Australia Reviews Student Visa Financial Evidence Requirements—Proposals Include Mandatory Australian Bank Account

Consultation Period and Background

The Australian Department of Home Affairs released a consultation paper on October 30 to reform student visa assessment criteria. The proposals cover revisions to both the method by which student visa applicants demonstrate financial capacity and Ministerial Direction 106, which governs Genuine Student assessment criteria. The government has not yet made any decisions and is accepting submissions until November 23.

Parliamentary Secretary for International Education Julian Hill stated at the Australian International Education Conference (AIEC) held in Sydney in 2026 that rejection rates for offshore student visa applications continue to rise, particularly severely in South Asian regions. Hill said, "While the government will not abandon assessment integrity, Navitas data and market feedback show that rejection rates are affecting major markets and actively deterring the students we most want to attract."

Australian Bank Account Deposit Requirement Proposal

The core of this consultation is shifting from the current document-based assessment approach to a standardized and verifiable financial evidence method. The first three of four proposed models all require applicants to deposit funds in their own name in an Australian bank account before applying for a visa.

The first model requires holding 50% of total tuition and living expenses for a minimum of one month, with withdrawals allowed according to a set schedule. The second model requires the same amount but held for three months, with no withdrawal restrictions. The third model requires 100% of first-year tuition and living expenses held for three months, with managed withdrawal arrangements possible for specific groups.

The fourth model creates a controlled pathway allowing requirements to be met through approved education loans, scholarships, personal funds, or combinations thereof. Direct use of approved financial products without first transferring to an Australian account may be permitted only in limited cases.

All four models require financial evidence at the time of visa application, regardless of the educational institution's Evidence Level setting. They also require verification of the source, ownership, accessibility, and sustainability of funds. Income that can be earned through work in Australia is not recognized as a substitute for essential tuition and living expenses.

Interim Measures for Evidence Level 3 Country Applicants

Interim measures are also under consideration targeting primary applicants from countries classified as Evidence Level 3. These students may be required to submit financial evidence at the time of application regardless of their educational institution.

Deposits must generally show six months of transaction history, and financial support must generally come from the student, spouse, parents, or other approved sponsors. Secured loans or government-guaranteed loans and approved education finance products are preferred, while unsecured personal loans or loans not yet executed are generally excluded.

The proposals do not increase the amounts students must currently demonstrate. Instead, they focus on proving that funds are genuine, accessible, and sustainable.

Ministerial Direction 106 Amendment Direction

The consultation paper also proposes changes to Ministerial Direction 106. Different considerations would apply to students commencing new courses versus those continuing or returning to studies, with decision-makers examining evidence of the proposed course's credibility and previous studies and progress.

The amendments would reduce reliance on formulaic Genuine Student statements and allow studies completed through credible transnational education pathways to be considered positively, provided applicants can demonstrate genuine progress and good outcomes.

Hill told AIEC that the government wants regulations that more closely reflect visa application assessment practices. He stated, "Even if we raise financial standards and reduce the pool of prospective students, we want to improve approval rates and provide greater certainty to everyone."

Recently Implemented Integrity Enhancement Measures

This consultation came several weeks after recently enacted student visa integrity enhancement measures took effect. The new measures restrict most student and graduate visa holders from adding family members to visas and strengthen onshore application, course change, and academic progress regulations.

While Hill defended these measures as necessary to curb visa misuse and the growth of "permanently temporary" migrants, he acknowledged transitional impacts across the education sector. For students who must apply offshore to complete their studies, he said the Department has directed decision-makers to give highest priority to complete and clear applications, with a target processing time of five days.

Charles Sturt University Vice-Chancellor and Universities Australia Board Member Renée Leon posted on LinkedIn following the consultation paper's release, stating that Department data shows offshore higher education student visa approvals declined by more than 40% year-over-year. Leon said, "Students need greater clarity on whether they will meet visa requirements before spending $2,500 on a visa application," while adding support for the government's integrity enhancement objectives.