Beginning May 10, 2024, prospective students and their guardians aiming to study in Australia will need to meet revised financial capacity requirements. This adjustment comes as part of the Australian government’s efforts to ensure that international students have adequate financial resources to sustain themselves during their studies in the country. The amendment aligns the financial capacity requirement with 75 percent of the national minimum wage, providing a clearer indication of the funds necessary to maintain a basic standard of living while pursuing education in Australia.
Updated financial capacity requirement
The updated financial capacity requirement reflects a consideration for the fact that students spend approximately 25 percent of the year out of course sessions. During this time, they may choose to return to their home countries or engage in unrestricted work opportunities, enabling them to support themselves financially. By recalibrating the financial threshold in this manner, the Australian government aims to empower international students to make informed decisions about their educational journey and mitigate various challenges commonly associated with insufficient financial resources.
One of the primary benefits of the increased financial capacity requirement is the potential reduction in financial distress experienced by international students upon arrival in Australia. Adequate financial preparation ensures that students can meet their living expenses without resorting to excessive work hours, which could otherwise compromise their academic performance and visa compliance. Moreover, the adjustment aims to safeguard students from the risks of exploitation in the workplace, as they are less likely to seek unauthorized employment due to financial pressures.
Increased minimum required funds
The subsequent table will outline the increased minimum required funds necessary to fulfill the financial capacity requirement.
| Financial capacity requirement before 10 May 2024 | Financial capacity requirement after 10 May 2024 | |
| primary applicant | AUD24,505 | AUD29,710 |
| spouse or de facto partner of the Student primary applicant (not applicable to Student Guardian applicant) | AUD8,574 | AUD10,394 |
| dependent child | AUD3,670 | AUD4,449 |
| annual school costs | AUD9,661 | AUD13,502 |
| personal annual income if there is no member of the family | AUD72,465 | AUD87,856 |
| personal annual income where there is a member of the family unit | AUD84,543 | AUD102,500 |
Table retrieved from Department of Home Affairs Website. https://immi.homeaffairs.gov.au/news-media/archive/article?itemId=1196
It’s important to note that applications lodged before May 10, 2024, will be assessed based on the financial capacity requirements in effect at the time of application. However, prospective students and their guardians are encouraged to familiarize themselves with the updated requirements to ensure compliance and avoid any potential discrepancies.
In conclusion, the increase in the financial capacity requirement for Australian student visas represents a proactive step towards enhancing the overall well-being and experience of international students studying in the country. By aligning the financial threshold with a proportion of the national minimum wage, the Australian government aims to foster a supportive environment conducive to academic success and personal development for all international students.
For more detailed information, applicants are directed to refer to the Subclass 500 Student visa and Subclass 590 Student Guardian visa guidelines provided by the Australian government. Alternatively, prospective applicants can contact our office by either calling us on 07 3138 0908 or email us at info@phoenix-law.com.au.
