Australia’s visa fee hike may strain India ties: Lowy

Australia’s sharp increase in graduate visa fees, from AUD 710 to AUD 1,890, risks undermining its diplomacy with India, according to the Lowy Institute. The fee hike, implemented July 1, 2024, affects Indian students, who form Australia’s second-largest international student cohort. The think tank argues the move contradicts Australia’s efforts to deepen ties under the Economic Cooperation and Trade Agreement (ECTA).

India is a key partner in Australia’s Indo-Pacific strategy, and education is a pillar of the relationship. The Lowy Institute noted the hike could discourage Indian students, damaging people-to-people links and Australia’s soft power. The fee rise comes amid domestic pressure to curb migration, but critics say it sends a negative signal to New Delhi.

The Australian government has defended the increase as necessary to manage migration pressures. However, the Lowy Institute warns that the diplomatic cost may outweigh the fiscal benefit, especially as India grows more assertive in negotiating educational partnerships with other countries. The next update on visa policy is expected in the 2025 budget.