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Understanding the Positive Impact of Australia’s Revised Financial Requirements

Understanding the Positive Impact of Australia’s Revised Financial Requirements

Every year thousands of students move from one country to another to fulfil their need for a better education, a good career and a promising future. The host country, on the other hand, makes the best effort to provide the best learning environment and living conditions to international students. One needs to have sufficient funds so there are no financial worries while pursuing their education and that there is no urgency in earning.

The Australian government recently updated the financial requirements for international students, and starting from May 10, 2024, they will be required to show more funds, that is AUD29,710. It is a result of the annual rise in the consumer price index (CPI) in Australia. Housing, education, and health services have seen the fastest rise as a result of inflation. Basic commodities such as accommodation, transportation, food and electricity have seen an annual rise from 8% to 25%. 

One of the primary requirements of anyone, accommodation, has seen a 25% surge. A rough estimate of the weekly cost of living in Sydney can be AUD644.  This expenditure comes when we are living in shared accommodation, use public transport often, eat out only twice a week, use a moderate mobile plan, and other basic services. Purchase clothes once a month at a moderate-priced place. This expenditure will rise if we increase the frequency of dining out, use our transport, and do more shopping.

Understanding the Changed Requirements

Before forming any misconceptions about the latest increase in financial capacity, we should understand what brought this change. The Australian national minimum wage is the primary factor that is considered in bringing this change, which comprises 75% of the proportion. This approach will make sure that the students will have sufficient funds throughout the year. 

Consumer price index is a key indicator of the cost of living in Australia, this is measured through the average change in prices of services and goods that is required to maintain an adequate standard of living. It determines the national minimum wage that a person living in Australia needs to be paid, from which the cost of living for international students is determined.

Here is a look at the financial capacity requirements before and after May 10, 2024.

Financial Capacity Requirement before May 10, 2024Financial Capacity Requirement after May 10, 2024
Primary applicantAUD24,505AUD29,710
Spouse or de facto partner of the student’s primary applicantAUD8,574AUD10,394
Dependent childAUD3,670AUD4,449
Annual school costsAUD9,661AUD13,502

Reduced Financial Stress for Students

Since the cost of living is rising globally, having sufficient funds will eliminate the financial concerns among students. As the pressure of financial burden is removed, international students will be able to concentrate on their studies better. This also means that students will not be in a hurry to start working as soon as they land in Australia. Plus, their choice of programme will be more tuned to the skills demanded by the country, and not just as a means to gain entry. Apply for an Australian study visa in the right manner, and talk to study visa consultants in Gurugram.

Better Security and Safety While Living in Australia

The financial security that will come with sufficient financial capacity will protect students from being exploited in the workplace. International students will not work out of the need for money but with the sole purpose of acquiring experience. Plus, they will not have to work in unfavourable work conditions, such as at lower wages or more working hours. The Australian government was aware of the problems faced by international students and brought changes accordingly.

Clearing Misconceptions

The increase in financial requirements gives the impression that Australia is deterring education exports. On the contrary, these changes aim to make living conditions tension-free for international students. Considerate as ever, Australia wants to provide the best learning environment to students coming from overseas.

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