Was the 485 Visa Fee Increase Really Necessary?
From 1 March 2026, the Temporary Graduate visa (subclass 485) application fee doubled from $2,300 to $4,600. Dependents also face the same increase.
But the real question is: was this increase actually necessary?
The government has already made significant progress in reducing net overseas migration. Net migration fell to 306,000 in December 2024, down from the post-COVID peak of 555,000 in 2023. So why target the 485 visa program now?
The numbers tell a story
The number of Temporary Graduate visa holders has grown significantly:
• December 2019: 89,000 holders
• December 2025: 225,751 holders
That represents 154% growth since pre-COVID levels. However, this spike reflects past student visa grants, not current demand.
These graduates arrived during the 2022–2023 border reopening, when Australia actively encouraged international students to return and help restart the economy.
The student pipeline is already shrinking
Recent data shows a sharp contraction:
• Student visa lodgements down 26% (from ~600,000 to ~427,000)
• Temporary Graduate visa applications down 31%
• VET and ELICOS sectors down 50% year-on-year
• Offshore student visa grants down 12%
In other words, the pipeline feeding future 485 visas is already declining rapidly. The current 225,000+ cohort onshore is simply a lagging indicator of decisions made several years ago.
Who actually holds 485 visas?
The distribution of holders also reveals interesting dynamics.
Top source countries include:
• India – largest number of 485 holders (despite being #2 in student numbers)
• China – ranked #3 in 485 holders (despite being #1 in students)
• Nepal, Pakistan, Philippines, Sri Lanka also represent large cohorts
South Asian countries together account for a significant share of 485 visa holders, reflecting strong demand for post-study work pathways.
The 485 program has already been tightened
Several major policy changes were introduced in the past two years:
| Date | Policy Change |
| 2022–23 | Government cleared backlog of 60,000+ visa applications |
| March 2024 | English requirement increased from IELTS 6.0 → 6.5 |
| July 2024 | Age limit reduced from 50 → 35 |
| July 2024 | Visa durations shortened |
| July 2024 | 485 holders restricted from applying for further student visas onshore |
| March 2026 | Application fee doubled to $4,600 |
Taken together, these changes already reduced accessibility to the program significantly.
So why double the fee?
The policy rationale behind the increase has not been clearly explained.
Several interpretations have been raised:
• Revenue generation
• Demand suppression
• A broader migration reduction strategy
But there is an important point to consider: Student visa lodgements are down 26%, and 485 applications are down 31%. The current 225,000+ 485 holders will not be affected by this change, because they already hold their visas. Instead, the fee increase impacts future applicants from a student cohort that is already shrinking.
With total application costs now approaching $6,000–$7,000 once health exams, police checks, English tests and insurance are included, the 485 visa is becoming a significant financial barrier.
What happens next?
Universities and industry professionals have already warned that high fees and constant policy changes are reducing Australia’s attractiveness as a study destination.
The real question now is whether these measures were designed as temporary adjustments or as a part of a longer-term shift in Australia’s international education strategy.
The pipeline is shrinking (e.g ELICOS) and the impact will be felt very soon across universities, colleges, and the broader education export sector.
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