2026 Australian Student Visa Financial Capacity Reform | Four Deposit Models, EL3 Interim Measure, MD106 Review (Under Consultation)

分享：

On 30 October 2026 the Department of Home Affairs released a consultation paper, Strengthening the Genuine Student requirement and financial capacity framework, the same day Assistant Minister for International Education Julian Hill outlined the reform agenda at the Australian International Education Conference (AIEC) in Sydney. The paper sets out four possible financial capacity models built around Australian bank accounts, a possible interim tightening for primary applicants from Evidence Level 3 countries, and principles for revising Ministerial Direction 106 (MD106), which guides the Genuine Student assessment.

Read this first: as at 5 November 2026, every proposal is still open for consultation. Nothing has been decided or commenced, and the current financial capacity rules are unchanged. This article summarises what the paper says, lists the current official figures and explains how international applicants can prepare now.

1. Scope, timeline and status
2. Current financial capacity rules (still in force)
3. The four proposed models and their common principles
4. Interim measure for Evidence Level 3 primary applicants
5. Proposed changes to MD106
6. The numbers behind the reform
7. How to prepare now
8. How to check the requirements for your passport and provider
FAQ

1. Scope, timeline and status

Home Affairs describes two connected but distinct areas: principles for any future revision of MD106, and options to strengthen the financial capacity framework. A separate, earlier interim measure for Evidence Level 3 primary applicants is also on the table.

Item	Detail
Submissions close	12:00 pm AEDT, Monday 23 November 2026; late submissions may not be considered
How to submit	Email student.visa.consultation@homeaffairs.gov.au, subject line "Student Visa Consultation – sector/organisation"
Status	Home Affairs states: "No decisions have been made on these proposals." Feedback will inform advice to Government on whether reforms proceed and their scope, sequencing and design
Next steps	Any preferred approach still needs legal authority, instruments, guidance, forms, systems, verification, training and transition work before commencing

Even if the Government adopts a model, legislative and banking work must happen before it applies to anyone. Applicants lodging now should prepare under the current rules in section 2.

2. Current financial capacity rules (still in force)

The figures below come from the Home Affairs Student visa (subclass 500) page, "Evidence you have enough money for your stay", and are current as at 5 November 2026.

Item	Current amount (AUD)	Notes
Living costs, student	A$29,710 per 12 months	Pro rata if staying less than 12 months (annual amount ÷ 365 × days)
Living costs, accompanying partner	A$10,394 per 12 months	Pro rata as above
Living costs, each accompanying child	A$4,449 per 12 months	Pro rata as above
Schooling, each school-age child	At least A$13,502 per year	Actual fees vary by state and school
Course fees	First 12 months per your CoE	Deduct amounts already paid, with receipts or CoE
Travel costs	A$2,000 (most countries); A$2,500 from East or Southern Africa; A$3,000 from West Africa; A$1,000 if applying in Australia	Add A$1,500 if applying onshore and returning to Africa
Annual income alternative	Parents' or partner's income of at least A$87,856; at least A$102,500 if family members are included	Official documents such as tax assessments less than 12 months old; bank statements and employer letters not accepted

Acceptable evidence includes deposits with a financial institution, government or financial-institution loans, and scholarships. If someone else provides the funds, you must show your relationship, their identity documents and any past support they have given. If you rely on deposits, you must explain how the funds were accumulated. Home Affairs is explicit that a bank balance certificate across a single day does not show how you increased your funds, which is exactly the gap the reform targets.

3. The four proposed models and their common principles

The centrepiece of the paper is a framework built on an "eligible Australian bank account or prescribed financial product". Under the first three options, applicants would hold the funds in an Australian account in their own name before lodging; the options differ in amount, holding period and whether access is managed. The fourth is a controlled pathway for recognised education finance. Home Affairs stresses the models are "illustrative and are not settled Departmental positions".

