For students planning to study in Australia, 2025 brings a number of significant changes to the Student Visa (Subclass 500) program. These reforms touch on visa fees, eligibility criteria, processing rules, and overall strategy — reflecting the Australian government’s renewed commitment to balancing quality education with controlled international student growth. Here’s a detailed breakdown of the most important updates for 2025, and practical advice for navigating them.
1. Visa Fee Increase
One of the most visible changes for 2025 is the rise in the application cost for the Student Visa (Subclass 500). Starting July 1, 2025, the base visa application fee increases from AUD 1,600 to AUD 2,000, according to official government funding projections. pbo.gov.au+2vxlmigration.com.au+2
This fee hike also applies to the Student Guardian Visa (Subclass 590) for primary applicants. pbo.gov.au The increase is part of Australia’s effort to better reflect the administrative costs involved in managing its international student program. vxlmigration.com.au+1
2. Higher Financial Capacity Requirements
To strengthen the credibility of student visa applications, the required evidence of financial capacity has been raised. As of May 10, 2024, and continuing into 2025, the minimum funds that a student must demonstrate for living expenses are AUD 29,710 per year. Visa And Immigrations+2espiconsultants.com+2
Applicants must also show that these funds have been held in their bank account for a certain period (typically three months), ensuring that the source of the money is stable and genuine. Student Consultants+1 Additional financial evidence — such as proof of tuition payment, return travel, or support for dependents — may also be required. espiconsultants.com+1
3. Confirmation of Enrolment (CoE) Is Now Mandatory
As of October 1, 2025, all Student Visa applications — whether lodged from inside or outside Australia — must include a valid Confirmation of Enrolment (CoE). Student Consultants This is a change from previous rules where a “Letter of Offer” often sufficed; now, without a CoE, visa applications will be rejected or considered invalid. Business Standard
This rule helps ensure that students are genuinely enrolled in a real course before their visa is approved, strengthening the integrity of Australia’s student visa system.
4. Genuine Student (GS) Requirement Replaces GTE
The longstanding Genuine Temporary Entrant (GTE) test has been replaced by a new Genuine Student (GS) requirement. espiconsultants.com Unlike the prior emphasis on temporary stay, the GS test evaluates whether an applicant’s primary intention is to study, not to migrate.
Immigration officers will now assess whether the student’s academic background, study progression, and future plans genuinely align with their chosen course. Student Consultants+1 Those who cannot clearly demonstrate their study goals or long-term academic sincerity may face visa refusal.
5. Work Rights Adjustments
Work rights for international students are also being tightened. From October 1, 2025, student visa holders are formally restricted to 48 hours of work per fortnight during term time. Student Consultants+1 During official course breaks, such as holidays, unlimited work hours remain permitted.
Some reports suggest that for undergraduates, there's a possibility to limit work to 24 hours per week, while postgraduate students might continue to enjoy more flexibility. espiconsultants.com These rules reflect an effort to prioritize study over employment and ensure students have the means to support themselves without fully relying on part-time jobs.
6. Tighter English Language Requirements
To reinforce academic standards and ensure that international students have sufficient language proficiency, minimum English test scores have been raised. espiconsultants.com+1
For many student visa applicants, the minimum IELTS score is now 6.5 overall, with at least 6.0 in each band, although some providers may allow 6.0 for certain foundation or pathway programs. espiconsultants.com Alternatively, the TOEFL iBT requirement is often 90+ points. espiconsultants.com These stricter benchmarks aim to reduce drop-outs and underperformance among international students.
7. Institution Oversight, “Ghost Colleges” Crackdown, and Processing Delays
Australia is cracking down on low-quality or fraudulent educational institutions, often described as “ghost colleges.” Visa And Immigrations Over 150 such providers have reportedly been closed or sanctioned. espiconsultants.com
Moreover, a major policy tool — Ministerial Direction 111 (MD111) — is being replaced in late 2025 with a new directive. Times Higher Education (THE)+1 Under MD111, institutions that exceed 80% of their allocated student places faced slower visa processing. Times Higher Education (THE) The upcoming directive is expected to introduce a three-lane system, which prioritizes visa processing based on the institution’s compliance and how full its allocation is. Times Higher Education (THE)
This change is part of a broader effort to ensure quality, maintain institutional accountability, and control student numbers in line with national priorities.
8. Higher Cap on International Student Places
While stricter in some areas, the Australian government has also increased the national cap on international student enrollments. The 2026 planning level has been raised to 295,000 places, up from the 270,000 cap. Jagranjosh.com
This does not mean unrestricted growth: these places are allocated carefully across sectors (public universities, VET providers, private institutions), and institutions must now demonstrate compliance and capacity, such as having sufficient student housing, to increase their intake. Jagranjosh.com+1
This managed growth approach reflects a desire to balance educational export revenue with infrastructure and housing constraints.
9. Onshore Application Restrictions
A significant procedural change: onshore applications for a Student Visa from certain visa classes are now restricted. According to new rules, students currently in Australia on Visitor visas or Temporary Graduate Visas (Subclass 485) may not apply for a Student Visa from within the country. Visa And Immigrations+1
This step is designed to deter “visa hopping” — where individuals switch between visa types without strong study intent — and helps preserve the integrity of the education system.
10. New Scholarship Incentives
Alongside stricter visa rules, the Australian government is also expanding its scholarship programs, particularly for international students in critical fields like AI, engineering, medicine, and STEM. vxlmigration.com.au These scholarship initiatives are part of a long-term strategy to attract highly skilled global talent and align student intake with national economic priorities.
What These Updates Mean for Prospective Students
Given these changes, here are a few practical tips for international students planning to apply for an Australian student visa in 2025:
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Budget Carefully: With the visa application fee increasing to AUD 2,000, make sure your financial planning accounts for the higher upfront costs.
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Prepare Strong Financial Documentation: Demonstrate genuine access to at least AUD 29,710 and maintain a clean, traceable history in your bank statements.
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Secure Your CoE: Make sure you have a valid Confirmation of Enrolment before you apply — an offer letter alone is not enough anymore.
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Demonstrate Genuine Student Intent: In your visa application, clearly explain your academic goals, why you chose your course, and how it fits into your future career plans.
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Meet English Requirements: Take the IELTS or TOEFL well in advance and aim for the now higher minimum scores.
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Be Mindful of Work Limits: Plan your finances knowing you'll be limited to 48 hours per fortnight during term time.
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Choose Accredited Institutions: Apply to trustworthy education providers that comply with Australia’s standards; this may also speed up visa processing.
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Explore Scholarship Options: Research and apply for scholarships early, especially in targeted sectors.
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Apply from Outside If Needed: If you are in Australia on a visa type that no longer allows onshore switches, plan to apply from your home country.
Conclusion
The 2025 updates to Australia's Student Visa (Subclass 500) mark a turning point: they reinforce stricter financial, academic, and procedural standards while also expanding student intake in a more controlled, strategic way. These changes reflect the government's commitment to ensuring that international education remains high-quality, credible, and aligned with national priorities.
If you're applying for a student visa in 2025, staying up to date with these changes — and preparing your application carefully — will give you a stronger chance of success. For personalized advice, it’s often wise to consult a registered migration agent or a trusted education counselor who understands the new regime.