The Australian Government has announced that foreign students will need to demonstrate evidence of A$24,505 ($15,693) in savings, reflecting a 17% increase from the current requirement starting from October 1, 2023.
Announced amongst a range of other measures to support genuine international students and overall integrity in the international education system on August 26 – such as the end of concurrent study rule– the goal is to make sure students have enough money to live and study in Australia and to stop anyone from taking advantage of students who might not have enough financial assistance.
The financial requirements for a student visa was previously set at A$21,041. However, the government determined that an increase was required to reflect rising living costs as this requirement hasn't been updated since 2019.
Global Reach agent Ravi Lochan Singh who has been representing Australian Universities in India for over three decades says, "the government has been concerned that the cost of living has gone up but the rate at which the funds were demonstrated was pegged at the 2019 rate and thus has increased the same. Keeping in mind that funds are only demonstrated for the first year of study, genuine students should not have difficulty with this."
The closure of the "concurrent study" rule, which earlier allowed international students to enroll in more than one course, was initially designed to prepare them for jobs through short-term courses. However, this method has seen major exploitation in 2023, with 17,000 such enrollments occurring during the first half of the year. This rise triggered investigations, exposing the system's misuse and the potential for the sector's integrity to be compromised.
While emphasizing the significance of this change, Minister Jason Clare announced, "This modification will effectively curtail predatory ‘second’ providers from enrolling students before they have fulfilled the requisite six months of study at their initial provider." This action aims to shield international students from unethical practices while bolstering the credibility of Australia’s educational offerings.
These changes come on the back of a surge in visa applications from various nations, including India, characterized by fraudulent practices. Instances of students providing inaccurate financial information to gain entry into Australia have been on the rise. Consequently, Australia has declined thousands of such applications.
According to Singh, these reforms will serve as a clean-up of the sector. "It has been something that has been campaigned for by the Association of Australian Education Representatives in India (AAERI) for over ten years now."
He added that the loophole should be closed for 12 months rather than six, “I welcome these changes though I would hope that the students are barred from downgrading or switching institutions till one year of arrival in Australia unless the student has a release (NOC) from the first universities. In the interest of genuine students, the loopholes have to be plugged."
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