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Migration -Uplift of Visa Application Charges
Measure type:
Ongoing
Commences:
1 July2023
Category:
Revenue
Agency:
Department of Home Affairs (Home Affairs)
UCB impact:
2022-23 2023-24 2024-25 2025-26 2026-27
TOTAL
$'m
$'m
$'m
$'m
$'m
$'m
11-•m
I Revenue (Home Affairs)
0.0
+100.0
+150.0
+190.0
+225.0
+665.0
Changes to Home Affairs Receipt
0.0
+100.0
+150.0
+190.0
+225.0
+665.0
Total Payments
0.0
+100.0
+150.0
+190.0
+225.0
+665.0
Total Impact on UC Balance
0.0
-100.0
-150.0
-190.0
-225.0
-665.0
Average Staffing Level (Agency)
0.0
0.0
0.0
0.0
0.0
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Summary
•
This measure will provide a modest increase to Visa Application Charges (VAC) in 2023-24, in
addition to the regular CPI indexation on 1 July 2023.
What will the measure do?
•
Provide a modest increase to Visa Application Charges (VAC) in 2023-24 in addition to the
regular CPI indexation in 2022-23.
•
6% VAC increase for most visas, an additional 15% for selected visitor and temporary visas
{21% total) and an additional 40% for Business Innovation and Investment (Provisional) visas
(BIIP subclass 188) (46% total).
•
The visas with an additional 15% VAC are Visitor (subclass 600) (excluding eVisitor and
Electronic Travel Authority), Work and Holiday (subclass 462), Working Holiday (subclass
417), Training (subclass 407), Temporary Activity (subclass 408), and Temporary Work (Shor
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Stay Specialist) (subclass 400) visas.
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•
VAC for the Pacific Australia Labour Mobility (PALM) stream and the proposed Pacific
Engagement Visa (PEV) are not affected by the increase.
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VAC2 for less than functional English is not affected by the increase.
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What are the majorcomponents?
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behalf of the Commonwealth.
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Annual indexation is based on the CPI for the Budget year (2023-24) as published in Budget ro E:
Paper No.1. This figure was not available at the time of the costing.
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VAC increase is applied at the specified rate after annual indexation, effective 1 July 2023
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o BIIP new VAC = current VAC * (1+ Budget CPI)* (1+46%)
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o Visitor visa new VAC = current VAC * (1+ Budget CPI)* (1+21%)
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o Other visa new VAC = current VAC * (1+ Budget CPI) * (1+6%).
•
Note al VAC’s are rounded up or down to the nearest $5.
•
The VAC increase offsets enhancements to existing visa systems and other Department of
Home Affairs and Whole of Government measures.
Who is impacted by this measure?
•
Visa applicants from 1 July 2023, excluding PALM and Pacific Engagement Visa (PEV)
applicants.
Rebuttals to criticisms
Why do we need to raise VACs?
•
The investment wil assist the department to sustain visa processing capability while we
support the Minister to develop a Migration Strategy, to deliver a Migration System for a
More Prosperous and Secure Australia.
•
The service degradation that would occur without the reinvestment of this VAC uplift into
visa processing would have a more significant impact on the Department’s ability to deliver
our visa programs.
Why has the Business Innovation and Investment (Provisional) visa VAC increased by such a
large amount?
•
We recognise that the Business Investment and Innovation visa is receiving a larger VAC
increase than other visa classes.
•
Alongside the investment in Australia required as part of these visas, up to $5 mil ion direct
investment for Significant Investment Stream, the VAC remains a smal component of costs
to the applicant.
•
With continued demand for Business Innovation and Investment (Provisional) visas, demand
within this cohort can sustain this increase.
Wil this make Australia uncompetitive?
•
The VAC is and remains a small part of the cost to come to Australia.
•
Internationally, Australia remains relatively competitive with other countries.
•
We anticipate demand to remain strong after the VAC increase because of the high
desirability of Australia as a destination; the only way to visit, work or study in Australia is to
get a visa.
Why were Pacific visas excluded?
•
The Pacific labour and engagement visas are central to the Australian Government’s
commitment to build a stronger Pacific family.
•
These visas are designed to delivers jobs for Pacific and Timor-Leste workers, enabling them
to develop skil s, earn income and support their families back home.
•
Keeping the VAC for these visas reasonable ensures they are seen as mutual y beneficial
across the Pacific region.
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Policy Contacts for Migration-UpliftofVisa Application Charges
Position
Name
Contact numbers
Head MigrationReformTaskforce
Alison Larkins
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A/gAS- Migration Reform Taskforce
Rowan Patterson
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