1. Private Debt vs. Commonwealth Debt
The Department of Home Affairs (DHA) has very different views on who you owe money to:
- Private Debt (Credit Cards, Personal Loans, Car Loans): These are agreements between you and a private bank (e.g., CommBank, ANZ, NAB). The DHA generally does not check your credit score or your private debt levels for the 485 visa. As long as your debt hasn’t led to a criminal conviction (e.g., for fraud), it won’t trigger a refusal.
- Commonwealth Debt (The “Red Flag”): You must have no outstanding debts to the Australian Government. If you owe money to the following, your visa will be delayed or refused until it is paid or a repayment plan is in place:
- ATO (Australian Taxation Office): Unpaid taxes from your student jobs.
- Medicare: Unpaid levies or services.
- Centrelink: Overpayments you were not entitled to.
- Public Hospitals: Unpaid medical bills for non-OSHC covered services.
2. The 2026 “Character Requirement” (Form 80)
While the debt itself isn’t a problem, how you handle it can be.
- Truthfulness: When filling out Form 80 or your visa application, if you are asked about financial “defaults” or legal proceedings, you must be honest.
- The Risk: If a credit card company has taken you to court and a judgment has been made against you, this becomes part of your “general conduct” record. In 2026, the DHA places a higher emphasis on “good character,” and while a simple debt isn’t a fail, a history of ignoring legal orders can be a “red flag.”
3. Financial Capacity for the 485 Visa
Unlike the Student Visa (Subclass 500), the Post-Study Work Visa does not require you to show $29,710 AUD in savings.
- The 2026 Cost: However, the application fee for the 485 visa has nearly doubled to $4,600 AUD as of March 2026.
- The Strategy: If your credit card is “maxed out,” your primary concern isn’t the visa criteria—it’s having the liquid cash to pay the non-refundable $4,600 fee at the time of lodgement.
4. 2026 Debt & Visa Impact Table
| Type of Debt | Affects 485 Visa? | Action Required |
| Credit Card Balance | No | Continue regular payments. |
| Personal/Car Loan | No | None (Private matter). |
| ATO Tax Debt | Yes | Pay in full or set up a payment plan. |
| Unpaid Traffic Fines | Yes | Pay immediately (Commonwealth debt). |
| Health Insurance Gap | No | Ensure you have 485-compliant cover. |
5. Pro-Tips for Students with Debt in 2026
- Check Your MyGov: Log in to your MyGov account to ensure there are no “hidden” debts to the ATO or Medicare that you’ve forgotten about.
- Maintain Your OSHC/OVHC: Ensure your health insurance is active. Debt to a private health insurer won’t stop your visa, but not having the insurance will lead to an immediate refusal under Condition 8501.
- Don’t Default: If you are struggling with credit card payments, contact your bank’s “Financial Hardship” team. Resolving it privately keeps it off the radar of government character assessments.
