Understanding Financial Capacity Assessment for Australian Student Visa Applications

Saturday 25 November 2023
This comprehensive guide explains the financial capacity assessment required for Australian student visa applications. It details the necessary funds for tuition, living expenses, health cover, and travel, along with guidelines for showcasing available funds through various income sources. This article is essential for international students preparing for their educational journey in Australia, ensuring they meet the Genuine Temporary Entrant (GTE) criterion by demonstrating sufficient financial resources.
Australia's education system is a popular destination for international students. However, understanding the financial requirements for a student visa is crucial. The Genuine Temporary Entrant (GTE) criterion includes a thorough financial capacity assessment to ensure students can support themselves during their stay. Here's a breakdown of the financial requirements:


1. Applicant and Family Members:

  • Travel (Return Airfares): Calculate using Skyscanner.
  • Tuition for the First Year of Study: Refer to your offer letter for indicative costs.
  • Overseas Health Cover (OSHC): Estimate costs using  OSHC Link
  • Living Expenses: Guidelines are as follows:
    • Applicant: AU$25,000/year.
    • Spouse/Partner: AU$9,000/year.
    • First Child: AU$4,000/year.
    • Each Additional Child: AU$4,000/year.
    • Schooling Costs for accompanying children aged 5-18: AU$8,500/child.
    • Travel Costs: AU$2,000/person.
  • Total Funding Required: Sum of all the above costs for the applicant and family members.

To calculate the financial capacity needs for different scenarios—single person, couple, and family with two kids under 18—let's use the guidelines provided. We'll include costs for tuition, living expenses, overseas health cover (OSHC), and travel. Note that these are illustrative examples based on the current guidelines and actual costs may vary.

Example 1: Single Student

  • Tuition for First Year of Study: $30,000 (hypothetical)
  • OSHC: $600 (estimated)
  • Living Expenses: $25,000
  • Travel (Return Airfares): $2,000 (estimated)
  • Total: $30,000 + $600 + $25,000 + $2,000 = $57,600

Example 2: Couple

  • Tuition for the First Year of Study: $30,000
  • OSHC: $8,500 (for both)
  • Living Expenses for the Applicant: $25,000
  • Living Expenses for the Spouse: $9,000
  • Travel (Return Airfares for both): $4,000
  • Total: $76,500

Example 3: Family with Two Kids Under 18

  • Tuition for the First Year of Study: $30,000
  • OSHC: $16,000 (for the family)
  • Living Expenses for the Applicant: $25,000
  • Living Expenses for the Spouse: $9,000
  • Living Expenses for the First Child: $4,000
  • Living Expenses for the Second Child: $4,000
  • Schooling Costs for Children: $17,000 (2 children at $8,500 each)
  • Travel (Return Airfares for the family): $8,000
  • Total: $113,000 ​


1. Conversion and Calculation:

  • Show the exchange rate used for calculating required funds.

2. Applicant's and Sponsors' Details:

  • Include income details for the applicant and sponsors (if applicable).
  • Acceptable sponsors: Parents, Brothers, Sisters.

3. Income Sources:

  • Education Loans: Provide approved loan documentation.
  • Savings (Bank Deposits): Bank statements in the name of the student/sponsor.
  • Annual Salary Income: Official tax assessments.
  • Business Income: Confirmation of business operation and government documentation.
  • Agricultural Income: Tax statements/government documents.
  • Rental Income: Tax statements/government documents.
  • Other Income: Appropriate documentation.

Income Source Guidelines:

  • Savings (Bank Deposits): Funds should have been built up over a minimum of 6 months. If not, additional documentation confirming the source of funds is required.
  • Education Loan: Must cover the above funding requirements.
  • Salary Income: Minimum income requirement for individual students is AUD 72,465, and for families, it's AUD 84,543.
  • Business, Agricultural, and Rental Income: Government documentation is necessary to confirm funds.


Meeting the financial capacity assessment is a vital part of the GTE requirement for an Australian student visa. Prospective students must carefully prepare and document their financial resources, ensuring they meet the specified guidelines. By doing so, applicants demonstrate their capability to support themselves financially during their educational journey in Australia, thereby fulfilling a crucial aspect of the GTE criterion.

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