Subclass 500 Student Visa Financial Requirements 2026: Proof of Funds

Meeting the financial requirements is one of the most critical steps in securing your Australian Student Visa (Subclass 500). The Department of Home Affairs needs to be satisfied that you have genuine access to sufficient funds to cover your tuition fees, living costs, travel expenses, and any dependants’ costs for the duration of your stay. This requirement exists to ensure you can focus on your studies without falling into financial hardship, and it is assessed strictly — incomplete or insufficient financial evidence is a leading cause of student visa refusals.

This guide explains exactly how much money you need to show, what types of evidence are accepted, how the rules differ depending on your country of origin, and the common pitfalls that cause applications to be rejected. Whether you are self-funding, relying on parental support, or combining a scholarship with savings, understanding these requirements will help you prepare a watertight application.

How Much Money Do You Need to Show?

The financial capacity requirement for a Subclass 500 visa has several components. The Department of Home Affairs uses a formula based on 12 months of living costs, your first year of course fees, travel costs, OSHC, and any school fees if you have dependant children. As of July 2026, the figures are as follows.

12 Months of Living Costs

The base living cost requirement for a single student is $29,710 per year. This figure was updated by the Department of Home Affairs in May 2024 and remains in effect. If you are bringing family members, you must show additional funds:

• Spouse or de facto partner: $10,394 per year
• First child: $9,638 per year
• Each additional child: $4,206 per year

Note that these are the minimum amounts the Department requires you to demonstrate — your actual living costs may be higher, particularly in expensive cities like Sydney or Melbourne. For a detailed comparison of living expenses by city, see our guide on the cost of living in Sydney, Melbourne, and Brisbane for students.

Course Fees for the First Year

You must show funds to cover the full tuition fees for your first year of study. This is the amount stated on your Confirmation of Enrolment (CoE). If your course is shorter than 12 months, you only need to show the total course fees. If your CoE covers a package of courses (for example, an ELICOS program followed by a degree), you need to show the fees for the first component of that package.

For most university courses ranging from $28,000 to $50,000 per year, this is the second-largest component of the financial requirement after living costs. For more detail on specific fee ranges by discipline, check our guide on Australian university tuition fees for international students in 2026.

Travel Costs

The Department allows a standard travel cost of approximately $2,000 for a single applicant. This covers a return flight to and from your home country. If you are bringing family members, you must add $2,000 per additional family member.

OSHC Premium

You must show that you can cover the cost of Overseas Student Health Cover for the full duration of your visa. For a single student, this typically adds $500 to $800 per year. For couples policies, budget $1,800 to $3,000 per year. For family policies, the cost can reach $3,500 to $5,000 per year. To understand exactly what OSHC covers and how different providers compare, read our guide on what OSHC covers and how to compare OSHC providers.

School Fees for Dependant Children

If you are bringing school-aged children (aged 5 to 18), you must show at least $9,638 per child per year for school fees. This is on top of the child’s living cost allowance. School fees can be higher in practice, particularly at private schools, so this is a minimum figure. Children may attend public government schools, where fees for dependants of international students vary by state — in New South Wales, for example, temporary residents pay approximately $5,000 to $6,000 per year for government primary schools and $6,000 to $8,000 per year for government secondary schools.

Worked Example: Two-Year Master’s Degree

Let’s calculate the total funds a single student from a non-streamlined country would need to show for a two-year Master of Data Science at a mid-tier university charging $38,000 per year, living in Brisbane.

• 12 months of living costs: $29,710
• First year course fees (from CoE): $38,000
• Travel costs: $2,000
• OSHC for two years (single): approximately $1,300
• Total: $71,010

If the same student wanted to bring a spouse and one child under 5 to Brisbane, the calculation becomes:

• Student living costs: $29,710
• Spouse living costs: $10,394
• First child living costs: $9,638
• First year course fees: $38,000
• Travel costs (3 people): $6,000
• OSHC for two years (family): approximately $7,000
• Total: $100,742

These are substantial sums. Many students rely on a combination of sources — savings, parental contributions, education loans, and scholarships — to meet these requirements.

Acceptable Evidence of Financial Capacity

The Department of Home Affairs accepts several types of evidence. The key principle is that the evidence must demonstrate genuine, unencumbered access to the funds.

Bank Statements and Term Deposits

Personal bank statements showing savings or term deposits in your name (or in the names of both you and your spouse) are the most straightforward form of evidence. Statements should cover at least the three months preceding your application and show a consistent balance at or above the required amount. Unexplained large deposits just before the application date can raise red flags — case officers look for a genuine savings history.

Term deposits and fixed deposits are acceptable if they can be liquidated for your use in Australia. The deposit certificate should show the account holder’s name, the deposit amount, the maturity date, and confirmation that funds are accessible.

Education Loans

An education loan from a recognised financial institution is one of the most common ways students from India, Bangladesh, Nepal, and other South Asian countries meet the financial requirement. The loan sanction letter must state the approved loan amount, the borrower’s name, the sanction date, and the terms of disbursement. The funds must be earmarked for your education and living expenses in Australia.

The Department may verify the authenticity of the loan with the issuing bank, so ensure all documentation is genuine. Loan documents that appear altered, or that come from unrecognised institutions, will result in refusal.

