Australian student visa applicants will soon need to show higher savings

Starting from 1 October, international students applying for Australian student visas will be required to show minimum savings of $24,505. The federal government says the move aims to ensure international students have sufficient financial resources to avoid immediate employment-related stress.

Australian Bureau of Statistics have confirmed that in July 2023, there were 131,640 international students who arrived in the country. (Representative image) Source: EPA / RAJAT GUPTA/EPA/AAPImages

Key Points

• From 1 October 2023, international students will need to show evidence of $24,505 in savings, which is a 17 per cent increase on current levels.
• The government will apply additional scrutiny to high-risk cohorts and ask for additional documents to prevent fraud in the international students' applications.
• According to the Australian Bureau of Statistics, 131,640 international students arrived in the country in July 2023, an increase of 60,420 students on the same period last year.

The federal government recently disclosed that, starting from next month, international students will be required to show savings of $24,505, marking a 17 per cent rise from the current levels.

The government said the hike is a catch-up, as this figure had not been indexed since 2019.

This change will ensure students coming to Australia to study can afford to support themselves and will not face increased risk of exploitation due to an urgent need for employment.

Australian government

"International education is our fourth largest export – it’s essential that we maintain our global reputation for quality education. Our government has no tolerance for people who exploit students," Minister for Home Affairs Clare O’Neil said.

Home Affairs Minister Clare O’Neil (Right) Source: AAP / DEAN LEWINS/AAPIMAGE

There are concerns that many international students opt for less expensive vocational training or enter the workforce prematurely, and abandon their primary course of study after arrival.

The government said it has closed a loophole which allowed education providers to shift international students who have been in Australia for less than six months from genuine study to an arrangement designed to facilitate access to work in Australia.

Additional scrutiny will also be applied to high-risk cohorts and additional documents can be requested to prevent fraud in applications.

The government said it will also consult on possible regulations to set clear grounds for the use of suspension certificates, such as application rates with fraudulent documents and provider refusal rates. 

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The government will consider using its powers under Section 97 of the Education Services for Overseas Students Act (ESOS Act) to issue suspension certificates to high-risk education providers.

A suspension certificate means providers would not be able to recruit international students.

“There are also challenges in international education. As students have come back, so have some dodgy and unscrupulous players who are trying to take advantage of them," Minister for Education Jason Clare said.

Australian Minister for Education Jason Clare. Source: AAP / MICK TSIKAS/AAPIMAGE

The latest figures released by the Australian Bureau of Statistics show that 131,640 international students arrived in the country in July 2023, an increase of 60,420 students on the same period last year.

According to Abul Rizvi, a columnist and former official at the Department of Immigration, offshore student visa applications have consistently broken new records every month over the last 18 months.

Signage for the Australian Government Department of Home Affairs seen in Melbourne. Source: AAP / JAMES ROSS/AAPIMAGE

"Much of that has been driven by student visa applications from India. Associated with the phenomenal growth in student numbers, there have been extensive reports of fraud in the caseload, particularly from India," he said.

"The government had no choice but to act," he added.

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On the query of increasing the savings requirement, Mr Rizvi said, "The increase is based on indexation since 2019 and will have a marginal impact on offshore student visa applications."

"The cost of living in Australia has increased significantly in the last 12-18 months ... Not increasing the savings requirement in line with indexation would have been to mislead students on the cost of living in Australia," Mr Rizvi added.

Karishma Khanna, a 26-year-old international student residing in Geelong, shares Mr Rizvi's perspective.

Karishma Khanna is a 26-year-old international student.

"I received my student visa after demonstrating my ability to cover living expenses and tuition fees by presenting proof of financial reserves which exceeded $50,000," she said.

"I've observed numerous students facing financial challenges upon their arrival here, and having additional funds helps protect you from potential work exploitation."

Navsheen Kachroo, an international student currently in Adelaide, shares a similar sentiment as he searches for a suitable course for his brother.

Navsheen Kachroo is currently pursuing Masters of International Hospitality Management.

"Living expenses are very high and in fact it's higher than the new financial reserves requirement of over $24,000 reflect," he said, adding that the change will have little impact on his decision to bring his brother out as an international student.

According to Ravi Lochan Singh, head of education agency Global Reach, the minister's statement suggests that the government is apprehensive about a significant influx of insincere students who have exploited the streamlined student visa process to enter Australia.

"I welcome these changes though would hope that the students are barred from downgrading or switching institutions till one year of arrival in Australia unless the student has a no objection letter from the original university," he said.

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