Australia Raises Financial Capacity Requirement for Student and Student Guardian Visas
Australia has announced an increase in the financial capacity requirement for student visa and student guardian visas, effective May 10, 2024. The revision aligns with 75% of the federal minimum wage, offering a clearer understanding of the funds necessary to sustain a minimal quality of life while studying. This initiative aims to enhance financial preparedness, minimize debt risks, and discourage exploitation, fostering a more stable and supportive learning environment for international students.
The minimum financial capacity criterion has been revised to correspond with 75% of the federal minimum wage. This adjustment provides a clearer picture of the funds required to maintain a minimal quality of life while studying in Australia. It takes into account that students may miss 25% of the academic year, potentially returning home or working without limitations during that time.
International students are better equipped to make future decisions if they can demonstrate that they meet this new financial capacity criteria.
Less frequently, students will:
- themselves in debt after arriving in Australia
- overwork themselves to the limit on their visa
- expose themselves to worker exploitation
The finances you must demonstrate in order to satisfy the minimum financial capability need are listed in the table below. This requirement will alter as of May 10, 2024.
| 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 |
| personal annual income if there is no member of the family | AUD72,465 | AUD87,856 |
| annual school costs | AUD9,661 | AUD13,502 |
| personal annual income where there is a member of the family unit | AUD84,543 | AUD102,500 |
Applicants that submit their applications before May 10, 2024, will be subject to the current financial requirements. This gradual strategy gives families and kids time to get used to the new financial obligations.
This change is part of a larger effort to make sure that overseas students are financially ready for their time studying in Australia. Better financial preparation and informed decision-making are encouraged, which lowers the possibility of unfavorable experiences brought on by a lack of finances. This modification is anticipated to help create a more stable and encouraging learning environment for international students in Australia, even though it will increase upfront expenses for prospective students.