Proof of funds for the Australian parent visa: bonds, costs, and sponsor obligations

The two parent visa pathways and their costs

Australia offers two main pathways for parents: the standard (non-contributory) parent visa and the contributory parent visa. The financial difference between them is dramatic.

The standard Parent visa (subclass 103) has a first VAC of AUD 4,990 per applicant. It is substantially cheaper than the contributory pathway, but queue times currently exceed 30 years for most applicants. The low cost reflects the fact that the government limits the number of these visas granted each year to a small fraction of the total parent visa allocation.

The Contributory Parent visa (subclass 143) has a first VAC of AUD 4,990, plus a second VAC instalment of AUD 47,755 payable when the department is ready to grant the visa (Department of Home Affairs). This second instalment is the main cost difference. For two parents applying together, the second instalment alone totals AUD 95,510.

A two-stage option exists through the Contributory Parent (Temporary) visa (subclass 173), which allows the cost to be spread over time. The first VAC for the 173 is AUD 4,990, and a second instalment of AUD 31,555 is payable before the temporary visa is granted. The visa holder can then apply for the permanent subclass 143, paying a further instalment of AUD 21,390. The total cost is slightly higher than going directly for the 143, but the staged payment structure can make it more manageable.

The Assurance of Support explained

Beyond the visa application charges, the sponsor must provide an Assurance of Support (AoS) — a formal undertaking to repay the Australian Government for any recoverable social services payments made to the visa holder during a specified period (Services Australia).

The AoS requires the sponsor to lodge a bond with Services Australia. The current bond amounts are AUD 10,000 for the primary applicant and AUD 4,000 for each additional adult applicant included in the AoS. For a couple (two parents), the total bond is AUD 14,000.

The bond is held for 10 years from the date the visa is granted. If no recoverable social services payments are made to the visa holder during that period, the full bond is returned to the sponsor at the end of the 10 years, plus any accrued interest. If the visa holder does access recoverable payments, the government deducts those amounts from the bond, and the sponsor is liable for any amounts exceeding the bond.

Recoverable payments covered by the AoS include certain Centrelink payments such as JobSeeker Payment, Age Pension (in some circumstances), and other income support payments. Medicare and pharmaceutical benefits are generally not recoverable under the AoS.

Who can be an assurer and what they must demonstrate

The assurer (typically the sponsoring child) must demonstrate they have sufficient income and assets to support the parent without the parent needing to access social services. Services Australia assesses the assurer's financial capacity separately from the Department of Home Affairs visa process.

To be approved as an assurer, you must be an Australian citizen, permanent resident, or eligible New Zealand citizen, be at least 18 years old, have adequate income and assets to support the visa applicant, not be currently receiving certain social security payments yourself, and not have any outstanding AoS debts from previous assurances.

The income test for the AoS is assessed by Services Australia based on the assurer's taxable income. The threshold is reviewed periodically and depends on the number of people covered by the assurance and the assurer's family size. If the primary assurer does not meet the income threshold alone, a joint assurer (another family member or the parent's other child in Australia) can share the obligation.

Services Australia publishes the current income thresholds and application process on its website. The assessment is separate from and in addition to the visa sponsorship assessment conducted by the Department of Home Affairs.

Total cost breakdown for bringing a parent to Australia

Putting all the costs together, here is what a typical contributory parent visa costs for a single parent.

The first VAC instalment is AUD 4,990. The second VAC instalment is AUD 47,755. The Assurance of Support bond is AUD 10,000 (refundable after 10 years). Health examination costs are approximately AUD 300–500. Police clearance certificates cost approximately AUD 50–150 depending on the country. Migration agent fees (if used) range from AUD 3,000 to AUD 8,000. Health insurance for the initial period (before Medicare access) costs approximately AUD 1,500–3,000 per year.

The total non-refundable cost is approximately AUD 56,000–61,000 per parent, plus the AUD 10,000 bond. For two parents, double the VAC and health-related costs, and add AUD 4,000 to the bond for the second adult, bringing the total to approximately AUD 115,000–125,000 plus an AUD 14,000 bond.

These figures make the parent visa one of the most expensive family reunification pathways in any developed country. The amounts are set by legislation and regulation, and there is limited scope for reducing them. Fee waivers are not available for parent visa application charges.

