Starting from 10 May 2024, the Australian Government has announced an increase in the financial capacity requirement for Student and Student Guardian Visas. This update aims to ensure that international students and their guardians have adequate financial resources to support a reasonable standard of living while studying in Australia.
What Are the Changes?
The financial capacity requirement will now be aligned with 75% of the national minimum wage, reflecting a more realistic amount needed for living expenses in Australia. This adjustment considers that students are typically out of session for 25% of the year, during which they may return home or engage in unrestricted work.
The new financial requirements are designed to help international students make informed decisions, reducing the likelihood of financial stress, visa condition breaches, or exploitation in the workplace.
Updated Financial Capacity Requirements (Effective from 10 May 2024)
Below are the updated financial capacity amounts that students and their guardians must demonstrate to meet the minimum eligibility criteria:
| Applicant |
Before 10 May 2024 |
After 10 May 2024 |
| Primary Applicant (Student) |
AUD 24,505 |
AUD 29,710 |
| Spouse/De facto Partner |
AUD 8,574 |
AUD 10,394 |
| Dependent Child |
AUD 3,670 |
AUD 4,449 |
| Annual School Costs (for school-age children) |
AUD 9,661 |
AUD 13,502 |
| Personal Annual Income (single applicants) |
AUD 72,465 |
AUD 87,856 |
| Personal Annual Income (with family unit) |
AUD 84,543 |
AUD 102,500 |
Why Has the Financial Requirement Increased?
By increasing the financial capacity requirement, the Australian Government aims to ensure that international students and their families are adequately prepared for the financial responsibilities of living and studying in Australia. This change helps to:
- Minimize financial distress for students during their time in Australia.
- Reduce the likelihood of students breaching their visa conditions by working more hours than permitted.
- Decrease vulnerability to worker exploitation, which can occur when students are financially struggling.
Who Is Affected?
These new financial capacity requirements will apply to all Student and Student Guardian visa applications lodged on or after 10 May 2024. Applicants who apply before this date will be assessed under the previous financial requirements.
For More Information
For detailed guidance on the updated financial requirements, including how to demonstrate financial capacity. Our certified counsellors at Landmark Education are here to help. Contact us today for personalized guidance at 014542781 or connect with us via Zoom. We're here to make the process as smooth as possible for you!
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Source: Department of Home Affairs.
