Brace Yourself: Visa Application Charges are Increasing from 1 July

 

 

Are you planning to lodge a visa application soon? If so, we have some bad news for you. Starting from 1 July, the Australian government has announced that the Visa Application Charges (VACs) will increase. The government claims that this increase is necessary to improve the visa processing system and fund other “government priorities.” But what does it mean for you, the visa applicant? In this blog post, we will break down the details of these changes, explain who will be affected, and offer some tips to help ease the financial burden.

First, let’s talk about the numbers. All visa application charges will increase by 6% from 1 July. This means that if you are planning to apply for any visa type after 30 June this year, you will need to pay more. In addition, there will be an increase to the VACs in line with CPI indexation, which is currently at 7%. The CPI increase occurs each year on 1 July.

Unfortunately, some visa types will be hit even harder. Select visitor and temporary visa classes, comprising visitor, working, holiday, work and holiday, training, temporary activity, and temporary work (short stay specialist) visas, will have an additional 15% increase added to them. Business innovation and investment visas will have a whopping 40% increase in addition to the 6% across the board and the CPI increase. However, the good news is that the Pacific Engagement Visas and visas related to the Pacific Australian Labour Mobility Scheme, will not be affected by these changes.

These changes will have a significant impact on employers who are seeking to sponsor migrant workers. Employer sponsorship costs are already very high, and the additional costs may cause employers further significant financial pain. This could lead to a decrease in the number of businesses that are willing to, and capable of, sponsoring migrant workers, ultimately affecting those seeking employment visas, and impacting Australia’s already dire shortage of skilled employees.

At this point, you may be asking yourself: what can I do to manage the cost increase? First, we recommend reviewing your visa application and ensuring that you have all the correct documentation and application forms ready to lodge, to avoid additional fees.  Keep in mind that if you pay your fee and lodge your visa application on or before 30 June, you can avoid the increases entirely.

In conclusion, the impending Visa Application Charge increase is not the news that we wanted to hear; however, it is a reality that we need to prepare for. Be sure to get your visa application in by 30 June, so you don’t have to pay the additional fees.  

We’ll be in touch with our clients to ensure where possible, applications can be lodged to avoid the extra costs.