Australia wants to change how it decides whether a student visa applicant has enough money and a genuine plan to study. On 30 October 2026 the Department of Home Affairs released a discussion paper, and Assistant Minister for International Education Julian Hill presented it at the Australian International Education Conference in Sydney. Submissions close on 23 November 2026, and the department stresses that no decisions have been made.
Why now
Refusals of offshore applications have stayed high, especially from South Asia. Hill said the refusal rate "is now impacting key markets" and that he wants grant rates and certainty to improve, even if that means higher financial standards. Renée Leon, vice-chancellor of Charles Sturt University, said Home Affairs data showed offshore higher education visa grants down by more than 40% year on year.
Four options for proving funds
- Hold 50% of the whole course's tuition and prescribed living costs in an Australian account in your own name for at least one month before lodging, released on a set schedule.
- Hold the same 50% for three months, without mandatory withdrawal limits.
- Hold 100% of first-year costs for three months, with managed release possible for some groups.
- Use recognised education finance, such as approved loans or scholarships.
Expected earnings from a job in Australia would not count. The required amounts themselves would not rise; the focus is on showing the money is genuine, accessible and sustainable.
A possible interim step for Evidence Level 3 countries
Until longer-term rules are set, primary applicants from Evidence Level 3 countries could have to show financial evidence when they apply, whatever their provider's level, generally with six months of transaction history. Support would normally come from the student, a spouse, parents or an approved supporter, and unsecured personal loans or loans not yet paid out would generally not be accepted.
Changes to the Genuine Student test
Ministerial Direction 106 would be replaced. New students would be judged on how credible their study plans are, continuing students more on their record in Australia, and completed transnational education could count in an applicant's favour. Financial capacity would be assessed separately.
Key points
- Home Affairs consultation opened on 30 October 2026; submissions close on 23 November 2026.
- Four options would require funds held in an Australian account or recognised education finance.
- Applicants from Evidence Level 3 countries may face stricter financial evidence first.
- Nothing is decided yet; the required amounts themselves are not planned to rise.
If Australia is on your list, talk to us before you pay any visa fee: we will review your financial documents and study plan and guide your application from start to finish.
Sources
- Consultation on proposed reforms to the Genuine Student requirement and financial capacity frameworkAustralian Department of Home Affairs · Oct 30, 2026
- Australia consults on student visa overhaul as refusals hit key marketsThe PIE News · Oct 30, 2026
- Australian bank accounts among proposed student visa reformsThe Koala News · Nov 2, 2026
Written by the Study and Work Abroad team in our own words from the sources above. Rules change often: before you apply, ask us to check the current rules for your case.
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