New Zealand to Double Student Visa Fees from October 2024

Highlights:

• New Zealand is raising visa application fees across almost all categories, including student visas.
• Starting 1 October 2024, student visa fees will double, though they will still be much lower than those in Australia.
• Recent surveys show that visa fees impact the study plans of nearly half of prospective students looking to study in New Zealand.

The New Zealand government has announced that visa fees will increase across nearly all categories starting 1 October 2024. Immigration Minister Erica Stanford explained that these changes are intended to create a more sustainable immigration system by shifting the cost from New Zealand taxpayers to visa applicants. The increased fees are projected to reduce public funding needs by over NZ$563 million (US$338 million) over the next four years.

“Our immigration system has relied heavily on taxpayer subsidies until now,” the Minister stated. “The changes we’re making will shift the costs to those who benefit from the system, ensuring it is self-sustaining and more efficient. The new charges reflect the costs of processing visas, managing higher-risk applications, and increased compliance expenses. However, our fees remain competitive compared to countries like Australia and the UK, so we’re confident New Zealand will remain an attractive destination for living, working, studying, and visiting.”

Doubling of Student Visa Fees

On 9 August, stakeholders were informed via email that student visa fees would double from NZ$375 to NZ$750 starting 1 October. This change follows Australia’s recent decision to double its student visa fees to AUD$1,600 (NZ$1,750). Even with the fee increase, New Zealand’s student visa cost will be less than half the price of an Australian student visa.

What Do Students Think?

A recent IDP pulse survey offers valuable insights into how visa fees affect prospective students’ study plans. Conducted in June 2024, before the fee increase announcements in Australia and New Zealand, the survey still showed evidence of price sensitivity. Among students considering New Zealand, 50% said that the cost of the student visa would have little impact on their study plans. However, 22% said an increase would have a “medium” impact, while 28% indicated it would have a “high” impact.

Presenting the findings at the NZIEC 2024 in Wellington, IDP Partnership Director Jerry He noted, “NZ-bound students appear to be more price-sensitive, with half of the surveyed students indicating that student visa fees influence their study destination choices. This significant portion of students affected by visa fees should benefit New Zealand.”

The IDP survey also revealed that price sensitivity varies by country. Students from the Philippines and Bangladesh showed greater concern over visa fees, while those from China were less affected. “These market differences are crucial as New Zealand aims to attract future students who may consider switching from Australia,” added Mr. He.

85% Visa Approval Rate

At NZIEC 2024, Immigration New Zealand officials reported that the country has received 124,000 study visa applications since reopening its borders to international visitors in August 2022. Of those, 119,000 have been processed, resulting in 101,000 visa approvals—a solid 85% approval rate, with applications processed in an average of six weeks.

INZ officials also mentioned that agents can offer advice to prospective students without needing to be licensed immigration advisors, but only concerning student visas. However, the agent must declare their involvement by completing a student visa declaration form INZ1226.