Introduction

The financial capacity requirement for the Student visa (Subclass 500) is governed by section 65 of the Migration Act 1958 (Cth) and regulation 2.06B of the Migration Regulations 1994 (Cth), as further particularised in Legislative Instrument LIN 19/198 (as amended) and the current Ministerial Direction 106 (commenced 14 November 2025).

The requirement is not merely administrative; it is a core integrity measure designed to ensure that visa holders can support themselves without recourse to unauthorised employment or public funds, thereby protecting the fiscal sustainability of Australia’s international education sector and maintaining community confidence in the migration pathways.

For Indian nationals – who in 2024–25 constituted the second-largest cohort of Subclass 500 applicants and continue to face elevated evidentiary scrutiny due to historical non-compliance patterns – satisfaction of the financial capacity criterion has become one of the most frequent grounds for refusal under the Genuine Student framework introduced in March 2024 and reinforced by Ministerial Direction 115 (effective 14 November 2025).

This article provides a rigorous, regulation-by-regulation exposition of the financial requirements as they apply in November 2025, drawing directly on primary legislative sources and current Department of Home Affairs policy.

Legal Basis and Current Prescribed Minimum Amounts

Pursuant to Schedule 2, clause 500.214 of the Migration Regulations 1994 and the most recent amendment to the Migration (LIN 19/198: Evidence of financial capacity – student visas) Specification 2019, applicants must have “genuine access” to funds” that meet or exceed the following thresholds:

Living costs (12-month period)

• Primary applicant: AUD 29,710

• Spouse or de facto partner: AUD 10,394

• Each dependent child: AUD 4,449

These amounts replaced the previous figures (AUD 24,505 / AUD 8,296 / AUD 3,720) with effect from 10 May 2024 and remain current in November 2025. No further indexation has been announced for the 2025–26 program year.

Course fees Applicants must evidence payment of (or exemption from) the first 12 months’ tuition fees (or the full course fees if the course is 12 months or less) as shown on the Confirmation of Enrolment (CoE) or offer letter. Where packaged courses are involved, all components must be covered.

Travel costs

• Applicants from Asia (including India): AUD 3,000

• Applicants from Africa or Americas: AUD 2,000–2,500 (varies by region)

School fees for school-age dependents (5–18 years) Minimum AUD 13,502 per child per year (in addition to the living cost component for the child). This is a separate head of expenditure and cannot be offset against the standard dependent child amount.

Overseas Student Health Cover (OSHC) Evidence of policy commencement and payment (or reciprocal health care agreement exemption) for the proposed duration of stay is mandatory, though not formally counted within the “financial capacity” quantum; failure to attach OSHC nevertheless results in refusal.

Important: The former “annual income option” (AUD 87,856 for single / AUD 102,500 with family), which existed prior to 10 May 2024, has been permanently abolished. Only evidence of existing funds or disbursed education loans is now acceptable.

Genuine Access to Funds – The Core Legal Test

The phrase “genuine access” is not defined in the Act or Regulations but has been judicially and administratively interpreted (e.g., in decisions of the Administrative Appeals Tribunal and Federal Circuit Court) to require that:

1. The funds are presently available and unencumbered;

2. The applicant (or sponsor) has legal entitlement to the money;

3. The money will remain available throughout the visa period;

4. The source of funds is legitimate and adequately explained.

Departmental policy (PAM3 and internal case officer guidelines) now places particular weight on savings history. Funds deposited less than 3 months prior to application attract intense scrutiny; deposits less than 28 days old are frequently treated as non-genuine unless exceptionally well documented (e.g., proceeds of property sale with valuation, stamp duty receipts, and bank transfer trail).

Acceptable Forms of Financial Evidence (Legally Recognised)

The Department accepts only the following instruments as prima-facie satisfactory (subject to case-by-case assessment):

a) Money deposits or fixed deposits held by the applicant, spouse/de facto partner, or parents/legal guardians for a reasonable period (preferably 3–6 months savings history);

b) Education loans from recognised financial institutions in India (State Bank of India, HDFC Credila, Axis, ICICI, Union Bank, etc.) or Australian banks where the loan has been fully sanctioned and disbursed (sanction letter alone is insufficient post-2024 policy tightening);

c) Government loans or scholarships (including Education Future, Inlaks, etc.);

d) Financial support from approved sponsoring relatives (only parents, grandparents, siblings, or spouse – aunts/uncles/cousins are no longer accepted since the 2024 policy update).

Evidence must include:

• Bank statements covering at least 3 months (6 months preferred for Indian applicants in high-risk profiles);

• Loan sanction + disbursement statement + collateral documents (if secured);

• Relationship proof (birth certificate, Form 956A if agent-assisted);

• Income Tax Returns/Agricultural land records (for parental sponsorship) to demonstrate capacity to maintain funds.

Fixed deposits that mature after visa lodgement are acceptable only if accompanied by a bank letter confirming premature encashment is permitted without substantial penalty.

Special Considerations for Indian Applicants in 2025–26

Indian nationals are subject to heightened scrutiny under Ministerial Direction 106 (effective 14 November 2025), which explicitly prioritises processing of applications from low-immigration-risk providers but simultaneously increases evidentiary demands for applicants from higher-risk countries.

In practice, this has translated into:

• Mandatory provision of financial evidence for almost all Indian applicants (the Document Checklist Tool now rarely waives it for Indian passports);

• Rejection rates exceeding 40% in certain months of 2025 where funds showed sudden large deposits without documented source (e.g., agricultural sale, maturity of long-term investments);

• Particular suspicion of “money lending” arrangements or third-party fixed deposits from non-relatives;

• Increased weight given to consistency between declared funds and parental income/wealth (ITR-3 years + Form 16 + agricultural 7/12 extracts frequently requested via s 57 “natural justice” letters).

• Case officers routinely cross-check funds against living standards in the applicant’s home region; a Punjab farmer’s son showing AUD 120,000+ with parental income below ₹15 lakh p.a. will almost certainly trigger refusal unless exceptionally strong source-of-funds evidence.

Common Grounds of Refusal Relating to Financial Capacity (Administrative Appeals Tribunal & Federal Court Precedents 2024–2025)

1. Insufficient quantum or failure to cover full 12 months + tuition + travel;

2. Funds held in non-recognised institutions or cryptocurrency wallets;

3. Sudden lump-sum deposits without corroborative evidence;

4. Loan sanction letter only (without proof of disbursement);

5. Reliance on fixed deposits maturing after proposed course commencement without encashment undertaking;

6. Inconsistent financial narrative in the Genuine Student response (e.g., claiming family business income but showing negligible tax paid).

Conclusion

The financial capacity requirement under clause 500.214 constitutes a non-waivable, time-of-decision criterion. Failure to satisfy it engages mandatory refusal under s 65 of the Migration Act 1958, with limited merits review rights and a 3-year re-application bar in certain circumstances.

For Indian applicants in late 2025, the combination of Ministerial Direction 115’s processing hierarchy, the abolition of the annual income pathway, and rigorous “genuine access” testing has rendered the financial criterion the single most determinative factor in visa outcome.

Applicants who present funds with demonstrable 6-month history, disbursed education loans from scheduled banks, and a coherent financial narrative aligned with their Genuine Student response achieve approval rates in excess of 85% even in the current stringent environment.

Those who treat the requirement as a mere box-ticking exercise continue to contribute disproportionately to India’s elevated refusal rate.

Compliance with the precise legal thresholds and evidentiary standards outlined above is therefore not merely advisable – it is indispensable to lawful grant of the Subclass 500 visa.