Living cost benchmark
Above AUD $29,000 annually for the primary applicant in 2026. Applies to the first 12 months. Multi-year courses need pro-rata evidence.
Living Costs · Tuition · Travel · Dependents
Student visa financial thresholds rose significantly.
Financial capacity preparation is handled by Vishal Sharma and Sourabh Aggarwal for 500 applicants. Our Brisbane and Gold Coast offices coordinate with families nationally. The 2024-2025 reform lifted living cost requirements above AUD $29,000 annually for primary applicants. On top of that: tuition, travel, and dependents. Here is what genuinely needs to be demonstrated in 2026 for the Subclass 500.
The four financial elements
Living costs. Tuition. Travel. Dependents.
Financial capacity evidence covers four categories. All four together determine eligibility.
Tuition fees
Full tuition for the first 12 months of the course. Often demonstrated by receipt of payment or confirmed capacity.
Travel expenses
Return travel to and from Australia. Usually AUD $2,000 for primary applicant, with dependent additions.
Dependents (if any)
Additional living costs for each dependent: partner adds significant amount, each child adds smaller amount. School fees for school-age children additional.
Evidence standards
Funds must be verifiable.
The Department wants evidence funds are genuinely available and from identified sources.
Bank statements (primary)3-6 months of bank statements showing balances and history. Sudden large deposits without explanation raise concerns.
Fund source documentationWhere the funds came from: employment, business, property sale, family gift with documented giving capacity. Chain of funds traced.
Scholarship or sponsorship lettersOfficial letters from scholarship providers or sponsors with terms and conditions.
Education loansFormal education loan approvals from recognised institutions. Loan disbursement schedule aligned with course fee payment schedule.
Common problems
Three evidence gaps that cause refusals.
Financial capacity refusals often come from specific evidence issues rather than insufficient funds.
Unexplained large deposits
Funds that appeared suddenly in the applicant account without documented source. Department concerns about genuineness.
Sponsor capacity not demonstrated
Sponsor letters without evidence the sponsor has the financial capacity they claim. Sponsor tax returns and bank statements needed.
Loan approvals without disbursement plans
Education loans approved but without schedule showing funds arriving when needed. Concerns about actual availability.
Financial capacity thresholds are updated annually.
The 2026 figures reflect recent increases. Applicants should verify current thresholds at time of application, not rely on older figures. The Department publishes updated benchmarks as part of policy updates.
Common questions
The questions we hear most.
For financial capacity preparation, book with Vishal Sharma.
Do I need to show funds for the full course or just the first year?
First 12 months is the evidence threshold. Longer commitments show stronger capacity but first-year is the legal minimum.
Can my parents be the source of funds?
Yes. Parent sponsorship is common. Parent bank statements, tax records, and employment evidence needed to show capacity.
Do scholarships cover the financial test?
Scholarships that cover tuition and living costs can satisfy the financial test. Letter must specify exactly what is covered.
Can I use a loan to meet the financial test?
Yes. Education loans from recognised institutions are acceptable. The loan approval with terms needs to be provided.
Some information on this page has been sourced from the Department of Home Affairs and has been interpreted and approved by Principal Migration Agent Sourabh Aggarwal (MARN 1462159). Last reviewed: May 2026.