Education Asia

Increase in Financial Requirement for Australian Student Visa

Starting on May 10, 2024, the Australian Government has enacted a significant adjustment to the financial capacity requirement for individuals seeking Student and Student Guardian visas. The increase was announced on 8 May 2024. This strategic move aims to ensure that those coming to Australia for educational purposes possess sufficient financial resources to sustain themselves adequately throughout their stay.

Under this new policy, the financial capacity requirement will be recalibrated to align with 75 percent of the national minimum wage, a figure reviewed annually by the Fair Work Commission. This proportional adjustment is designed to provide a more precise reflection of the financial means necessary for students to maintain a reasonable standard of living while pursuing their studies in Australia. Importantly, it acknowledges that students typically spend a quarter of the year outside of course sessions, during which they may return home or engage in unrestricted work opportunities of available.

International students who can demonstrate a financial capacity equivalent to AUD29,710 will be deemed to meet the updated requirement. By having access to this amount, students are better equipped to focus on their academic pursuits without looming specter of financial hardship. Moreover, this measure is expected to mitigate instances of students exceeding their permitted work hours or being exploited in the labor market, thereby safeguarding their welfare and adherence to visa conditions.

The following minimum required amounts have increased:

· For a primary applicant: an increase from AUD 24,505 to AUD 29,710

· For a spouse or de facto partner of the primary applicant: an increase from AUD 8,574 to AUD 10,394*

· For a dependent child: an increase from AUD 3,670 to AUD 4,449

· Annual school costs: an increase from AUD 9,661 to AUD 13,502

· Personal annual income for single applicants: an increase from AUD 72,465 to AUD 87,856

· Personal annual income for applicants with dependents: an increase from AUD 84,543 to AUD 102,500.

*Note: not applicable to the Student Guardian (subclass 590) visa; regulation 590.312 specifies that a secondary applicant must not have turned 6.

It is crucial to note that applications submitted before May 10, 2024, will be evaluated based on the previous financial capacity criteria in place at the time of application. However, individuals lodging their applications within the initial week of the policy implementation will be afforded additional time to demonstrate their capacity to meet the revised requirements, thus ensuring a smoother transition period.

For more information on the increased financial capacity requirement, including the type of evidence applicants can provide to show their access to these funds, consult with the experienced counselors at Education Asia. It doesn’t matter if you cannot visit us in person, you can book a free online consultation and have your queries answered from the comfort of your homes.