Australia Plans Tougher Checks on Student Visa Funds: What Indian Families Should Know Now

In short: On 30 October, Australia's Department of Home Affairs asked for views on changing two parts of the Student visa: the "Genuine Student" test and the rules on proving you can pay. These are proposals, not new rules, and feedback closes on 23 November 2026. Families planning an Australian degree for 2027 or 2028, especially those relying on loans or family savings, should start getting their money paperwork in order now.

What happened

Home Affairs published a consultation paper called Strengthening the Genuine Student requirement and financial capacity framework. Its page says plainly that no decisions have been made. The feedback will shape the advice the department gives the Australian government on whether to go ahead, and how.

Two things are being looked at:

1. The Genuine Student test. This is the check that a student really intends to study. It is guided by an official instruction called Ministerial Direction 106.
2. Proof of funds. Today an applicant generally shows enough money for 12 months of tuition, living and travel costs, through a bank deposit, an approved loan or proof of yearly income. How much evidence is asked for up front can depend on the student's country and the chosen college.

What could change?

Proof of money

The paper suggests moving from simply showing documents to checking where money came from, who owns it, whether it can actually be used, and whether it will last. It sets out four possible longer-term models. Two ask for 50% of the full course's tuition and living costs held in an Australian account before applying, for one month or three months. One asks for the full first year's costs, held for three months. The fourth allows recognised education loans, scholarships or personal funds, with the money usually moved to an Australian account where practical.

There is also a possible short-term step for applicants from the countries Australia treats as higher risk (called Evidence Level 3). They could be asked to show funds when they apply, whatever the college. Deposits would generally need at least six months of transaction history. Funds would generally have to come from the student, a spouse, parents or another approved supporter. Unsecured personal loans would generally not be accepted. In this step, the amounts themselves would stay the same for now.

One point applies across the proposals: money a student hopes to earn from a part-time job in Australia would not count towards study and living costs.

Proof of funds

Today and what is proposed

Today

• Show 12 months of costs
• Deposit, loan or income papers
• Checks vary by country and college

Proposed

• Money checked for source and owner
• 6 months of deposit history (higher-risk countries)
• Future job earnings don't count

The Genuine Student test

The paper proposes simpler guidance, with different questions for students starting a new course and for those already studying in Australia. It suggests less reliance on written "Genuine Student" statements, which many applicants now fill with similar wording, and clearer reasons when a visa is refused.

For students

• Your study plan needs to make sense on its own. If the test moves away from long written statements, your past studies, chosen course and career goal will need to fit together clearly.
• Plan fees without counting on part-time work. The proposals say money you hope to earn while studying would not count as proof of funds.
• Don't change plans on a proposal. Nothing has changed yet. Watch for the final decision before you pay a deposit you cannot get back.

For parents

• Traceable money matters more. Keep savings for your child's education in one account, in the name of the student or a parent, and avoid large last-minute deposits. If the six-month history idea goes ahead, money moved in a few weeks before applying could be a problem.
• Choose loans carefully. A sanctioned education loan from a recognised bank is likely to be safer than informal or unsecured borrowing, which the paper suggests would generally not be accepted.
• Keep the paper trail. Salary slips, tax returns, property sale papers or fixed deposit receipts that show where the money came from are worth collecting now.
• Ask the university. Its international admissions office should know what Home Affairs currently asks for from Indian applicants.

What it means

Planning a 2027 or 2028 start?

For students

• Keep your study plan clear and consistent
• Don't count on part-time work to pay fees
• Watch for the final rules

For parents

• Keep money in one traceable account
• Avoid last-minute deposits and unsecured loans
• Keep papers showing where funds came from

Key dates

Date	What
30 Oct 2026	Consultation paper published
23 Nov 2026, 12 pm (Australian Eastern Daylight Time)	Written feedback closes
Not yet announced	Government decision and any start date

Written feedback can be sent by email; details are on the Home Affairs page below.

Sources

• Department of Home Affairs, Consultation on proposed reforms to the Genuine Student requirement and financial capacity framework: closing date, "no decisions have been made", how to send feedback. Checked 1 Nov 2026.
• Department of Home Affairs, Strengthening the Genuine Student requirement and financial capacity framework (consultation paper): the four funding models, the short-term step for Evidence Level 3 applicants, work earnings, Genuine Student proposals, current 12-month requirement. Checked 1 Nov 2026.

If a calm look at your Australia plan and budget would help, we're here.

Dates can change. Confirm on the official website before you pay or apply.