student debt.
