Australia Tightens Visa Norms for International Students with Increased Savings Requirement

The Australian government has implemented new regulations for international students applying for a visa, taking effect on Friday, May 10th. According to the updated guidelines, the minimum amount of savings required to enter the country on a student visa has been significantly increased. The Department of Home Affairs and Immigration stated in a press release that the financial capacity requirement has been revised to align with 75% of the national minimum wage. This implies that international students must demonstrate savings equivalent to 75% of the national minimum wage. The government has established these new standards to ensure a minimum standard of living for foreign students studying in Australia. The government’s statement further explains that this proportion acknowledges that students are out of course session for 25% of the year, during which time they may return home or have unrestricted work access. Indian students aspiring to study in Australia and those already pursuing academic degrees in the country must demonstrate savings of at least A$29,710 (approximately 16,29,964), which equates to 75% of the national minimum wage, to be eligible for a student visa. The press release further noted that applications submitted before May 10, 2024, will be assessed under the financial capacity requirements in effect at the time of application. The latest development follows the government’s recent tightening of student visa rules to reduce the overall inflow of migrants. The previous adjustment to the minimum savings requirement was implemented seven months ago. Last October, the minimum savings amount was raised from A$21,041 (approximately 11,54,361) to A$24,505 (approximately 13,44,405). Australia’s Home Affairs Minister, Clare O’Neil, emphasized that the nation is significantly decreasing migration levels outside of war or pandemic situations. He highlighted that Australia is experiencing the most significant decline in migration numbers in its history. The recent modifications to visa policies are intended to address the rental housing shortages that emerged in the country following the lifting of COVID-19 restrictions in 2022.