Australia Considers Tougher Student Visa Financial Rules, Including 50% Full-Course Funding Requirement

November 2, 2026: Australia is considering significant changes to its Student visa system that could require international applicants to provide stronger and more verifiable evidence that they have enough money to cover their studies and living expenses.

The Australian Department of Home Affairs has opened a consultation on possible reforms to both the Genuine Student requirement and the financial capacity framework.

Importantly, these are proposals, not rules currently in force. The department explicitly states that no decisions have been made, and feedback will be used to advise the Australian government on whether reforms should proceed.

Four Financial Models Being Considered

The official consultation paper sets out four illustrative models for strengthening financial requirements.

Option 1 – Managed 50% Model: Applicants could be required to demonstrate 50% of total tuition and prescribed living costs for their entire course or package of courses. The money would be held in an eligible Australian account in the applicant's name for at least one month before the visa application, with funds released according to a prescribed schedule.

Option 2 – Flexible 50% Model: Applicants would again need 50% of total tuition and prescribed living costs for the full course, but funds would need to remain in an eligible Australian account for at least three months, without a mandatory release schedule.

Option 3 – First-Year Assurance: Applicants could instead be required to demonstrate 100% of tuition and prescribed living costs for the first 12 months, or the remaining course period if it is shorter. Funds would generally be held in an eligible Australian account for at least three months before applying.

Option 4 – Recognised Education Finance: A separate pathway could allow prescribed costs to be covered through recognised financial institutions, personal funds or a combination, subject to stronger verification and safeguards.

Australian Bank Account Could Become Important

One of the biggest potential changes is the proposed use of an eligible Australian bank account or prescribed financial product.

Under the first three models, applicants would ultimately have to hold the required funds in an Australian account in their own name. The department acknowledges that issues such as opening accounts before arrival, identity verification, fees, exchange rates, privacy and refunds would need to be addressed before such a system could operate.

This means the Australian-account proposal should not be reported as an existing requirement.

Tougher Checks for Evidence Level 3 Countries Also Considered

Australia is separately considering an interim measure for primary applicants from Evidence Level 3 countries while longer-term reforms are developed.

Under this proposal, all primary applicants from those countries could be required to provide prescribed financial evidence when lodging their visa application, regardless of the education provider's Evidence Level.

The existing prescribed financial amounts would initially remain unchanged. Instead, the focus would be on improving the quality, source, history and verifiability of the funds.

Six Months of Bank Transaction History Could Be Required

For applicants covered by the possible interim measure, deposits could need to be supported by at least six months of transaction history, with longer histories potentially required in higher-risk cases.

Financial support would generally be limited to the applicant, spouse, parents or another prescribed supporter, with evidence needed to demonstrate the relationship, ownership, source and continuing availability of the money.

The proposal also says unsecured personal lending and non-disbursed loans would generally not be accepted, with greater reliance instead on secured lending, government-backed loans or recognised education finance.

Genuine Student Assessment Could Also Change

Financial requirements are only one part of the review.

Australia is also considering changes to Ministerial Direction 106, which guides officials assessing whether studying is genuinely the primary purpose of a Student visa application.

For new students, assessments could focus more directly on the credibility of the proposed study pathway, educational background, preparedness, choice of course and institution, costs and intended outcomes.

For students continuing or returning to study, greater weight could be given to their conduct in Australia, academic progress, course changes, study gaps, employment and financial patterns.

The government is also considering reducing reliance on formulaic Genuine Student statements and instead using revised application questions and supporting evidence.

Working in Australia Would Not Replace Financial Capacity

The consultation paper makes another important point: expected future income from working in Australia would not count as a substitute for the money needed for tuition and essential living expenses.

Australia wants applicants to demonstrate sustainable funding without assuming they will find work after arrival.

What Does This Mean for Nepali Students?

For Nepali students planning to study in Australia, there is no new 50% funding requirement to follow yet.

The 50% full-course models, Australian bank-account requirements, three-month holding period and other changes are options being examined during consultation.

The official consultation material discusses a possible interim measure for Evidence Level 3 countries but does not, on the consultation page itself, identify Nepal by name as being subject to that measure. Therefore, it would be premature to report these proposed Evidence Level 3 rules as confirmed requirements specifically for Nepali applicants without separate official confirmation of Nepal's applicable status.

Consultation Open Until November 23

The Department of Home Affairs is accepting written submissions until 12:00 pm AEDT on November 23, 2026.

After consultation, feedback will inform advice to the Australian government on whether any reforms should proceed and how they could be designed and implemented.

homeaffairs.gov.au