Australia’s inbound tourism industry is ringing alarm bells after the Federal Government quietly lifted the Visa Application Charge (VAC) for the main Visitor visa (sub-class 600) from A$200 to A$250 on 1 July. The same regulation bundle pushed the Working Holiday Maker fee up from A$670 to A$840. Operators say the timing is tone-deaf: long-haul air capacity is only now back at pre-pandemic levels and competitor destinations such as Japan and Thailand are spending heavily on promotion while keeping entry costs low. Although Home Affairs insists the extra A$50 is insignificant compared with overall travel budgets, Asian trade partners disagree. China, India, Indonesia and Vietnam—markets Canberra has earmarked for growth—are among the nationalities that must use the more expensive Visitor visa, whereas travellers from Singapore, Japan and South Korea can use the A$20 Electronic Travel Authority. “We’re effectively charging our priority customers the highest cover charge at the door,” Tourism & Transport Forum chief Margy Osmond told TTG Asia. Beyond leisure travel, the increase also affects short-stay business travellers who rely on the Visitor visa for conferences and exploratory trips. Australian convention bureaux warn that higher entry costs can tip the scales when event organisers compare destinations with similar infrastructure in Asia. Small and medium-sized exporters are likewise concerned that prospective buyers may postpone familiarisation visits. Historically, VAC rises are announced only on the day they take effect to avoid a pre-deadline application surge. Industry groups argue this practice undermines transparency and corporate travel planning; they are calling for at least 60 days’ notice in the future. They also want a review of whether the Working Holiday Maker fee—now almost A$1,000 including ancillary charges—still fulfils the programme’s youth-mobility objectives. For now, businesses are scrambling to update quotes and marketing collateral. Travel management companies recommend that corporates build a 25 % buffer into budget forecasts for Australian trips in 2026-27 and remind employees that the VAC is payable at the moment an online application is lodged, not when travel occurs.
Source: TTG Asia
