Agents react: will higher visa fees deter students from choosing NZ and Australia?

Some agents are already seeing a dampening in interest, while others claim there are bigger deterrents such as visa refusal rates and wait times.

In the New Zealand government’s reasoning for the visa fee increases across almost all categories, immigration minister Erica Stanford said that New Zealand’s charges remain relatively low compared to other popular destinations such as Australia and the UK.

Bindu Chopra, principal consultant at TC Global, said that since destinations such as the UK and Australia have also seen increases – including Australia’s visa fee hike from AUD$710 to AUD$1,600 in July – New Zealand’s recent changes won’t sway students away.

From October 1, student visa fees for those applying to New Zealand will rise to NZD$750 for those coming from non-Pacific countries, while post-study work visas fees will increase from NZD$700 to NZD$1,670.

“The visa fees don’t really make much difference,” said Chopra, which she said is true about most destinations – apart from the UK with fees she branded “ridiculous” when coupled with an increase to the immigration health surcharge.

“What really affects student movement is jobs, not visa fees,” she continued.

Chopra believes that despite the increased costs, an investment in a New Zealand education is worth it for many students.

“I have said for the last twenty years that New Zealand has some of the best universities in the world. As a student destination, this should be first on the list but because it’s a much smaller country, it’s overshadowed by Australia, that’s where the problem is.”

Although the impact of Australia’s doubling of student visa fees remains to be seen, Chopra said, at the moment, student interest in the destination remains strong, although issues surrounding visa refusals remain, as well as uncertainty around the country’s cap on student enrolments.

I have said for the last twenty years that New Zealand has some of the best universities in the world

Bindu Chopra, TC Global

There’s a lack of respect to agents and students from the Department of Home Affairs when it comes to visa refusals, she said, and coupled with uncertainty regarding a cap on international enrolments, agents are being put in a tricky spot, without adequate information to inform their students.

Although wait times for New Zealand student visas can be lengthy – two or three months according to Chopra – the refusals are fair and predictable, compared to its neighbour.

“Surprisingly, Australia is still popular. I’m taken aback by that, to be honest, but Australia is moving up,” Chopra told The PIE News.

However, other agents are reporting a “dampening of interest” in Australia since the increased fees, including Shayaz Khan, CEO, BlueSky Immigration and Student Consultancy Services, who said that students and skilled workers are weighing up their options and considering alternative destinations “where they feel more valued and less financially burdened”.

“While higher costs might be expected in today’s global landscape, these sharp increases could lead to a decline in the number of international students and skilled workers choosing these destinations,” said Khan.

“It’s essential for governments to balance fiscal needs with the long-term benefits of attracting and retaining global talent.”

IDP Education recently released results from a survey of 1,408 global students to assess what is important to students considering embarking on an education in each destination. The survey took place before New Zealand and Australia officially announced hikes in visa fees, but asked students how potential increases in visa fees would impact their choices.

It found that students bound for New Zealand are more price-sensitive than their counterparts with sights set on Australia, with 50% claiming the cost of a visa would influence their decision.

“Although New Zealand’s total visa fees remain lower than Australia’s, the sticker shock of this significant hike may negatively impact numbers as early as the 2025 intake,” Devina Sivagurunathan, executive director of MABECS Global, told The PIE.

“This change adds to the challenge New Zealand institutions face, as they already compete with the strong presence of Australian branch campuses in Malaysia.

“However, the effects of the fee increase might not hold in the long term. We hope that price-sensitive students recognise that these fees are a one-time cost, and overall, the visa fees and living expenses in New Zealand are still more affordable than in Australia.”