Australia Announced Significant Increase in Fund Requirement for Student Visa Application

The Australian Budget was recently announced, and the minimum fund requirement was pushed up to AU$ 29,710 from AU$ 24,505, implementing a 21% increase. There is also a proposal to increase the application cost for international students' visas, coming from AU$ 710 (currently significantly more than the costs in both Canada and the US) to AU$ 2,500, is being given serious consideration by the Australian government.

The industry is adapting to the news that the federal government has increased the necessary financial needed by foreign learners who seek an Australian study visa—the second rise in less than a year—while it awaits word on whether a fee increase will be included in the budget. Primary applicants must demonstrate a balance of a minimum of AU$ 29,710 as of May 10, 2024, which is a 21% increase over the previous threshold of AU$ 24,505. In contrast, this new threshold is roughly AU$ 5,000 more than what students must demonstrate when applying for a study permit in Canada. According to the Australian government, the refreshed minimum funds threshold will more accurately reflect the amount of money deemed necessary to maintain an adequate standard of existence while studying in Australia, as it corresponds with roughly 75% of the national minimum wage.

While the Australian home department takes it as the increasing value of the Australian Education System, and in accordance with their migration strategy, as they say, they want only elite minds on their shores. Others have come in to criticize the new law heavily as visa rejections are at an all-time high, and on top of that, the visa application fee is almost 8 times that of Canada. This will only lead to students looking in different directions and taking top talent away from Australia, as per some notable commentators.

It is undeniable that some Australians, particularly those who are impoverished and politicians who are the target of their ire, find the appearance of an increase in the application fee appealing. However, many note that a significant increase in chargeable application fees would quickly convince prospective students to choose other locations, particularly at a time when the student visa rejections are skyrocketing.

The Australian government still believes that the fee hike will ensure that international students with caliber will still choose Australia, while eminent commentators and people of repute involved in the field have a very pessimistic view about the situation, citing that such steep costs can drive even the best talent away and force them to look at alternative destinations.