Australia Tightens Student Visas with Higher Fees and Proof of Funds

(AUSTRALIA) — Australia raised the student visa financial bar for 2026, keeping the Subclass 500 application fee at AUD 2,000 while requiring applicants to show AUD 29,710 in living-cost support and charging AUD 4,600 for the post-study Temporary Graduate Visa from March 1, 2026.

The changes add to tighter screening already in place for overseas students, especially Indian applicants, with a mandatory Genuine Student test, a new processing model tied to institutional enrolment caps, and continuing pauses by some universities on applications from six Indian states.

For students and families planning for Australia this year, the higher proof of funds threshold sits alongside tuition, travel costs of about AUD 2,500–3,000, health cover and, for those hoping to remain after graduation, the sharply higher Subclass 485 fee. Work rights remain unchanged at 48 hours per fortnight during term, while research degree students can still work unlimited hours.

The 2026 settings build on changes introduced in 2025, when Australia replaced the Genuine Temporary Entrant test with the Genuine Student, or GS, requirement and made Confirmation of Enrolment mandatory before application. Officials have said the measures aim to protect education quality, curb visa misuse and manage enrolment growth.

A valid CoE from an accredited provider remains a pre-condition for applying, blocking speculative applications and tying each case to a confirmed place of study. The GS test now requires a tailored Statement of Purpose that links the chosen course to prior education, career plans and visa compliance.

Applicants must also meet English-language standards that remain in force this year. The minimum is IELTS 6.0 overall for Subclass 500 student visas and IELTS 6.5 for graduate visas, with lower thresholds of 5.0 for ELICOS and 5.5 for foundation pathways.

Another change affecting processing came into force on November 14, 2025, under Ministerial Direction 115. The rule introduced a traffic-light model that gives fastest processing to institutions using less than 80% of their enrolment cap, standard processing to those at 80–115%, and slower handling to those above 115%.

That means the choice of institution can now affect how quickly a visa moves. Students headed to green-zone providers stand to receive priority, while those applying to red-zone institutions face delays and extra checks.

Indian applicants face added pressure because some universities continue to pause applications from Punjab, Haryana, Uttar Pradesh, Rajasthan, Gujarat, and Jammu & Kashmir. The pauses follow fraud concerns and come after regulators shut down more than 150 fraudulent providers in August 2024.

The enforcement drive has focused on so-called “ghost colleges” and on limiting switching patterns seen as high risk. A January 2026 National Code update also bars agent commissions for recruiting in-study switchers.

For many families, the money test now sits at the centre of application planning. The proof of funds requirement remains AUD 29,710 for living costs, updated on May 10, 2024 and reaffirmed for 2026, with applicants also needing to show 12 months of tuition, or a pro-rated amount for shorter courses.

Dependents raise the threshold further. Applicants must show AUD 10,394 for a partner and AUD 4,449 for each child.

Home Affairs accepts evidence such as bank statements covering 3–6 months, education loans, scholarships or sponsor documents. The emphasis falls on genuine access to funds, rather than last-minute transfers, and sudden deposits can hurt an application.

That requirement has become more important as fees have risen across the student pathway. The Subclass 500 fee stays at AUD 2,000, after doubling from 2024, while the Subclass 485 post-study fee doubled to AUD 4,600 for the main applicant from March 1, 2026.

Dependent charges on the graduate route also climbed. Adult dependents pay AUD 2,300 and a child under 18 pays AUD 1,160.

The post-study route has tightened in other ways too. Australia has lowered the age cap for Subclass 485 to 35 from 50 and barred onshore switches from visitor or 485 visas to student visas, part of a broader push against “visa-hopping.”

That squeezes one of the biggest attractions for overseas students: the ability to work in Australia after completing a course. Post-study work rights still run for 2–3 years, with longer periods for regional and research pathways, but the higher fee, lower age cap and English requirement have raised the cost of staying on.

For Indian applicants, those barriers land on top of heightened scrutiny at the point of entry. Applications from the six affected states can face interviews, close document checks and longer waits, even as compliant cases continue to succeed.

Approval rates run at about 90% for compliant applications, but weak GS statements and weak finances can lead to refusals. Counsellors have been stressing 3–6 month banking histories, course logic and careful explanations of study plans.

That has changed how applicants prepare their files. A strong Statement of Purpose must explain “why Australia,” why a particular course fits previous study, how it serves later career goals and how the student plans to comply with visa conditions.

Families also have to factor in costs beyond visa charges and bank balances. The broader environment includes a 4.4% insurance increase from April 2026 and tuition rising by about 6% yearly, pushing the real cost of study higher before a student even arrives.

Planning levels have still risen, though cautiously. Australia set 295,000 new places for 2025/26, with public universities favored over vocational and ELICOS providers.

That larger intake does not mean easier entry. The system now places more weight on compliance history, provider status and the internal cap position of each institution than on raw application volume.

For students choosing where to apply, that has turned provider selection into a visa issue as much as an academic one. A place at a compliant green-zone institution can mean faster movement, while an offer from a red-zone provider can bring slower processing before a file is even assessed on its merits.

The restrictions have also reshaped recruitment patterns from India. Gujarat alone accounted for 20% of inflows before the pauses, and consultants now say students from Gujarat and Punjab are shifting toward fewer intakes and taking more time to assemble financial evidence.

Australia’s message to applicants is that the route remains open, but the margin for error has narrowed. Students must secure a CoE, pass the English test, document funds over several months, buy OSHC health cover and stay within work limits once they arrive.

The practical sums involved are steep. With AUD 29,710 in living-cost evidence, the AUD 2,000 Subclass 500 fee and AUD 4,600 for a later Temporary Graduate Visa, upfront commitments can exceed AUD 35,000 once tuition and insurance are added.

Officials have framed the tougher settings as part of an integrity drive that also brings in revenue. Fee hikes are projected to raise AUD 185M.

Even so, the system still offers a defined pathway for students who clear the hurdles. A successful Subclass 500 application can still lead to post-study work experience under Subclass 485, and from there to longer-term options for those who meet later requirements.

Applicants are also being told to watch for operational changes. The online application system runs through immi.homeaffairs.gov.au, and officials flagged maintenance such as a March 27–28, 2026 outage.

For now, the 2026 regime leaves little room for loosely prepared cases. Australia has kept its student route open, but it now demands a full set of documents, a convincing GS statement, stronger proof of funds and, for graduates, a far more expensive next step if they want to stay.