Australia is considering major changes to its student visa system, including stricter financial requirements for international students. The proposed measures could require applicants to deposit tuition fees and living expenses into Australian bank accounts before applying for visas.
The Department of Home Affairs has launched a public consultation to gather feedback on the proposed changes. The move comes amid concerns over increasing student visa rejection rates, particularly among applicants from South Asian countries.
According to reports, the consultation began on October 30, 2026, and will remain open until November 23, 2026. The government will review public feedback before making a final decision.
Proposed Financial Requirements for International Students
The Australian government is considering four possible options to strengthen financial checks for student visa applicants.
Under the first proposal, students would need to deposit 50% of their total tuition fees and living expenses for the entire course. The funds would have to remain in an eligible Australian bank account for at least one month. Restrictions would also apply to withdrawals.
The second option would require the same 50% deposit for three months. However, applicants would not face withdrawal restrictions under this proposal.
The third option would require students to deposit 100% of their first-year tuition fees and living expenses. The amount would need to remain in an Australian bank account for three months. Possible restrictions could apply to accessing the funds.
The fourth option would allow students to prove their financial capacity through approved education loans, scholarships, personal savings, or combined funding sources. Limited exemptions from transferring money into Australian accounts could also be available.
The proposals would also require all international students to submit financial evidence with their visa applications. This requirement would apply regardless of their education provider’s Evidence Level classification.
Additional Financial Checks for High-Risk Countries
Applicants from countries classified as Evidence Level 3 could face additional financial verification requirements.
These applicants might need to provide bank statements covering at least six months of transactions. The government is also considering stricter checks on education loans.
Secured and government-backed loans could receive preference over unsecured personal loans. However, the proposed measures would not increase the existing minimum financial capacity requirement.
Australia is also considering changes to its Genuine Student assessment process. The revised assessment could place greater importance on academic records, course selection, and previous educational progress.
High Visa Rejection Rates Raise Concerns
The proposed changes follow growing concerns about student visa refusals. Assistant Minister for International Education Julian Hill discussed the issue at the Australian International Education Conference 2026 in Sydney.
He acknowledged that high rejection rates were discouraging genuine international students from applying. Some applicants also fear that an Australian visa refusal could negatively affect future applications to other countries.
Hill rejected claims that the increasing refusals were connected to migration targets. He said authorities were concerned about applicants who could not realistically afford their education without depending on long-term migration.
Meanwhile, Australian universities have raised concerns about declining student visa approvals.
Charles Sturt University Vice-Chancellor Renée Leon reported a significant drop in offshore higher education student visa grants. Government figures showed that approvals had fallen by more than 40% compared with the previous year.
She also called for clearer eligibility requirements before students pay the $2,500 visa application fee.
Government Yet to Finalise Student Visa Changes
The Australian government has not approved any of the proposed financial requirements yet. Officials will consider feedback received during the public consultation before deciding on the next steps.
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International students planning to study in Australia should follow official announcements. Any approved changes could affect financial preparations and student visa application procedures.
