Fee Hike as Part of Broader Immigration Sustainability Efforts
New Zealand is set to double its student visa fees from NZ$375 to NZ$750 starting October 1, 2024. This change is part of the government’s initiatives to create a more sustainable immigration system by shifting costs to visa applicants rather than relying heavily on taxpayer funding.
Immigration Minister Erica Stanford announced that these adjustments are expected to reduce public funding needs by over NZ$563 million (US$338 million) over the next four years. “Until now, our immigration system has been heavily subsidised by taxpayers,” stated Minister Stanford. “The changes we’re making are shifting the cost to those benefitting from the system.”
Comparison with Australia and Competitive Advantage
Even with this fee hike, New Zealand’s visa fees will remain competitive compared to other countries. For instance, Australia recently raised its student visa application fees to AUD$1,600 (NZ$1,750). Despite the increase, a New Zealand student visa will cost just over 40% of what it would in Australia, maintaining New Zealand as an attractive study destination.
Student Reactions to the Fee Increase
According to a recent survey conducted by IDP, student reactions to the fee increase are mixed. While half of the prospective students indicated that the higher visa fees would have little impact on their study plans, the other half showed considerable price sensitivity. Specifically, 22% said the fee increase would have a “medium” impact on their decision-making process, while 28% noted it would have a “high” impact.
Since reopening its borders to international visitors in August 2022, New Zealand has received approximately 124,000 study visa applications. Out of these, 119,000 applications have been processed with an approval rate of 85%, resulting in 101,000 approved visas.
