New Zealand (Commonwealth Union)_ In a surprising development for the international student community, the New Zealand government will impose a substantial increase in student visa fees, doubling them from NZ$375 to NZ$750 starting 1 October 2024. This move is part of a broader strategy to revamp the immigration system, aiming to shift the financial burden from New Zealand taxpayers to visa applicants. Accordingly, the increase is expected to save more than NZ$563 million (US$338 million) in public funding over the next four years, thereby supporting a more sustainable and self-funding immigration system.
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Immigration Minister Erica Stanford outlined the logic behind this decision, emphasizing the need for a more efficient and self-sustaining immigration process and rules. Stanford said, “Until now, our immigration system has been heavily subsidized by taxpayers. The changes we are making are shifting the cost to those benefiting from the system. We are ensuring it is self-funding and more efficient”. She also noted that despite the fee increase, New Zealand’s visa charges remain competitive when compared to other major destinations, such as Australia and the United Kingdom.
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This decision follows Australia’s recent move to double student visa application fees to AUD$1,600 (NZ$1,750), highlighting a broader trend of increasing costs for international students in the region. In comparison, visa fees in Canada and the United States are relatively lower, at CDN$150 (NZ$180) and US$185 (NZ$310), respectively. However, even with the new fees, a New Zealand student visa will cost just over 40% of the price of an Australian study visa application.
Additionally, the increase in visa fees is likely to influence prospective students’ New Zealand study plans, as indicated by a recent survey conducted by IDP. Although the survey was completed in June 2024, before the fee increase announcements by Australia and New Zealand, it provides valuable insights into how such changes can affect student decisions. The survey revealed that while 50% of respondents considered the visa fee to have minimal impact on their study plans, the remaining 50% showed varying degrees of price sensitivity. Specifically, 22% indicated that an increase would have a medium impact, while 28% believed it would have a high impact.
IDP Partnership Director Jerry He, presenting the findings at NZIEC 2024 in Wellington, observed, “We can see that NZ-bound students appear to be more price sensitive, with half of the surveyed students claiming that student visa fees influence where they intend to study. This large proportion of students influenced by visa fees should benefit New Zealand.” The survey also highlighted regional differences in price sensitivity, with students from countries such as the Philippines and Bangladesh exhibiting higher concern over visa fees compared to their counterparts from China.
In addition to the fee increase, Immigration New Zealand (INZ) reported that since reopening its borders to international students in August 2022, it has processed approximately 124,000 study visa applications. Of these, over 119,000 have been processed, resulting in an 85% approval rate. Applications have been processed within an average of six weeks. At the NZIEC 2024 conference, INZ officials also clarified that while immigration agents can provide advice on student visa categories without being licensed immigration advisors, they must complete a student visa declaration form (INZ1226) to declare their involvement. Furthermore, the fee increase reflects New Zealand’s ongoing efforts to balance the financial sustainability of its immigration system while remaining competitive on the global stage. For prospective students and education agents alike, understanding the implications of these changes will be crucial in navigating the evolving landscape of international education.
