The financial capacity requirement is one of the most misunderstood parts of the subclass 500 student visa. It's also one of the easiest to get refused on — because Home Affairs treats the number as a hard floor and the "genuine" nature of the funds as the real test.

The 2026 Threshold

Applicant	Annual living costs required
Primary applicant	AUD $29,710
Partner / spouse	$10,394
First child	$4,449
Each additional child	$3,335

These figures were last updated on 10 May 2024 and remain in force through July 2026. They apply to the first 12 months of your intended stay, on top of tuition and travel costs.

Total You Must Actually Prove

For a single applicant, the working total Home Affairs expects to see evidence of is:

Tuition (first year) + Travel (AUD $2,500) + Living costs ($29,710)

For a Master's in Melbourne at $42,000 tuition, that's roughly AUD $74,000 in evidenced funds at the time of lodgement.

What Counts as "Genuine" Funds

This is where most refusals happen. Home Affairs is looking for money that is actually yours to spend, not a number that briefly appeared in a bank account.

Acceptable evidence:

• Savings account in your name or a close family member's name, showing balance held for at least 3 months.
• Fixed deposits / term deposits with clear ownership.
• Education loans from major recognised banks (SBI, HDFC, ICICI, Nabil, NIC Asia, HBL, etc.) with disbursement letter.
• Sponsor evidence: parent or spouse's 6 months of salary slips + income tax returns + affidavit of support.

Usually not accepted:

• Loans from private lenders without regulatory registration.
• Gift deeds from distant relatives with no relationship evidence.
• Cash on hand.
• Cryptocurrency holdings.
• Money moved in from an unknown source within the last 30 days.

The "3-Month Rule"

While the regulations don't formally require 3 months, practically every officer applies it. If a large sum lands in your account 2 weeks before lodgement, expect either a Section 56 information request or an outright refusal.

Fix: park the money early. If you must transfer late, provide bank certificates from the source account showing the funds existed there for the prior 3–6 months.

Sponsor Documents that Actually Work

If your parents are sponsoring you (most common), submit:

1. Sponsor's bank statements — 6 months, showing regular salary/business income deposits.
2. Income tax returns (last 3 years).
3. Employment letter or business ownership documents (GST registration, trade licence).
4. Property valuations if using property as backup evidence.
5. Signed Affidavit of Support (notarised) confirming they will fund your studies.
6. Relationship evidence: birth certificate showing parent–child link.

Education Loans in 2026

Bank education loans remain the strongest form of financial evidence for Indian, Nepali, and Bangladeshi students. The key: submit the loan disbursement letter, not just the sanction letter. Officers want to see the money is committed, not merely approved.

The Income Alternative

You can substitute income evidence instead of savings if:

• Your parent/spouse earns AUD $87,856+ annually (single-applicant threshold), OR
• AUD $102,500+ if your partner is joining you.

Home Affairs will convert local currency at official rates. This route works well for salaried professionals in the Middle East and Southeast Asia, but is risky if income is inconsistent.

Common Refusal Traps

• Round-tripped loans: money borrowed, shown in your account, then returned to the lender.
• Sponsors without income evidence: an affidavit alone is not enough.
• Currency conversion errors: always use the RBA rate on the day of lodgement.
• Wrong tuition figure: use the exact figure from your CoE, not the university's website.
• Ignoring the OSHC line item: OSHC premiums must be paid separately and evidenced.

After You're Onshore

The financial capacity test only applies at grant. Once you're onshore, there's no ongoing balance requirement — but visa condition 8202 requires you to maintain enrolment and satisfactory progress. Running out of money mid-course won't cancel your visa, but dropping out will.

Related Reading

• July 1, 2026 changes for international students
• Genuine Student (GS) test 2026 guide
• Best bank accounts for international students