New financial capacity thresholds announced for Student and Student Guardian Visa applicants
Applicants for Student Visas (Subclass 500) and Student Guardian Visas (Subclass 590) will need to demonstrate they can meet new, higher thresholds of financial capacity when lodging their applications from Friday 10th May 2024.
The new capacity threshold was introduced to align with the national minimum wage, reflecting the realistic requirement for students and/or their guardians to have a minimum standard of living while studying in Australia, and importantly to avoid situations leading to financial distress, breaching visa conditions by working beyond accepted limits, or being vulnerable to wage exploitation.
The Department of Home Affairs considers that students are engaged 75% of their time in study, and the remaining 25% of time is personal time for unrestricted work or returning home. Therefore, the funds that the applicant must demonstrate having access to upon entry to Australia represents 75% of the national minimum wage.
For example, the primary applicant must demonstrate access to the $29,710 pear year, up from $24,505 if submitting a Subclass 500 Student Visa on or after 10 May 2024. Thresholds for financial capacity to meet the costs of a spouse or defacto partner, dependent children, annual school costs, and personal income have also increased.
Any applications lodged before 10th May will be assessed under the financial capacity requirements in effect before 10th May.
We eagerly await the release of the Federal Budget on 14 May 2024 to see if there will be an increase to Student Visa application fees, a proposal flagged earlier this year by a leading Australian policy institute, as a means for the government to generate additional income which could be directed to cost of living relief.
For advice on migration options, contact us to make an appointment for an Initial Consultation and speak with an experienced lawyer. Please visit the Department of Home Affairs website and this website for the full list of changes.
This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact us at info@Ruppertlegal.com.au.
