Australia is considering making international students hold their study funds in an Australian bank account, in their own name, before they apply for a student visa. The idea is one of several options in a consultation published by the Department of Home Affairs on 30 October 2026.
The government says the aim is to make financial evidence easier to verify and to reduce visa refusals for genuine students. The amount of money students must show would not increase. Submissions close at 12pm (Australian Eastern Daylight Time) on 23 November 2026.
Four options for proving funds
The consultation paper moves away from paper documents such as bank statements towards funds that can be checked directly. It sets out four illustrative models, The PIE News reported:
- Model 1: hold 50% of the total tuition and living costs for the whole course in an Australian account for at least one month before applying, with the money released on a set schedule.
- Model 2: hold the same amount for at least three months before applying, with no fixed withdrawal limits.
- Model 3: hold 100% of first-year tuition and living costs for at least three months before applying. Release limits could apply to some groups of students.
- Model 4: use recognised education finance, such as approved loans or scholarships, with funds moved to an Australian account where practicable.
Under every option, students would need to show where the money came from, that it belongs to them, and that they can access it. Expected earnings from part-time work would not count towards essential costs.
Interim changes for some countries
While the longer-term reforms are considered, Home Affairs is also seeking views on an interim measure for applicants from countries it rates as Evidence Level 3, the level that currently requires the most supporting documents. For these applicants:
- financial evidence would be required when the visa application is lodged, whichever university or college they apply to;
- at least six months of bank transaction history would be needed;
- financial support would normally have to come from the student, a spouse, parents or another approved supporter;
- unsecured personal loans, and loans not yet paid out, would generally no longer be accepted.
Evidence levels are set for each country and change from time to time. Students can check the level for their own country and education provider using the Document Checklist Tool on the Home Affairs website.
Why Australia is doing this
Julian Hill, the assistant minister for international education, said refusals of genuine applicants were “actively deterring the very students we most want”, according to The PIE News.
“Even if this means raising the financial standards and a smaller pool of prospective students, I want grant rates to improve.”
Julian Hill, Assistant Minister for International Education
Hill also pointed to New Zealand’s deposit system as a possible longer-term model. Canada has a similar option: many students deposit their first year’s living costs with a Canadian bank, through a Guaranteed Investment Certificate, before they arrive.
Open questions
Several practical issues are still unresolved, The Koala News noted. These include what happens to the money if a visa is refused, how students would open an Australian bank account from abroad, and how identities would be checked. For students from countries that limit how much money can be sent overseas, moving large sums before a visa decision could also be difficult.
Renée Leon, vice-chancellor of Charles Sturt University, said students need clarity “before they spend $2,500 to apply for a visa”. She supported the aim of improving integrity.
A difficult period for Australia
The consultation comes as Australia loses ground with international students. In IDP Education’s latest survey of more than 4,800 mostly prospective students, the share naming Australia as their first-choice destination fell from 31% to 24% in about six months. The UK and the US were each chosen by 21%, Times Higher Education reported.
Recent changes include higher visa fees and, since September, a ban on most students bringing family members, with exemptions including PhD students. Separately, more than 150 postgraduate research students from several countries say they have faced long visa delays, with a median wait of about eight months, Times Higher Education reported. Home Affairs said a “small number” of applicants were affected and that checks vary with individual circumstances.
What students should know
If you are applying now, the current rules apply. Use the official Document Checklist Tool and your university’s guidance to prepare your financial evidence.
If you plan to apply in 2027 or later, be ready for stricter checks on where your money comes from. Keeping funds in your own account, with a clear history, is likely to matter more.
If you are applying for a PhD or research degree, allow for the possibility of long processing times, and ask your university about deferral options before you accept an offer.
Anyone can respond to the consultation, including students, families and education providers. Details are on the Home Affairs website.
Disclaimer
This article is general information based on the Department of Home Affairs consultation published on 30 October 2026 and reporting at the time of writing. It is not immigration advice and should not be relied on for decisions about your own application. The proposals may change or may not go ahead.
In Australia, immigration assistance should come from a registered migration agent or an Australian legal practitioner. You can check an agent’s registration on the Office of the Migration Agents Registration Authority website, or speak to your university’s international student team. StudyAbroad.ac and LSLIT do not provide immigration advice.
Sources: Department of Home Affairs, consultation on proposed reforms to the Genuine Student requirement and financial capacity framework, 30 October 2026; The PIE News; The Koala News, 2 November 2026; Times Higher Education, 28 October and 2 November 2026; ABC News, 17 September 2026. Checked on 3 November 2026.