More government action in the student visa space is imminent, with the announcement today that the financial capacity requirement will go up from 10 May (in two days).
TKN reported on 3 May how this requirement was made public and then reverted within 24 hrs. It is now back on the agenda.
In a announcement put out by the Department of Home Affairs earlier today, it states “The financial capacity requirement has been updated to align with a proportion (75 per cent) of the national minimum wage. This will better indicate the amount of money considered reasonable to provide a minimum standard of living while studying in Australia.”.
This amount was AU$24,505. Six months ago, it was AU$21,041. On 10 May it will go up to AU$29,505. The Koala calculates this as a 40.2 per cent increase in 12 months.
This makes Australia the highest financial requirement for visas. ICEF Monitor compared cost requirements for visa purposes across a range of destination counties with possibly the exception of the USA and South Korea. ICEF states:
- Australia:AUS$24,505 (US$15,690)
- Canada:CDN$20,635 (US$14,930)
- China:USD$2,500 per year of study
- Czech Republic:3,130 CZK (US$133) per month, so assuming a stay of one year, US$1,600
- Finland:£590 per month (US$630), so assuming a stay of one year, US$7,560
- France:£615 (US$655) per month of study (so assuming a study duration of nine months, US$5,895)
- Germany:£11.208 (US$11,952) for one year
- Ireland:€10,000 (US$10,680) immediately available and the same amount for each subsequent year of study
- Italy: £350 (US$375) per month of study (so assuming a study duration of nine months, US$3,375)
- Japan:2 million Japanese yen (US$12,970) for one year
- Netherlands:€14.700 (US$15,685) for one year
- New Zealand:NZD$20,000 per year (USD$11,840)
- Portugal:€820 per month (US$875), so assuming a study duration of 12 months, US$10,500
- Singapore:8,400S$ ($6,175)
- South Korea:US$20,000
- Spain:€600 (US$640) per month (so assuming a study duration of nine months, US$5,400)
- Switzerland: HF 21,000 (US$23,070) per year and the same amount for each subsequent year
- UAE: Depends on the university – for Abu Dhabi University, the proof of funds is US$15,000
- UK:Just over £1,100 (US$1,660) per month of study (so assuming a study duration of nine months, US$14,940)
- US:New F-1 students must prove that they have funds for the first year of study (some US embassies will ask for proof of funds for the duration of a programme). For those accepted to highly ranked institutions (e.g., University of California, Santa Barbara) – proof of funds can run over US$70,000 for the first year of a programme.
TKN used a currency calculator to roughly map Australia’s new requirements. It is US$19,390.
In addition, the annual income requirement has also increased which will act as an additional hurdle.
One saving grace for students is that the government has provided a commitment that financial capacity requirements will be judged as per when the application was received. The announcement states, “We will assess applications lodged before 10 May 2024 under the financial capacity requirements in effect at the time of application.”
More information from the department, including a table with increases across all metrics, can be found here.