Scholarships and Sponsorships

An official scholarship letter from your university, the Australian Government (such as an Australia Awards scholarship), or a recognised international organisation can be used as evidence of financial capacity. The letter must clearly state the scholarship amount, what expenses it covers (tuition, living stipend, travel, or all of the above), and its duration. If the scholarship covers only part of your costs, you must provide additional evidence for the remainder.

For more information on scholarships available to international students, read our guide on scholarships for international students in Australia 2026.

Parental or Spousal Income

An alternative to showing a lump sum of savings is demonstrating that your parent(s) or spouse has a sufficient annual income. As of the 2024 update (current through mid-2026), the income threshold is:

• Single student: the sponsor must demonstrate an annual income of at least $87,856
• Student with family members: the sponsor must demonstrate an annual income of at least $102,500

The income evidence typically includes payslips, employment contracts, tax returns, and bank statements showing salary deposits for at least the 12 months preceding your application. If you use the income pathway, you do not need to separately document savings or a lump sum — the income itself serves as evidence of capacity.

Combined Sources

You can combine multiple sources. For example, you might use a scholarship letter covering 50% of your tuition, a bank statement showing $20,000 in savings, and a parental income declaration for the remainder. The key is that the total demonstrable funds meet or exceed the required amount across all categories (living costs, tuition, travel, and OSHC).

Assessment Levels and Streamlined Processing

Australia operates an Assessment Level framework that categorises countries and education sectors based on immigration risk. Your Assessment Level affects how much evidence you need to provide upfront.

Applicants from Assessment Level 1 countries — which include the United Kingdom, the United States, Canada, Singapore, Japan, South Korea, and most Western European nations — generally benefit from streamlined evidentiary requirements. In practice, this means you may only need to declare that you have sufficient funds (a “declaration of financial capacity”) rather than submitting detailed bank statements, loan letters, or income evidence. However, the Department retains the right to request full documentation at any time, and making a false declaration is a serious offence that can result in visa cancellation.

Applicants from Assessment Level 2 and 3 countries are almost always required to submit comprehensive financial evidence with their application. Countries in these levels include India, Nepal, Pakistan, Bangladesh, Nigeria, and several others. The specific evidence requirements may also depend on your education provider — applicants to universities and tertiary institutions classified as Level 1 providers within their sector may face lower evidence burdens than those applying to VET or ELICOS providers in higher-risk categories.

Assessment Levels are not fixed permanently — the Department reviews them regularly based on visa compliance data. Before you apply, check your country’s current Assessment Level at the Department of Home Affairs website (immi.homeaffairs.gov.au).

Common Reasons for Financial Evidence Rejection

Knowing what can go wrong helps you avoid it. Here are the most common reasons financial evidence is rejected.

Insufficient total amount is the most frequent issue. Applicants sometimes add up their savings and forget one component — travel costs or OSHC — and fall short of the total required. Use the Study Cost calculator to work out your exact numbers before lodging.

Funds parked or unexplained large deposits are another red flag. If your bank statement shows a balance of $2,000 for six months and then suddenly $70,000 appears two weeks before your application with no explanation, the case officer will ask questions. Where possible, show a consistent savings history over at least three to six months, or provide a documented source for any large deposit (such as a property sale agreement, inheritance, or gift deed).

Inconsistent documentation is a common problem when applicants submit documents that don’t match. If your CoE states a course fee of $38,000 but your financial calculation uses $35,000, the discrepancy will be caught. Double-check that all numbers align across your application.

Unverifiable sources, such as cash savings that cannot be traced to a bank account, statements from unregulated lenders, or letters from employers that cannot be verified, are typically rejected. The Department treats bank statements from recognised financial institutions as the gold standard of evidence.

Preparing Your Financial Application

Start preparing your financial evidence at least three to six months before you plan to lodge your visa application. This gives you time to consolidate funds, address any unusual transactions in your bank statements, and obtain the necessary letters and declarations.

If you are relying on parental sponsorship, work with your parents to gather complete documentation: their identification documents, evidence of their relationship to you (birth certificate), bank statements, tax returns, and a signed sponsorship declaration. The declaration should explicitly state that they will cover your tuition fees, living expenses, travel costs, and OSHC for the full duration of your intended stay, and that the funds are a genuine gift or support arrangement with no expectation of repayment that would pressure you financially.

If you are self-funding, maintain your savings in a single account where possible, avoid large unexplained movements, and request a balance certificate from your bank in English (or with a certified translation) that covers the required amount plus a buffer of 5-10% to account for exchange rate fluctuations.

Finally, always check the current financial requirements on the Department of Home Affairs website before lodging, as the figures are subject to periodic review and increase. The amounts in this article reflect the requirements as of July 2026.

Use the Study Cost calculator to work out your exact numbers — it factors in your specific course fees, living costs by city, OSHC premiums, and dependant costs to give you a total financial requirement tailored to your situation.

Disclaimer: Visa requirements, fees, and policies are set by the Australian Department of Home Affairs and may change. University tuition fees and scholarship availability vary by institution and intake. This article provides general information only and does not constitute migration advice or education agent services. Always verify current requirements at immi.homeaffairs.gov.au and with your chosen institution. Last updated: July 2026.