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Blog

May 8, 2024

Increase to the Financial Capacity Requirement for Student and Student Guardian visas

Effective May 10, 2024, significant changes have been implemented regarding the financial capacity requirements for individuals applying for Student and Student Guardian visas in Australia. These adjustments aim to align with a proportion of the national minimum wage, specifically 75%, to better reflect the amount needed to maintain a minimum standard of living while pursuing studies in Australia. The rationale behind this update is to ensure that international students possess adequate financial resources to support themselves during periods when they are not actively engaged in coursework.

Key Changes and Implications

  1. Financial Capacity Requirement Adjustment: 

The minimum funds required to meet the financial capacity requirements have been increased, signaling a shift towards enhancing the financial stability of visa applicants. The new requirements apply to primary applicants, spouses or de facto partners, dependent children, and individuals without family members in Australia.

  • Primary Applicant: The financial capacity requirement for the primary applicant has been raised from AUD 24,505 to AUD 29,710.
  • Spouse or De Facto Partner: For partners of the primary applicant, the required amount has increased from AUD 8,574 to AUD 10,394.
  • Dependent Child: The financial capacity requirement for dependent children has risen from AUD 3,670 to AUD 4,449.
  • Annual School Costs: The funds needed to cover annual school costs have been adjusted from AUD 9,661 to AUD 13,502.
  • Personal Annual Income: In cases where there are no family members in Australia, the personal annual income requirement has increased from AUD 72,465 to AUD 87,856. If there is a family unit, the requirement has gone up from AUD 84,543 to AUD 102,500.
  1. Rationale Behind the Changes: 

These adjustments are intended to reduce the likelihood of financial distress among international students while in Australia. By setting a higher financial capacity threshold, applicants are less likely to overwork or breach their visa conditions, which can lead to vulnerability to exploitation in the workforce.

  1. Implications for Visa Applicants: 

International students who can demonstrate that they meet the new financial capacity requirements are better equipped to make informed decisions about their educational journey in Australia. Meeting these standards not only enhances their visa approval chances but also contributes to a more stable and sustainable experience during their stay.

  1. Application Assessment: It’s crucial to note that applications lodged before May 10, 2024, will be assessed based on the financial capacity requirements that were in effect at the time of application. Therefore, applicants should be mindful of these changes when planning their visa submissions.

Conclusion

The updated financial capacity requirements for Australian Student and Student Guardian visas reflect a commitment to ensuring the well-being and financial stability of international students. These changes, effective from May 10, 2024, underscore the importance of adequate financial resources in supporting a positive and fulfilling educational experience in Australia. Prospective visa applicants are encouraged to familiarize themselves with these adjustments to facilitate a smooth and successful visa application process.

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