The New Zealand government has announced increased visa fees “across almost all visa categories” that will come into effect on 1 October 2024. Immigration Minister Erica Stanford said that the changes are designed to create a more sustainable immigration system, and to shift the cost of administering the system away from New Zealand taxpayers and more heavily toward visa applicants. All told, the increased fees are expected to reduce public funding requirements for the system by more than NZ$563 million over the next four years (US$338 million).
“Until now, our immigration system has been heavily subsidised by taxpayers. The changes we’re making are shifting the cost to those benefitting from the system. We’re ensuring it is self-funding and more efficient,” said the Minister. “The new charges reflect the costs associated with visa processing, assessing and managing more high-risk applications, and increased compliance costs…[However,] the charges remain competitive in comparison to countries like Australia and the United Kingdom so we are confident New Zealand will continue to be an attractive destination to live, work, study and visit.”
Student visa fees will double
Stakeholders were advised by email on 9 August that student visa fees will be affected, and that they will double from the current NZ$375 to NZ$750 as of 1 October.
The move comes just a month after Australia’s decision to double its student visa application fees to AUD$1,600 (NZ$1,750), and it compares to the relatively low visa fees levied in other major study destinations, including Canada CDN$150 (NZ$180) and the United States US$185 (NZ$310).
The more important relative pricing among destinations, however, is unquestionably between Australia and New Zealand. Even with the adjusted fees coming into effect in October, a New Zealand student visa application will cost a little more than 40% of the price of an Australian study visa application.
What do students think?
IDP’s recent pulse survey provides some interesting insights into how visa fees influence the study plans of prospective students. It is important to note that the survey was in the field in June 2024, ahead of the actual fee increase announcements in Australia and now New Zealand. But even so, we can see some evidence of price sensitivity.
When it comes to prospective students considering study in New Zealand, 50% said that the cost of the student visa would have little impact on their study plans. However, the other 50% of respondents demonstrated more price sensitivity with 22% saying an increase would have a “medium” impact and the remaining 28% indicating it would have a “high” impact.
Presenting the findings at NZIEC 2024 in Wellington last week, IDP Partnership Director Jerry He said, “We can see that NZ-bound students appear to be more price sensitive, with half of the surveyed students claiming that student visa [fees] influences where they intend to study. This large proportion of students influenced by visa fees should benefit New Zealand.”
The IDP findings illustrate that that price sensitivity varies quite a bit by sending country, with markets such as the Philippines and Bangladesh demonstrating a higher level of concern around visa fees. Meanwhile, the issue was less of a factor for students from China. “These market distinctions are important as New Zealand seeks to target future students that may be persuaded to switch away from Australia,” added Mr He.
85% approval rate
Also speaking at NZIEC 2024, Immigration New Zealand officials shared that New Zealand has received 124,000 study visa applications since the country’s border re-opened to international visitors in August 2022. Just over 119,000 of those files have been processed to date, resulting in 101,000 visa approvals. That works out to an 85% approval rate, with applications processed within six weeks on average.
INZ officials note as well that agents are permitted to provide advice for prospective students without being a licensed immigration advisor, but only with respect to student visas. In such cases, however, the agent must declare their involvement in the student’s application by completing a student visa declaration form INZ1226.
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