Option	Amount and holding period	Access to funds
1. Managed 50% model	50% of total tuition and prescribed living costs for the full course or package, held in an eligible Australian account for at least one month before lodgement	Released on a prescribed schedule; rated "highest assurance" but with the greatest product design, liquidity, consumer protection and implementation impacts
2. Flexible 50% model	Same 50% of full-course costs, held for at least three months	No mandatory release schedule; still requires strong account verification
3. First-year assurance	100% of tuition and prescribed living costs for the first 12 months (or the remaining course if shorter), held for at least three months	Managed release could be targeted to defined cohorts; lower liquidity and implementation impacts than the 50% models
4. Recognised education finance	Prescribed costs met through recognised financial institutions, personal funds or a combination	Transfer to an Australian account preferred where practicable; direct reliance on finance permitted only in limited circumstances

"50% of full-course costs" is a different base from today's "first 12 months". For a three-year bachelor degree, options 1 and 2 mean half of three years of tuition plus three years of living costs, which can exceed the current requirement; option 3 is closest to today's amount, with the difference that the money must sit in an Australian account for three months first. Home Affairs is also asking whether a two-track model should apply (documentary evidence in some cases, an Australian deposit in others). The paper also states that all four options would allow verified overseas accounts as a transitional arrangement before an Australian account model is operational.

Whichever option is chosen, all four would:

Require evidence of financial capacity at lodgement, assessed independently of provider Evidence Level settings.
Assess the amount, source, form, ownership, accessibility and sustainability of funds, with ownership, balance history and transactions verifiable.
Exclude prospective earnings from work in Australia as a substitute for study and living funds.
Recognise genuine scholarships, government support and approved education finance.

The paper acknowledges that detailed design must still address pre-arrival account opening, identity verification, fees, exchange rates, refunds, course or provider changes, visa refusal, deferral and withdrawal. For applicants in Latin America, Africa and other markets with currency controls, these practicalities will matter a great deal.

4. Interim measure for Evidence Level 3 primary applicants

Because the Australian account architecture needs further legal, banking and systems work, Home Affairs is separately considering an interim measure for primary applicants from Evidence Level 3 countries. It would keep the current prescribed amounts but "materially strengthen the nature, source, history and verification of the evidence required", without predetermining which long-term option proceeds.

Measure	Current setting	Possible interim setting (EL3 primary applicants)
Who provides evidence	Depends on the combined country and provider Evidence Level	All EL3 primary applicants provide evidence at lodgement, regardless of provider Evidence Level
Amount	Current living, tuition, travel and family amounts; annual-income pathway available	Existing amounts retained initially; focus on evidence quality and genuine access
Account history	No uniform minimum transaction history or holding period	At least six months of transaction history, longer in higher-risk circumstances
Source and ownership	Not uniformly limited	Generally limited to the applicant, spouse, parents or another prescribed supporter, with evidence of relationship, ownership, source, access and continuing capacity
Financial institutions	Broad range accepted	Could be restricted to prescribed, recognised or verifiable institutions
Loans	Loans from financial institutions or governments may be accepted	Unsecured personal lending and non-disbursed loans generally not accepted; greater reliance on secured, government-backed or recognised education finance

Home Affairs is asking whether the measure should apply to all EL3 primary applicants or start with a pilot, whether six months of history is sufficient, and which supporters, institutions and loan products should be accepted. Home Affairs does not publish the Evidence Level of individual countries, so treat any "evidence level table" circulating online with caution; section 8 explains the official way to check.

5. Proposed changes to MD106

MD106 is the ministerial direction, in force since 2024, that guides the Genuine Student assessment. The paper proposes keeping a holistic, individual assessment but reorganising it around the applicant's stage:

Commencing versus continuing or returning students. For new entrants, the focus would move to the credibility and achievability of the study plan (educational rationale, preparedness, course and provider choice, pathway study, costs, intended outcomes). For continuing or returning students, greater weight would go to demonstrated conduct in Australia (progression, outcomes, course changes, gaps, employment and financial patterns, enrolment history and the value of further study).
Positive weighting for transnational education (TNE), where there is evidence of genuine progression and good outcomes; TNE "does not, in itself, guarantee a visa grant".
Delinking finances from future work. Possible future earnings in Australia would be stated clearly not to satisfy financial requirements, and sustainability would be weighed on the basis that there is no guarantee of work or of an extended stay.
Financial capacity assessed separately, letting MD106 return to whether the study pathway and overall circumstances are credible.
Less reliance on formulaic Genuine Student statements, replaced by revised application questions and supporting evidence, with clearer reasons for decisions.

At AIEC, Mr Hill also pointed to New Zealand's deposit model, under which students pre-deposit tuition and living funds, as a possible longer-term direction; the first three options reflect that thinking.

