Beginning October 1, 2024, New Zealand will increase student visa fees. The government has announced a reform that would have an impact on many potential overseas students. The student visa fee will jump from NZ$375 to NZ$750. Post-study work visa fees will also rise, from NZ$700 to NZ$1,670.

Reason Behind the Fee Increase

Immigration Minister Erica Stanford remarked that the price increase aims to build a more sustainable immigration system. She highlighted that the additional fees will shift costs from additional Zealand taxpayers to visa applicants. This move is estimated to save more than NZ$563 million (US$338 million) in public financing over the next four years.

Stanford stressed how taxpayers have largely financed the immigration system. Fee modifications are intended to make the system self-sufficient and more efficient.

She also stated that, despite the hike, New Zealand's prices will remain competitive compared to other popular locations such as Australia and the United Kingdom.

Impact on International Students

The fee rise comes just one month after Australia increased its student visa application fee to AUD$1,600 (NZ$1,750). Despite the increased expenses, a New Zealand student visa will still cost less than 40% of an Australian study visa.

A recent IDP pulse survey, conducted in June 2024, highlights how the fee increase may affect students. Although the survey was conducted before the official release, it provides valuable insights.

According to the report, 50% of prospective students believe the fee rise will have minimal impact on their academic intentions. However, 22% predicted a "medium" impact and 28% a "high" impact.

IDP Partnership Director Jerry He presented his findings at the NZIEC 2024 in Wellington. He noted that price sensitivity differs by country. Students from places such as the Philippines and Bangladesh expressed greater anxiety about visa costs.

In contrast, Chinese students were less affected by the cost hike. This information is critical because New Zealand wants to recruit students who may contemplate switching from Australia due to lower fees.

Current Visa Application Statistics

Since reopening its borders to foreign students in August 2022, New Zealand has approved 124,000 student visas. Of these, over 119,000 have been processed, with 101,000 approved. This translates into an 85% approval rate and an average processing time of six weeks.

Immigration New Zealand officials have stated that agents who are not licensed immigration advisors can guide student visa applications. To report their involvement, individuals must fill out the student visa declaration form INZ1226.

FAQS

How does New Zealand's new visa charge compare to other countries?

Even with the rise, New Zealand's student visa fee will be less than Australia's, which is AUD$1,600 (NZ$1,750). Fees in New Zealand will remain competitive when compared to other major study locations.

How does the price sensitivity to visa costs differ among international students?

Price sensitivity varies greatly among countries. For example, students from the Philippines and Bangladesh are more concerned about visa fees, whereas students from China are less affected by the fee increase.