Visa Fee Increases Spark Controversy Over Immigration Costs.
Immigration Minister Erica Stanford is facing criticism for substantial increases in visa fees, which some argue exceed necessary amounts to cover Immigration New Zealand’s (INZ) costs. The government announced these fee hikes on Friday, effective October 1. Stanford stated that the changes would generate over $563 million in revenue over the next four years, equating to about $140 million annually.
During the election campaign, the National Party pledged to make INZ a fully self-funded agency. In her announcement, Stanford explained that the new fees reflect costs associated with visa processing, risk assessments, and managing high-risk applications. They also account for increased compliance costs linked to migrant exploitation and asylum claims, as well as necessary upgrades to INZ’s technology systems.
However, the projected deficit for INZ in May was significantly lower than the additional revenue expected from the new fees. Chris Shi, head of finance business partnering at INZ, noted that the forecast deficit across all revenue accounts—fees, the New Zealand Electronic Travel Authority (NZeTA), and immigration levies—would be $32.2 million by the end of the 2024 financial year.
Analysis of INZ’s finances over the past five years indicates that the agency has consistently generated more revenue than it has lost in processing costs. Despite this, Minister Stanford has declined RNZ’s requests for an interview on the matter.
Ricardo Menendez March, the Green Party’s immigration spokesperson, criticized the government’s approach, arguing it prioritizes tax cuts over the needs of INZ. “This government is actively under-resourcing Immigration New Zealand by cutting Crown funding and then placing the financial burden on migrant workers,” he stated. “Visa fees have almost doubled for many categories, placing families in difficult situations, particularly for overstayers who struggle to regularize their status.”
Menendez March warned that the increased fees would push the immigration system back towards a reliance on “hyper-migration” to sustain itself, a model that proved problematic during the pandemic, which severely impacted INZ’s revenue.
He emphasized that fluctuations in the number of migrants each year make this model unsustainable. “With the government’s reduced funding for INZ, policy advice will increasingly depend on high migration figures,” he said, noting that processing asylum claims will similarly depend on these numbers.
Summary of New Visa Fees:
Skilled Residence Category: Increased from $4,290 to $6,450
Entrepreneur Residence Category: Increased from $6,860 to $14,890
Active Investor Plus Category: Increased from $7,900 to $27,470
Residence from Work Category: Increased from $4,240 to $6,490
Family Category: Increased from $2,750 to $5,360
Dependent Child Visa: Increased from $2,750 to $3,230
Parent Retirement Category: Increased from $5,260 to $12,850
Employees of Relocating Business Category: Increased from $4,350 to $5,510
Pitcairn Islanders: Increased from $1,610 to $1,940
Temporary Retirement Visitor Visa: Increased from $3,790 to $7,791
Student Visas: Increased from $375 to $750
Post-study Work Visa: Increased from $700 to $1,670
Work to Residence and Partner Work Visa: Increased from $860 to $1,630
Entrepreneur Work Visa: Increased from $3,920 to $12,380
Working Holiday Scheme: Increased from $420 to $670; extensions from $420 to $700
Accredited Employer Work Visa: Increased from $750 to $1,540