6. The numbers behind the reform

According to ABC News on 30 October 2026, more than 24.2% of Student visa applicants were refused in the last financial year, including more than 51% of Nepali and more than 40% of Indian applications. New international commencements at public universities are projected to fall about 18% this year, wiping an estimated A$2 billion from university revenues over three years. Mr Hill told AIEC that "the rate of refusals is now impacting key markets and actively deterring the very students we most want", and that he wants grant rates to rise "even if this means raising the financial standards and a smaller pool of prospective students". The PIE News quoted Charles Sturt University Vice-Chancellor Renée Leon that offshore higher education visa grants had fallen by more than 40% year on year, and that students need clarity before paying a visa fee of about A$2,500.

The South Asian figures explain the urgency, but the long-term models are designed to apply independently of provider Evidence Level, with evidence required at lodgement for every covered cohort. If adopted, applicants from Latin America, Africa, the Middle East and elsewhere would be affected in the same way.

7. How to prepare now

If you are lodging now, prepare under the current rules. If you plan to apply from 2027 onwards, arrange your finances so they would pass verification under any proposed model:

Consolidate funds into verifiable accounts early, in your own or your parents' names, rather than cash, investment products or informal arrangements. Consolidated funds are easier to move if an Australian account is eventually required.
Keep at least six months of full transaction history. Monthly statements, salary credits and term-deposit maturities all matter; a single-day balance certificate is already insufficient.
Avoid sudden large deposits. A large transfer one or two months before lodgement is the most common trigger for questions. If funds come from a gift, property sale or redeemed investment, keep the paperwork and explain it upfront.
Keep funding within the applicant, spouse and parents. The interim measure would generally limit supporters to that group; if you rely on extended family or friends, restructure early.
Be cautious with unsecured and undisbursed loans. If you must borrow, choose secured, disbursed loans with a contract and disbursement evidence.
Do not count future part-time work. Student visa work hours are capped and earnings cannot substitute for required funds under current or proposed rules.
Calculate full-course costs. Options 1 and 2 use 50% of total tuition plus living costs for the whole course; work out that figure from your CoE duration.
Plan for currency controls and transfer timing. A three-month holding period in Australia means starting transfers well before lodgement.
Watch for the outcome. After 23 November, Home Affairs will advise Government; we will update this page when decisions are published.

8. How to check the requirements for your passport and provider

Home Affairs does not publish Evidence Levels by country or provider. The official way to find out what you must attach is the Document Checklist Tool:

Open the tool and select your passport country.
Enter your provider's CRICOS code or name (shown on your CoE).
The tool lists the documents you must attach at lodgement, including whether financial and English evidence is required.
Even if the checklist does not list financial evidence, Home Affairs may still request it during processing. The checklist is a minimum, not a guarantee.
Subsequent entrants (family members applying after the student's visa is granted) must always attach financial evidence; the checklist does not apply to them.

Home Affairs also notes that the living costs declared for the visa are a minimum for visa purposes only; actual costs vary across Australia and may be much higher.

FAQ

Q1: When do the new rules start? Will my current application be assessed under them?

As at 5 November 2026 all proposals are still under consultation, which closes on 23 November, and Home Affairs states that no decisions have been made. Applications lodged now are assessed under the current rules.

Q2: Will I have to deposit money in an Australian bank account?

Not currently. Australian accounts feature in the first three long-term options. If adopted, the framework is designed to apply independently of provider Evidence Level to every covered cohort, but Home Affairs is also considering verified overseas accounts as a transitional arrangement. How it applies to your nationality will depend on the final decision.

Q3: Will the amount I need to show go up?

The interim measure explicitly keeps current amounts. Among the long-term options, option 3 is close to today's first-year basis, while options 1 and 2 use 50% of full-course costs, which can be higher for multi-year programs. Home Affairs is asking whether those thresholds are appropriate.

Q4: Does the six-month transaction history only apply to Evidence Level 3 countries?

It is part of the proposed interim measure for EL3 primary applicants, but current guidance already requires applicants relying on deposits to explain how funds were accumulated and says a single-day balance certificate is insufficient. Keeping a full history is sensible for every nationality.

Q5: Can I still rely on my parents' annual income instead of savings?

Yes, under current rules: parents' or partner's income of at least A$87,856, or A$102,500 if family members are included, evidenced by official documents less than 12 months old. Whether the income pathway survives the long-term reform has not been announced as at 5 November 2026.

Q6: Can I make a submission?

Yes. Individuals and organisations may email student.visa.consultation@homeaffairs.gov.au by 12:00 pm AEDT on 23 November 2026 with their name, contact details, the cohort they represent and responses to the consultation questions. Submissions are not published.

Not sure how this applies to you? Level Up Studies offers free consultations: