The Australian Government increased the financial capacity requirement for several reasons:

Rise in Living Expenses: The primary reason for the increase is the rise in living expenses. The amount students need to show to meet the financial capacity requirement is the minimum amount needed for the visa. Actual living costs vary throughout Australia and may be higher than what is needed for the visa.

Reduce Risk of Financial Distress: The increase is based on assumptions that international students who demonstrate compliance with this updated financial standard are better equipped to make well-informed decisions about their future endeavours and be less likely to be in financial distress in Australia.

Prevent Visa Breaches: The increase also aims to reduce the likelihood that students will breach their visa conditions by working more hours than permitted.