Timing of payments

The costs do not fall due all at once, which provides some planning runway.

The first VAC instalment is payable when the visa application is lodged. Given that processing times for the subclass 143 can be several years, there is a gap between this payment and the second instalment.

The second VAC instalment is requested by the department when the application has been assessed and is ready for a decision. The department sends a letter requesting payment within a specified timeframe (usually 28 days). If payment is not made within the timeframe, the application may be refused.

The Assurance of Support bond is lodged with Services Australia after the department has invited the sponsor to arrange it, which typically happens during the later stages of processing. The bond must be lodged and the AoS approved before the visa can be granted.

This staging means sponsors typically have several years between the initial application costs and the second instalment and bond. Using that time to save for the second instalment is a common strategy.

Health insurance and Medicare access

Parent visa holders granted the subclass 143 are permanent residents and therefore eligible for Medicare. However, there may be a processing gap between arrival (if the parent arrives on a bridging visa or temporary visa) and the grant of the permanent visa during which Medicare eligibility is uncertain.

Parents arriving on the temporary subclass 173 pathway are not immediately eligible for Medicare and must maintain private health insurance. The cost of appropriate health insurance for older adults is higher than for younger migrants — expect AUD 2,000–5,000 per year depending on age, health status, and level of cover.

Once Medicare-eligible, parent visa holders may still benefit from private health insurance to avoid the Medicare Levy Surcharge (if their income exceeds the threshold) and to access services not covered by Medicare (dental, optical, private hospital rooms).

The four-year waiting period for social services

Parent visa holders are subject to the Newly Arrived Resident's Waiting Period (NARWP), which restricts access to most Centrelink payments for four years from the date of visa grant. Combined with the 10-year Assurance of Support period, this means the parent may have limited access to government financial support for a significant period after arriving.

The waiting period applies to payments including JobSeeker, Youth Allowance, Austudy, Parenting Payment, and some other social security payments. Certain payments are exempt from the waiting period, including crisis payments, family tax benefit, and some concession cards.

This waiting period makes the sponsor's financial capacity particularly important. The parent will rely on the sponsor (and their own resources, if any) for financial support during the NARWP period. For a detailed explanation of waiting periods and exemptions, see the guide on Centrelink waiting periods for new migrants.

Planning the financial commitment

Given the scale of the costs, financial planning for a parent visa typically starts years before the application is lodged. Sponsors should consider the total cost across both VAC instalments, the bond, and ongoing support, the timeline — processing times of three to five years for the subclass 143 mean the second instalment may fall due at a predictable future date, the ongoing financial responsibility for the parent during the AoS period, and health insurance costs for the parent, particularly if they are older or have pre-existing conditions.

Some sponsors save specifically for the second instalment during the processing period. Others use the temporary subclass 173 pathway to spread payments over a longer period, accepting the slightly higher total cost in exchange for more manageable instalments.

Consulting a registered migration agent and a financial adviser before committing to a parent visa application is strongly recommended, given the financial scale and the decade-long obligations involved.

Is the Assurance of Support bond refundable?

Yes. The bond is held for 10 years, and if no recoverable social services payments are made to the visa holder during that period, the full bond plus accrued interest is returned to the assurer. If recoverable payments are made, those amounts are deducted from the bond before any refund.

Can the parent work in Australia to support themselves?

Yes. Both the temporary subclass 173 and permanent subclass 143 include work rights. The parent can seek employment in Australia, though age and language barriers may affect employment prospects. Any income the parent earns reduces their potential need for social services and eases the financial burden on the sponsor.

What happens if the sponsor cannot pay the second VAC instalment?

If the sponsor cannot pay the second instalment when requested, the visa application may be refused. The first instalment is not refundable. This risk makes it critical to plan for the second instalment well in advance, including allowing for the possibility that processing may be faster than expected.

Can two children share the sponsorship and AoS costs?

The visa sponsorship can only be held by one person, but the Assurance of Support can include a joint assurer. This means two siblings can share the AoS obligation and bond, though the visa application charges (first and second instalments) must still be paid in full regardless of how many children contribute.

Are there any concessions for low-income sponsors?

There are no fee concessions or waivers for parent visa application charges. The AoS income test must be met by the assurer (or joint assurers), and if neither meets the threshold, the AoS will not be approved and the visa cannot be granted.