Australia savings cap

Acting as an obstacle for the horde of students aspiring to study in Australia is the country’s latest move to significantly increase the financial requirements for obtaining a student visa.

This move comes in an attempt to manage record-breaking migration levels seen after COVID-19 restrictions were lifted in 2022 and address concerns about exploitation in the education sector.

The new requirements, coming into effect on May 10, 2024, will require international students to demonstrate sufficient financial resources to cover their living and study expenses.

This translates to students now needing to show a minimum of A$29,710 (₹16.30 lakh) in savings, an increase from the previous A$24,505. This marks the second increase in seven months.

Furthermore, in March, the government also raised the English language requirements for student visas. In addition, it also notified 34 educational institutions to cease taking admissions of ineligible and unqualified students.

Australia’s minister for home affairs, Clare O’Neil, warned to take action, slapping heavy penalties, if the institutions fail to abide by this notification.

Foreign students adding to Australia’s kitty

These developments tighten Australia’s grip on its international education sector, which makes a significant contribution to the country’s economy.

In 2022–23, the sector was valued at A$36.4 bn. However, the rising student numbers have put pressure on the nation’s rental costs and other infrastructure. Net immigration rose by 60% to 5,48,800 by the end of September 2023.

Also read:

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New Australian visa rules: Higher English proficiency, stricter visa inspection