EXPLANATORY STATEMENT
Migration Regulations 1994
EVIDENCE OF FINANCIAL CAPACITY FOR SUBCLASS 500 (STUDENT) VISAS AND SUBCLASS 590 (STUDENT GUARDIAN) VISAS 2016/018
(subclause 500.214(4), 500.313(4) and 590.216(4))
- Instrument IMMI 16/018 is made under subclause 500.214(4), subclause 500.313(4) and subclause 590.216(4) of the Migration Regulations 1994 (the Regulations).
- Under clause 500.214 and clause 500.313 of Schedule 2 to the Regulations, an applicant seeking to satisfy the primary criteria or secondary criteria of a Subclass 500 (Student) visa, must maintain genuine access, while the applicant holds the visa, to sufficient funds available to meet the costs and expenses of the applicant during the applicant’s intended stay in Australia and the costs and expenses of each member of the applicants family unit (if any) who will be in Australia. If required by the Minister the applicant will also be required to provide evidence of financial capacity under subclause 500.214(4) or subclause 500.313(4) of Schedule 2 to the Regulations.
Under clause 590.216 of Schedule 2 to the Regulations, an applicant seeking to satisfy the primary criteria of a Subclass 590 (Student Guardian) visa, must maintain genuine access to sufficient funds to meet the costs and expenses of the applicant during the applicant’s intended stay in Australia and the costs and expenses of each member of the applicants family unit (if any) who will be in Australia and unless the applicant meet the requirements in subclause 590.211(4) of Schedule 2 to the Regulations, the costs and expenses of each nominating student. The applicant must also provide evidence of financial capacity that satisfies requirements under subclause 590.216(4) of Schedule 2 to the Regulations
3. The purpose of the Instrument is for the Minister to specify under subclause 500.213(4), subclause 500.313(4) and subclause 590.216(4) of Schedule 2 to the Regulations, requirements that the applicant of a Subclass 500 (Student) visa or a Subclass 590 (Student Guardian) visa gives to the Minister as evidence of financial capacity.
On 16 June 2015, the Australian Government released the Future Directions for Streamlined Visa Processing report and announced that it would implement the report’s eight recommendations; including a simplified student visa framework base on two of the key recommendations:
- reduce the number of student visa subclasses from eight to two; and
- implement a new combined country and provider immigration risk framework to guide student visa evidentiary requirements and create streamlined visa application processing opportunities for education providers across all sectors.
Subclass 500 - Student and Subclass 590 – Student Guardian form part of the project to simplify the Departments student visa framework.
4. Consultation was undertaken with key international education sector stakeholders as part of the project to simplify Australia's student visa framework before this instrument was made. Stakeholders consulted included: Commonwealth agencies (Department of Education and Training, Austrade, Department of Foreign Affairs and Trade, the Department of Defence, the Australian Skills Quality Authority, and the Tertiary Education Quality and Standards Agency), state and territory government agencies (including school regulators), as well as industry peak bodies (Australian Council for Private Education and Training, Australian Government Schools International, Council of Private Higher Education, English Australia, Independent Schools Council of Australia, International Education Association of Australia, TAFE Directors Australia, and Universities Australia).
5. The Office of Best Practice Regulation (OBPR) has been consulted and a Regulatory Impact Statement has been completed, and is attached to this Explanatory Statement at Attachment A. (OBPR Reference 18083).
6. Under section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015, the Instrument is exempt from disallowance and therefore a Statement of Compatibility with Human Rights is not required.
7. The Instrument commences immediately after the commencement of Schedule 4 of the Migration Legislation Amendment (2016 Measures No. 1) Regulation 2016.
Overview
The Migration Regulations 1994, amended by Instrument IMMI 16/018, address the need for a simplified student visa framework in Australia by reducing the number of student visa subclasses from eight to two, specifically Subclass 500 (Student) and Subclass 590 (Student Guardian) visas. Enacted by the Australian Government, this legislation aims to streamline visa application processing and guide evidentiary requirements based on a new combined country and provider immigration risk framework. The policy objective, as outlined in the Future Directions for Streamlined Visa Processing report, is to create a more efficient and effective student visa system, benefiting both applicants and education providers. Consultation with key stakeholders, including Commonwealth agencies, state and territory government agencies, and industry peak bodies, was undertaken to ensure the legislation met the needs of all parties involved.
Scope and Application
The Migration Regulations 1994 Evidence of Financial Capacity for Subclass 500 (Student) Visas and Subclass 590 (Student Guardian) Visas 2016/018 applies to applicants seeking a Subclass 500 (Student) visa or a Subclass 590 (Student Guardian) visa in Australia. This instrument is made under subclauses 500.214(4), 500.313(4) and 590.216(4) of the Migration Regulations 1994, and it specifies the requirements for applicants to provide evidence of financial capacity to the Minister. The purpose of this legislation is to ensure that applicants maintain genuine access to sufficient funds to cover their own costs and expenses during their intended stay in Australia, as well as the costs and expenses of each member of their family unit who will be in Australia. The instrument is part of the Australian Government's initiative to simplify the student visa framework, as recommended in the Future Directions for Streamlined Visa Processing report released on 16 June 2015. This legislation commenced immediately after the commencement of Schedule 4 of the Migration Legislation Amendment (2016 Measures No. 1) Regulation 2016, and it is exempt from disallowance under section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015.
Key Provisions
The Migration Regulations 1994, as amended by the Evidence of Financial Capacity for Subclass 500 (Student) Visas and Subclass 590 (Student Guardian) Visas 2016/018, establish clear requirements for applicants seeking a Subclass 500 (Student) visa or a Subclass 590 (Student Guardian) visa. Specifically, under subclause 500.214(4) and subclause 500.313(4), applicants must demonstrate genuine access to sufficient funds to cover the costs and expenses of their intended stay in Australia, including those of any family members accompanying them. Similarly, under subclause 590.216(4), applicants for a Student Guardian visa must provide evidence of sufficient funds to cover their expenses and those of any family members, as well as the expenses of any nominating students, unless they meet specific requirements in subclause 590.211(4). These provisions ensure that applicants can financially support themselves and any accompanying family members while in Australia.
Applicants for these visas must comply with the regulations by providing evidence of financial capacity as specified by the Minister. This evidence must satisfy the requirements outlined in the new regulations, which were developed following consultations with various stakeholders, including government agencies and industry peak bodies. The aim was to streamline the visa application process and create a more consistent approach to assessing financial capacity for student visa applicants. As part of this process, the number of student visa subclasses was reduced from eight to two, simplifying the overall framework for student visas.
Failure to provide adequate evidence of financial capacity can result in visa application refusals. If an applicant does not meet the financial requirements, their visa application may be rejected, preventing them from entering Australia to pursue their studies. Additionally, any misrepresentation or fraudulent evidence provided in support of a visa application can lead to further consequences, such as bans on future visa applications. The seriousness of these penalties underscores the importance of adhering to the financial capacity requirements set out in the regulations.
In summary, the new regulations for Subclass 500 (Student) visas and Subclass 590 (Student Guardian) visas focus on ensuring applicants can financially support themselves and any accompanying family members during their stay in Australia. By providing clear guidelines on the required evidence of financial capacity, the regulations aim to streamline the visa application process and maintain the integrity of the student visa framework. Non-compliance with these requirements can result in significant penalties, including visa refusals and bans on future applications.