Financial Capacity Guide for Studying in Australia

Overview

Demonstrating financial capacity is a crucial requirement for obtaining a Student visa (Subclass 500) for Australia. This guide outlines the minimum financial requirements, acceptable evidence, and calculation methods based on the Migration (LIN 19/198) instrument.

Minimum Financial Requirements

Living Costs (Annual Rates)

Primary Student (12 months): AUD 29,710

• If staying less than 12 months: Pro-rata calculation required

Family Members:

• Spouse/De facto partner: AUD 10,394 per year
• Dependent child: AUD 4,449 per year

School Fees for Dependents

Annual school costs: AUD 13,502 per child

• Applies to school-age dependents
• Pro-rata calculation for stays less than 12 months

Exemptions from school fees:

• PhD students with children enrolled in government schools (fees waived)
• Foreign Affairs/Defence sponsored students with children in government schools (fees waived)

Course Fees

You must demonstrate funds to cover:

• Less than 12 months study: Full course fees minus amounts already paid
• More than 12 months study: First 12 months of course fees minus amounts already paid

Travel Expenses

Estimated travel costs:

• From East/Southern Africa: AUD 2,500
• From West Africa: AUD 3,000
• From anywhere else outside Australia: AUD 2,000
• If applying in Australia: AUD 1,000 (AUD 1,500 if returning to Africa)

Calculation Methods

Pro-rata Calculation

For stays less than 12 months:

1. Divide annual amount by 365 days
2. Multiply by number of days staying in Australia

Formula: (Annual cost ÷ 365) × Days in Australia

Example Calculations

Example 1: Single student, 10-month course

• Living costs: (AUD 29,710 ÷ 365) × 304 days = AUD 24,742
• Course fees: AUD 15,000 (minus AUD 5,000 paid) = AUD 10,000
• Travel: AUD 2,000
• Total: AUD 36,742

Example 2: Student with spouse, 18-month course

• Student living costs (12 months): AUD 29,710
• Spouse living costs (12 months): AUD 10,394
• Course fees (12 months): AUD 16,667
• Travel (both): AUD 4,000
• Total: AUD 60,771

Acceptable Forms of Evidence

1. Financial Institution Deposits

• Bank statements showing sufficient funds
• Term deposits
• Savings accounts

2. Government or Financial Institution Loans

• Education loans
• Government-sponsored loans
• Must show loan agreement and disbursement terms

3. Official Income Documentation

Parent/Partner Income Requirements:

• No family members: Minimum AUD 87,856 annual income
• With family members: Minimum AUD 102,500 annual income

Required documentation:

• Official government income documents (tax assessments)
• Must be less than 12 months old
• Combined parental income acceptable
• Bank statements NOT accepted

4. Scholarships and Financial Support

• Government scholarships
• Institution scholarships
• Sponsorship letters from approved organizations

5. Special Categories

AASES Form:

• For secondary exchange students
• Acceptance Advice of Secondary Exchange Student form

Department Letters:

• Foreign Affairs students: Letter from Department of Foreign Affairs and Trade
• Defence students: Letter from Department of Defence

Proving Genuine Access to Funds

If Someone Else Provides Funds

You must provide:

• Evidence of relationship to fund provider
• Their identity documents
• History of financial support provided
• If business-related: proof of operating business

For Loans

Provide evidence of:

• Security used for loan
• Loan terms and conditions
• Ability to cover ongoing costs
• Best evidence: Proof of loan disbursement

For Deposits

• Explain source of deposited money
• Provide supporting documentation

Document Requirements

Essential Documents

• Passport biodata pages
• Bank statements or financial institution letters
• Income tax assessments (if using income method)
• Loan agreements (if applicable)
• Scholarship letters (if applicable)
• CoE (Confirmation of Enrolment)

Family Applications

• Include costs for all family members
• Separate documentation for each person's expenses
• Marriage/relationship certificates
• Birth certificates for children

Important Notes

Cost vs. Reality

• These are minimum requirements for visa purposes
• Actual living costs in Australia are often much higher
• Research your specific city's cost of living
• Don't rely on work income to support yourself

Regional Variations

• Living costs vary significantly between cities
• Sydney and Melbourne are more expensive
• Regional areas may be more affordable
• Factor in accommodation type (shared, independent, on-campus)

Work Limitations

• Students can work maximum 48 hours per fortnight during study
• Cannot work before course commences
• Work income should supplement, not replace, demonstrated funds

Subsequent Entrants (Family Joining Later)

Family members applying separately must show funds for:

• Primary student's remaining living costs
• Their own living costs (12 months)
• Remaining course fees
• Travel expenses for all subsequent applicants

COVID-19 Fee Waivers

Eligible circumstances:

• Deferred study due to travel restrictions
• Forced part-time study reduction
• Unable to complete work-based training

Not eligible:

• Course failure
• Personal deferral reasons
• Voluntary study load reduction

Tips for Success

1. Apply Early

• Allow time for financial document preparation
• Exchange rates can affect calculations
• Processing times vary by country

2. Keep Detailed Records

• Maintain all financial transaction records
• Keep receipts for payments made
• Document fund sources clearly

3. Professional Advice

• Consider migration agent assistance
• Understand your specific situation
• Ensure all documents meet requirements

4. Plan for Contingencies

• Have additional funds beyond minimums
• Consider emergency expenses
• Factor in potential study extensions

Common Mistakes to Avoid

1. Insufficient documentation of fund sources
2. Outdated financial statements (must be recent)
3. Incorrect pro-rata calculations
4. Missing family member costs
5. Not accounting for school fees for dependents
6. Using unofficial income evidence
7. Assuming work income will cover expenses

Useful Resources

• Cost of Living Calculator: Study Australia website
• Exchange Rates: Reserve Bank of Australia
• Education Costs: Individual institution websites
• Regional Living Costs: State government websites

This guide is based on Migration (LIN 19/198) instrument current as of May 2024. Requirements may change, so always verify current information with official sources or qualified migration professionals.