New Financial Requirements for International Students: Demonstrating Savings of at Least AUD$29,710 (read in 5 mins)

From the last 10 of May, the Australian Government announced an increase in the amount of savings international students will need to show if they want to apply for a student visa. The new amount required is AUD$29,710 for a year of living in Australia. This requirement was set at AU$24,505 back in October 2023.

22/05/2024
  |  
immigration and visas Studying in Australia

Australia has always been a popular destination for international students due to its high-quality education system, multicultural society, and beautiful landscapes. However, studying in Australia requires more than just academic qualifications. One of the key requirements for obtaining a student visa is demonstrating sufficient financial capacity for one year of tuition fees, return airfare to and from Australia to the student’s home country, and overseas student health coverage.  This article will delve into the recent changes in this requirement and the reasons behind them.

 

What is Financial capacity:

The financial capacity requirement is a crucial part of the student visa application process in Australia. It ensures that international students can support themselves financially during their stay, thereby reducing the risk of financial hardship. As living costs rise, it’s only natural that the financial capacity requirement increases as well. This ensures that international students continue to have a positive and enriching experience while studying in Australia.

 

Why the Financial capacity was increased:

The Australian Government increased the financial capacity requirement for several reasons:

  1. Rise in Living Expenses: The primary reason for the increase is the rise in living expenses. The amount students need to show to meet the financial capacity requirement is the minimum amount needed for the visa. Actual living costs vary throughout Australia and may be higher than what is needed for the visa.
  2. Reduce Risk of Financial Distress: The increase is based on assumptions that international students who demonstrate compliance with this updated financial standard are better equipped to make well-informed decisions about their future endeavours and be less likely to be in financial distress in Australia.
  3. Prevent Visa Breaches: The increase also aims to reduce the likelihood that students will breach their visa conditions by working more hours than permitted.

financial-capacity-students-australia

How to present your financial capacity to study in Australia:

To present evidence of funds, the Australian government has suggested that it could be demonstrated by uploading the following documents:

 

  1. Income bank statements (at least 3 months before the visa application)
  2. Tax declarations (recent year)
  3. A letter from a financial institution stating your savings
  4. A letter from a financial institution If have been granted a Loan for studies 
  5. A letter from your chosen college if you have been granted a scholarship or financial aid
  6. A letter from a relative if it will act as a financial sponsor (contact us to have deeper information)

Remember all the financial documents you provide must be original or certified copies, and any documents not in English must be accompanied by an English translation.

 

Estimate your living costs

Knowing the average living costs in Australia is an important part of preparing for your studies. For an estimate of day-to-day living costs in Australia, use the Study Australia Cost of Living Calculator. 

These changes are designed to ensure that international students have a positive and enriching experience while studying in Australia.

In Australia Study we make sure that you go to Australia with the right study program and we will help you to gather all the necessary documents. Contact us!

 

Stay connected and get the latest updates by following us on social media.

 

 

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