Australia hikes student visa fees, but spares ELICOS — what it means for Indian students

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This fee change comes amid a broader tightening of Australia’s international education system. (Image: AI generated)

Starting July 2026, Australia hiked its student visa — also known as subclass 500 — application charge. From the earlier AUD $2,000 to $2,500, a steep 25 per cent jump. But in the same round of changes, the government carved out a separate, lower fee for students applying for English Language Intensive Courses for Overseas Students, or ELICOS — set at $2,050. Every other category of student pays the full fee.

What is ELICOS, why is it exempted?

ELICOS refers to short, intensive English-language courses taken by international students in Australia, either as standalone programmes, or, more commonly, as a bridge course before starting a full degree or diploma. Because these courses can run for just a few weeks or months, unlike a two- or three-year degree, the government has said the lower fee “recognises the shorter length of ELICOS and Non-Award study programs.”

Also Read | Australian visa rate increase: What changed, who pays more

In other words, officials accepted the argument that a student paying for six weeks of English classes should not be charged the same visa fee as someone enrolling in a full academic programme. Industry bodies had, in fact, pushed for an even bigger cut, pointing to falling enrolments — but the government still nudged the ELICOS fee up marginally, from $2,000 to $2,050, even as it spared the sector the full 25 per cent increase applied elsewhere.

This fee change comes amid a broader tightening of Australia’s international education system. In 2026, the government retained its National Planning Level (NPL), a mechanism that sets a target for new international student commencements at 295,000, unchanged from the previous year. Officials describe the NPL as a “prioritisation system” for visa processing rather than a hard cap, meaning any student who meets visa requirements can still apply. But the intent behind it is to slow the pace of growth in international student numbers after a sharp post-pandemic surge.

Student intake restrictions backfired on ELICOS

ELICOS has borne the brunt of this slowdown. Enrolment data from Australia’s Department of Education shows that in the year to date May 2026, ELICOS enrolments fell 27 per cent compared with the same period a year earlier, even as university enrolments continued to grow

For all of the previous year, the decline was steeper, with ELICOS enrolments down 35 per cent. Vocational education courses also saw a sharp drop, even as universities remained the one sector showing consistent growth. This is being attributed to tighter visa scrutiny, successive fee increases, and a policy push to weed out applicants using short courses as an entry point for reasons other than genuine study.

Why does this matter for Indian students?

For many Indian students, ELICOS is often not the end goal but a stepping stone — used to meet English-language requirements before moving into a university or vocational programme. A comparatively lower and more predictable visa fee for this first step matters, given how expensive the overall process to study in Australia has become

Indian nationals made up around 17 per cent of Australia’s international student population as of late 2025, with more than 120,000 Indian students enrolled in the country

However, scrutiny of applications has also increased. In February 2026, 40 per cent of Indian applicants for university study visas were rejected, official data showed, reflecting the government’s tighter approach to assessing “genuine” students

The lower ELICOS fee offers Indian applicants some relief on one part of an increasingly expensive and closely monitored process. But it does not offset the larger challenges facing the sector, rising costs, stricter documentation requirements, and high rejection rates — all of which continue to shape how and whether Indian students are being able to make the cut

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Source: indianexpress.com