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Australia: increase in visa cost could hit providers

English Australia has joined with the Australian tourism industry to argue against a near 30% increase in the cost of the Working Holiday Visa (WHV), which it says could deter overseas language students who combine work and study in Australia.

The WHV will rise from AUS$280 to $350, the Skilled Graduate visa from $315 to $1,260

The cost of a Skilled Graduate visa, aimed at recent graduates wishing to work in Australia, is also set to quadruple, although the move is not expected to have the same impact.

As outlined last month in the government’s Mid-year Economic and Fiscal Outlook, the cost of a WHV will rise from AUS$280 to $350 from January 1 next year. English Australia said the move would hit the 22% of international English language students in Australia who hold the visa.

22% of international English language students in Australia hold the WHV

“The industry is concerned that a fee increase will contribute another negative factor to the decision mix when young people are choosing a destination for their overseas experience,” Sue Blundell, CEO of English Australia, told The PIE News.

“In addition, even if they still decide to come, the more money they have to pay upfront, the less they have to purchase an English language course that will help them get the most out of their visit.”

The rise comes at a time when both the ELT and tourism sectors – which have significant crossover – are struggling with declining interest due to the high dollar and growing international competition.

The Australian Tourism Export Council, which represents 30 of the most significant youth and backpacker products across Australia, points out that the WHV is already more expensive than its equivalent in the UK where it costs US$250; the USA $220; France $175; Canada $165; and Germany $30.

The Department of Immigration and Citizenship would not comment on English Australia’s complaints directly, but defended the raises, saying they reflected the high demand to work in Australia at a time of global uncertainty.

“The federal government clearly thought they would not lose many votes by increasing these visa charges”

It added that targeted areas were unlikely to be impacted. The rise in the Skilled Graduate Visa, for instance, from AUS$315 to $1,260 is linked to Australia’s recently extended post-study work rights (which will increase to up to four years from 2013).

Phil Honeywood of the International Education Association of Australia agreed the rise would not harm uptake but said the rise was politically motivated.

“Faced with a promise to deliver a budget surplus, the federal government clearly thought they would not lose many votes by increasing these visa charges,” he said. “To their credit they reduced student visa costs by 5% at the start of this year.”

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