Attention all international students! The Australian Government increased the amount of sufficient funds to be demonstrated in order to obtain a student visa.
Discover the recent announcement from the Australian Government on the amount of funds to demonstrate to apply for a Student Visa!
Important news as of October 1.
On August 26, 2023, the Australian Government announced an increase in the amount of sufficient funds that international students will need to demonstrate to obtain a student visa.
As a student or professional looking to broaden your career prospects and study in Australia, it is important to consider the amount of funding you will need for this experience. Today we will go into detail on this topic. You will leave this article with all the information you need about demonstrating sufficient funds.
We invite you to learn more details below!
Increase in the amount of sufficient funds to be demonstrated in Australia
The financial requirements for a student visa (subclass 500), i.e. the amount of savings to which students must demonstrate they have access, were previously set at A$21,041. This requirement has not been indexed since 2019 and the Australian Government this year, identified an increase necessary to reflect higher living expenses in Australia.
As we shared earlier, on August 26, 2023, the Australian Government announced that as of October 1, 2023, international students will be required to demonstrate an amount of A$24,505, which is a 17 percent increase from current levels.
How much money must be demonstrated?
Firstly, it is important to note that proof of access to sufficient funds in Australia is not mandatory, but must be declared on the Visa application. However, it is possible that migrations may request it depending on several factors such as: the duration of the studies, whether or not to apply with a partner, whether to apply within or outside Australia, the total amount of studies to be undertaken and the amount paid in advance to the institution. The best practice is, in cases where it is possible, to demonstrate it proactively, although it is not a mandatory requirement, BUT DON’T WORRY! ✋🏼 There are two ways and we will detail the estimated amounts depending on your application:
(1) Funds in a bank account: It is possible to demonstrate funds through a bank account with at least $2,042 AUD per month of study (up to one year = AUD$24,505 ), plus the remaining balance of the total course fee (up to one year), plus a relocation fee of $1,000 AUD for applicants within Australia or $2,000 AUD if they are outside, the more $720 AUD per month (up to one year) for the partnerif applicable.
Now, these are the amounts you must have, if you are going to study one year or more than one year in Australia. If your plan is to obtain a student visa for a shorter period of time (6 months, for example), the amount of funds to demonstrate drops considerably. In that order of ideas, we must take the AUD$24,505 and divide it in 12 months; this way we will know how much money must be demonstrated for each month that you are going to be in the country.
(2) Annual income: another way to demonstrate sufficient funds is through annual income in excess of $72,800 AUD per year or $84,933 AUD per year if applying with a partner. Invoices, accountant’s statements, pay stubs, tax returns are useful to prove this. Even the income of the student’s immediate family members can be added and combined (we will develop this point later).
The most important thing with the demonstration of sufficient funds in Australia is to prove that it is an amount of money to which you have easy and quick access.
For this very reason, it is NOT possible to prove solvency with apartments or vehicles for example, because in case of emergency you will have to sell such assets, and you never know how long this process may take.
So how do I prove sufficient funds in Australia? As mentioned above, there are two ways, as you can prove it with money deposited in a bank account, or through annual income by attaching documentation such as pay slips.
The money for the Economic Solvency can also come from educational loans, free investment loans, etc. For which it is necessary to show the relevant documentation and in addition, it is necessary to prove that there will be someone responsible for the payment of such credit while you are in Australia.
Possibility of demonstrating funds through a Sponsor
These two forms of proof mentioned above do not necessarily have to be in your name. Since there is the possibility that a direct relative of yours or your partner’s (parents or siblings) can be your sponsor (or sponsor). For this, ACE Australia will help you write a letter in which your family member commits to help you financially if you need it!
In conclusion, the demonstration of access to sufficient funds is not mandatory, but it is necessary to declare it in the application. Migrations reserves the right to request the demonstration of the declared funds at any time and while this is unlikely, there are several factors previously mentioned that influence this probability. From this point, the important thing is to be able to define which of the two ways is more convenient to demonstrate in case it is requested. Based on that, if it is necessary to make a sponsorship letter, ACE Australia will help you to do it!
How do you know if you need to prove that you have sufficient funds?
While it is a requirement to declare that you have sufficient funds, you may NOT be required to demonstrate these funds at the time of applying for your Australian Student Visa. We will go into detail about this in the following.
As we mentioned before, the first thing you should know is that the Department of Home Affairs will ALWAYS ask you to declare in your application how much money you have to pay for your stay in Australia.
However, as for the demonstration of such funds, according to the country and nationality of which you hold a passport, there are three ways:
- That the Department of Home Affairs takes your word for it and you can apply for the student visa directly.
- The Department of Home Affairs requires you to prove with official documentation (bank certifications), that you really have that money; and once you show those documents they will let you apply for the visa.
- That you apply for your Student Visa and that after you apply, the Department of Home Affairs will also ask you to demonstrate sufficient funds.
And why does the Immigration Department “define whether or not to demonstrate sufficient funds” according to the country and nationality you have?
Because the Australian Government assigns each country an Immigration Risk Rating. This rating depends on factors such as the country’s political and economic stability in recent years, among many other things.
Among these requirements, you will find if you are required to demonstrate the Economic Solvency with official documentation. If you are interested in knowing what rating is currently assigned to your country, contact us and we will gladly advise you!
If you liked this article and are looking for personalized advice! At ACE Australia we can help you and provide you with all the information you need on a case-by-case basis!
In turn, in our ACE Australia website, we have a section specially designed for different benefits that you can access, and depending on the sector in which you are interested in studying you can find different articles about the advantages of studying in sectors such as Health , Engineering , Marine Sciences among others.
We invite you to contact us for the best updated information available regarding the demonstration of sufficient funds. Get ready to #LiveTheExperience.
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