Australia’s ruling Labor Party announced Monday that it would raise international student visa fees to A$2,000 ($1,279) if re-elected, as part of a broader effort to tighten controls on the booming education sector that has become a major driver of immigration.

The proposed increase, up from the current A$1,600, is projected to generate approximately A$760 million over the next four years, according to a statement from Treasurer Jim Chalmers and Finance Minister Katy Gallagher detailing Labor’s policy costings ahead of Saturday’s federal election.

“We believe this is a sensible step that reflects the true value of studying in Australia,” Gallagher told reporters at a press conference.

The move follows last year’s sharp visa fee hike, when the government more than doubled costs from A$710 to A$1,600. Australia’s conservative opposition, however, is proposing even steeper fees — pledging a minimum of A$2,500 for general student visas and up to A$5,000 for applicants to the prestigious Group of Eight universities.

While international students provide critical revenue to Australian universities, they have also contributed to a spike in net migration, exacerbating housing affordability crises in major cities. Nearly 200,000 international students arrived in Australia in February 2025, marking a 12.1% increase from the previous year and surpassing pre-pandemic levels by 7.3%, according to official data.

In response to growing concerns over migration and housing, Labor has vowed to cap new international student commencements at 270,000 in 2025, while the opposition party proposes an even tighter cap of 240,000.

Australia remains one of the world’s top destinations for overseas students, with more than one million international students enrolled across institutions in 2024, including 572,000 new commencements. However, the cost of studying in Australia is already far higher than in other major destinations, where student visa fees are about $185 in the United States and C$150 ($108) in Canada.

In addition to fee hikes, the Australian government has recently introduced tougher English language requirements for student and graduate visas and granted new regulatory powers to suspend education providers found repeatedly violating international recruitment standards.