From 10 May 2024, the amount of money Student (subclass 500) and Student Guardian (subclass 590) visa applicants are required to have is increasing.
The last time the financial requirements for Student visas were updated was in October 2023. That was a relatively minor increase to match inflation rates in the economy. This time, the new figures are an increase of approximately 21 percent.
The increase was announced one day before it came into effect. It is likely to have caught prospective applicants off guard. Those who are yet to have lodged their application may now need to make a bigger effort to demonstrate they meet the increased financial requirements. Others may be ineligible and will need to reconsider their visa/course options.
The financial capacity requirement has been updated to align with a proportion (75 per cent) of the national minimum wage. This proportion considers that students are out of course session for 25 per cent of the year. During this time they may return home or have access to unrestricted work.
The rationale for this new methodology is that a student visa holder should be able to support themselves to at least the standard of the lowest paid Australian worker. According to the Department of Home Affairs, the new methodology more accurately accounts for the costs of modern living, especially in light of increasing cost of living pressures.
The below table outlines the funds applicants need to show to meet the minimum financial capacity requirement, which will change from 10 May 2024.
| Before 10 May 2024 | 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
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It is important to note that the updated figures refer to the 'living expenses' component of the financial capacity requirement. It does not include course fees and travel costs.
According to the Department of Home Affairs, the increased financial requirements will better indicate the amount of money considered reasonable to provide a minimum standard of living while studying in Australia.
Home Affairs will assess applications lodged before 10 May 2024 under the financial capacity requirements in effect at the time of application.
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For more information please Contact Us or email elan@ryshermigration.com.au
Elan Rysher is a Registered Migration Agent and Qualified Student Counsellor. He is the main Writer for ImmiUpdates and the founder of Rysher Migration. Being a former migrant himself, Elan is passionate about helping others fulfil their Australian dream.
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