Australia remains one of the most sought-after destinations for international students, thanks to its world-class education, multicultural society, and post-study opportunities. However, a recent update by the Australian Government has introduced stricter financial requirements for international students applying for a Subclass 500 Student Visa.
What Has Changed?
Effective May 10, 2025, the minimum financial threshold that international students must demonstrate to obtain a student visa has been increased. This update aligns with the rising cost of living in Australia and ensures students have adequate funds to support themselves during their stay.
Previously, the minimum living cost requirement was AUD $24,505 per year. This has now been raised to approximately AUD $29,710, reflecting current economic realities and inflation. This figure excludes tuition and travel costs, which must also be accounted for in the visa application.
New Financial Proof Requirements (As of May 2025)
| Expense Category | Previous Requirement | New Requirement (2025) |
| Living Costs (per year) | AUD $24,505 | AUD $29,710 |
| Tuition (12-month estimate) | Varies by course | No change |
| Travel to Australia | AUD $2,000 – $5,000 | No change |
| Total Recommended Funds | ~AUD $32,000+ | ~AUD $38,000+ |
Why the Increase?
The Department of Home Affairs has stated that the changes are intended to:
- Ensure students are financially secure, reducing the risk of exploitation or reliance on illegal work.
- Better reflect the actual cost of living, especially in major cities like Sydney and Melbourne.
- Support genuine temporary entrants, ensuring only those who can meet Australia’s standards of financial preparedness are granted visas.
How Does This Impact Applicants?
For aspiring students, this means:
- You must show bank statements, loan letters, or sponsorship evidence covering the updated financial threshold.
- Applications may take longer due to increased scrutiny of financial documents.
- It may be more difficult for students from low-income backgrounds to qualify without a scholarship or financial backing.
Students already in Australia or those who applied before the update are not affected by this change.
Visa Smile International’s Advice for Students
At Visa Smile International, we strongly recommend:
- Start preparing financial documents early — ideally 3–6 months before applying.
- Consider on-campus jobs and scholarships to ease the financial burden.
- Consult a qualified visa expert to ensure your application meets the new criteria.
- Explore regional study options, where living costs may be lower and post-study work rights are extended.
Need Help?
If you’re planning to study in Australia and are unsure about how the new visa financial requirements affect you, our team at Visa Smile International is here to help. We offer expert guidance on course selection, admissions, financial documentation, and complete visa support.
Book a free consultation today and make your Australian education journey stress-free.