Financial Capacity Evidence for the Subclass 500 Visa
Why finances matter for the subclass 500 visa
The Department of Home Affairs requires evidence of financial capacity because it wants to be confident you can genuinely afford to study and live in Australia without working excessively (which would breach your visa conditions) or relying on social welfare.
It is not just a number — the Department assesses both the source and the stability of your finances, not only the balance at the moment you lodge.
How much Home Affairs requires
The Department publishes a minimum living-costs figure, updated from time to time, on immi.homeaffairs.gov.au. This figure covers:
- Your living costs for 12 months (the figure set by the Department, not your actual local costs)
- If a spouse or child travels with you, an added amount for each dependant
- A return airfare
Plus tuition: The Department’s requirement is living costs plus your first-year tuition. If tuition is not shown on your CoE, you need to add it.
Check the specific current figure at immi.homeaffairs.gov.au — do not rely on old numbers from forums or articles that are out of date.
Which financial documents are accepted
The Department lists the types of financial evidence it accepts. The most common are:
Bank statements:
- Yours, or those of someone supporting you financially (a parent or sponsor)
- Covering at least several recent months — not just the current month
- They need to show your cash-flow history, not only the current balance
Loan approval: If you have a bank loan to fund your study, a loan-approval letter from the bank may be accepted.
Scholarship letter: An official letter from the scholarship provider confirming which costs the scholarship covers.
Employer sponsor letter: If an employer in your home country is supporting you financially, you need an official letter on the company’s letterhead.
Why “fresh deposits” raise doubts
The Department knows this pattern very well: an applicant adds money to an account just before lodging to reach the required figure, then withdraws it after the visa is processed. The Department looks at:
- The source of the money: Where did it come from (salary, long-term savings, or a sudden transfer)?
- The timing: A balance that jumps suddenly a week or two before the lodgement date is a clear signal.
- Consistency with income: Does your monthly income, or that of the person supporting you, match the amount in the account?
If the Department suspects the finances are not genuine, that is a basis to refuse the visa. In serious cases it can be treated as fraudulent information under PIC 4020.
How to prepare your finances properly
Prepare at least six months ahead: Start building or maintaining an adequate bank balance from at least six months before your intended lodgement date. Statements covering several months will show stability.
Explain the source if needed: If there is a large movement in the account (for example, selling an asset or receiving an inheritance), explain it in a covering letter with documents to prove it.
If you rely on family support: You need both the supporter’s bank statements and a letter committing to financial support. The supporter’s statements also need to show a stable history, not just the current balance. Add documents about their assets if available (property, investments).
Home-country bank accounts: The Department accepts bank statements from your home country. They need an English translation by a suitably qualified translator.
A realistic recommendation
The Department requires a minimum figure to assess the visa. In practice, however, many students find once they are in Australia that real costs are higher than the figure the Department sets — particularly in Sydney and Melbourne.
Our suggestion: prepare your finances above the Department’s minimum requirement, and have a contingency plan in case costs exceed what you expect.