A $150,000 (US$100,000) increase in H-1B visa fees for US work permits led to panic and confusion among visa holders and applicants over the weekend. The large price tag has also raised serious questions for Australian startups, tech companies, and workers.
Here’s what you need to know.
Who is affected by the new H-1B visa rule?
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The new $150,000 H-1B visa fee applies to Australians and other foreigners seeking to enter the US workforce with a new sponsor or as first-time applicants for an H-1B visa.
Those already holding H-1B visas are not affected and may continue to travel and renew as usual, following clarifications from the White House and immigration authorities.
Smaller Australian startups, new graduates, and early-stage companies in particular may struggle with the significant fee, which is charged per applicant, not per company.
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There are currently no exemptions or relief for small businesses or education-linked ventures, which could make it harder for Australian talent to access US job opportunities or for startups to bring key employees to market in the United States.
Does the H-1B fee apply to current visa holders?
The H-1B announcement led to confusion among visa holders and dramatic scenes at airports, with travelers rushing to re-enter the United States, fearing visa complications or steep new costs.
One video even showed people disembarking from a plane in San Francisco over fears of being hit with the $150,000 fee upon their return.
@croatiantravellers
An Emirates flight at San Francisco International Airport (SFO) was held up for nearly three hours after a wave of passengers abruptly chose to disembark. A majority were Indian H-1B visa holders preparing to travel back to India. The disruption was triggered by circulating reports of a new $100,000 fee for U.S. companies sponsoring H-1B employees. Several passengers allegedly received urgent instructions from their employers, urging them to stay back in the country to avoid potential risks to their jobs and visa status. According to witnesses, a large number of Indian travelers rushed to exit the aircraft, creating confusion for the airline crew and ground staff. #usa🇺🇸 #visa #india #news #trump
♬ original sound – Croatian Travellers
This has since been clarified. Despite initial concerns, the new H-1B visa fee does not apply to current H-1B holders or to renewals, only to new applications from those seeking H-1B sponsorship for the first time.
Is the new H-1B fee annual or one-time?
White House clarifications have confirmed the $150,000 fee is a one-time charge per new H-1B petition, not an annual payment.
When do the H-1B visa changes come into effect?
They are now in effect. The new rules were implemented at midnight on September 21.
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How are Australian startups and workers affected by the H-1B visa fee?
Australian startups and small businesses domiciled or operating in the US will be affected by the new fee.
At the time of writing, no exemptions or rebates exist for SMEs, university-linked companies, or accelerator-backed teams.
As a result, smaller businesses and startups may find it prohibitively expensive to sponsor new hires under the new fee.
Early-stage companies often lack deep immigration counsel or legal resources and could be further challenged by new audit and compliance requirements embedded in the H-1B changes.
E-3 visa vs H-1B for Australian startup teams
As an alternative to the H-1B visa, the E-3 remains the most accessible option for Australian professionals seeking to work and grow a business in the US. It doesn’t require a lottery, there’s no $150,000 fee, and far less red tape than nearly every other US work visa route.
For startups, the E-3’s streamlined application means candidates and employers bypass the slow, costly petition process required by H-1B.
Applications are made directly at a US consulate, saving significant time and expense. The E-3 also has an annual quota of 10,500 and is accessible year-round.
Another major draw for founders and employers is the E-3’s flexibility. It is valid for two years and allows unlimited renewals, so startups can employ Australian talent long-term without worrying about fixed-term limits. If an employee needs to change roles or employers, the E-3 enables this with a transfer process.
Family inclusion has been another major attraction for the E-3 visa. Australian spouses are eligible for unrestricted work rights under the E-3D status, and children can attend school in the US.
Financially, the E-3 is cost-effective: application costs are minimal, usually just a consular fee, avoiding the multi-thousand-dollar petition fees and premium processing charges associated with H-1B and other routes.
Eligible applicants must have an offer for a specialty occupation role and hold related qualifications. It’s important to note that this visa is limited to Australians and excludes most self-sponsored founders. The E-3 also doesn’t have a direct green card pathway.
New ‘gold card’ and ‘platinum card’ visas allow for wealth-based US residency
Over the last few days, President Trump signed an executive order for a new pay-to-play “gold card”. This visa grants US permanent residency and citizenship for a $US1 million fee, plus vetting.
There is also a new US$2 million “corporate card” that comes with employee transferability and a US$5 million “platinum card”. The latter still requires congressional approval, but it may allow you to work for up to 270 days per year in the US without being hit with foreign income tax.
Other US startup visa options: O-1, E-2, and L-1 explained
Australian founders and employees could also consider these other visa options for the US:
