Introduction
When applying for an Australian visa, most people focus on the primary applicant’s skills and points. But there is a hidden cost that catches thousands of families by surprise: the Second Installment Visa Application Charge (2nd VAC).
If you are including a partner or dependent (aged 18 or older) in your application for a permanent or provisional skilled visa, they generally need to prove they have “Functional English.” If they cannot prove this, the Department of Home Affairs will ask you to pay a massive “language charge” before they grant the visa. This fee is effectively a penalty for not having English skills, and it can cost anywhere from AUD $4,890 to nearly $10,000, depending on the visa subclass.
However, the rules for proving Functional English changed significantly on 7 August 2025. New tests have been added, score requirements have shifted, and strict rules regarding “at-home” tests are now in force.
In this ultimate guide, we will explain exactly what Functional English is, which visas require it, how to save money by avoiding the 2nd VAC, and the specific test scores you need to hit under the new 2026 regulations.
What is Functional English?
In the hierarchy of Australian migration English (Functional, Vocational, Competent, Proficient, Superior), Functional English is the most basic level. It proves that a visa applicant has a basic grasp of the English language sufficient to navigate daily life in Australia.
Unlike the higher levels (Competent/Proficient), Functional English is rarely required for the primary applicant of a skilled visa. Instead, it is the standard required for secondary applicants (spouses, partners, and adult children) to ensure they can integrate into the community.
If your partner has Functional English, they can migrate without extra cost. If they don’t, you must pay the “Second Installment VAC” to fund English tuition for them after they arrive.
The Cost of Failing: The “Second Installment VAC”
The stakes for proving Functional English are financial. For many skilled and business visas, if your secondary applicants (over 18) do not have Functional English, you will receive an invoice from the Department just before the visa is granted.
This requirement applies to a wide range of popular visas. Failing to provide evidence for the following subclasses will trigger the 2nd VAC:
- Skilled Independent (Subclass 189)
- Skilled Nominated (Subclass 190)
- Skilled Work Regional (Subclass 491)
- Skilled Regional (Subclass 887)
- Employer Nomination Scheme (Subclass 186)
- Regional Sponsored Migration Scheme (Subclass 187)
- Business Innovation and Investment (Subclass 188 & 888)
- Global Talent (Subclass 858)
- Skilled Employer Sponsored Regional (Subclass 494)
- Skilled Regional (Subclass 489)
- Former Resident (Subclass 151)
The Cost: While fees change each financial year, the 2nd VAC for most General Skilled Migration visas (like the 189, 190, and 491) is typically around AUD $4,890. For Business visas (188/888), it can be significantly higher (often nearly $10,000).
Strategy: Spending $300 on an English test to prove Functional English is a much smarter investment than paying a $4,890 government fee!
The Changes: What Happened on 7 August 2025?
On 7 August 2025, the Department of Home Affairs introduced Legislative Instrument LIN 25/014. This law overhauled the English language framework.
The key changes include:
- New Tests Accepted: The Michigan English Test (MET), CELPIP General, and LANGUAGE CERT Academic are now approved for Australian visa purposes.
- Score Adjustments: The required scores for PTE Academic and TOEFL iBT have been adjusted to align with new benchmarks.
- Numerical OET Scores: OET has moved to a numerical system (0-500 scale) rather than the old A-E grades.
- Strict “At-Home” Ban: The Department has explicitly banned all remote-proctored or “at-home” versions of these tests.
How to Prove Functional English (The 3 Methods)
There are three main ways to prove you meet the requirement. You only need to satisfy one of them.
Method 1: The “Passport” Pathway
This is the easiest method. You automatically have Functional English if you hold a valid passport and are a citizen of:
- The United Kingdom (UK)
- The United States of America (USA)
- Canada
- New Zealand
- The Republic of Ireland
- Note: You must hold the passport. Permanent residency in these countries is not enough.
Method 2: The “Education” Pathway
If you don’t hold one of the passports above, you can prove your English ability through your education history. This is often a free way to meet the requirement if you have studied in English before.
Option A: Schooling You must have completed all years of primary education and at least 3 years of secondary education at an institution (in or outside Australia) where all instruction was in English. OR You must have completed at least 5 years of secondary education at an institution (in or outside Australia) where all instruction was in English.
Option B: Tertiary Study in Australia You have completed at least 1 year of full-time study (or equivalent part-time) in Australia towards a:
- Degree
- Higher Degree (Master/PhD)
- Diploma
- Associate Diploma
Critical Detail: All instruction must have been in English. If you studied in Australia, this is usually assumed, but ensure your completion letter states “Language of instruction: English.”
Method 3: The “English Test” Pathway
This is the most common route for partners who did not study in English. You must sit an approved test and achieve the minimum “Functional” score.
Important Validity Rule: The test must have been taken no more than 12 months before you lodge your visa application. This is stricter than the 3-year validity often seen for primary applicants. However, if you took a test before August 2025, specific transitional arrangements apply (see below).
Approved Tests and New Scores (Post-August 2025)
If you take a test on or after 7 August 2025, you must meet these scores:
1. Pearson Test of English (PTE) Academic
- Required Score: Overall band score of at least 24.
- Analysis: This is a very achievable score for most applicants. Note that while the test name is the same, the scoring scale benchmarks have been updated by the test provider.
2. IELTS (Academic or General Training)
- Required Score: Average band score of at least 4.5.
- Note: This is an average across the four components (Listening, Reading, Writing, Speaking).
- One Skill Retake (OSR): Accepted! If you slip up in one area but your average is dragged down, you can use OSR to fix it.
3. Michigan English Test (MET) – NEW
- Required Score: Overall band score of at least 38.
- Note: The MET is a 4-skill digital exam. The Department accepts Single Section Retake (SSR) for this test, meaning you can resit just one section (Reading, Writing, or Listening) to boost your average.
- Warning: You cannot use the “MET Digital At-Home” version. You must go to a test center.
4. CELPIP General – NEW
- Required Score: Overall band score of at least 5.
- Context: Popular in Canada, this test is now available for Australian migration. It focuses on functional, everyday English.
- 5. TOEFL iBT
- Required Score: Total score of at least 26.
- Crucial Step: When registering, you MUST select “Taking TOEFL for Australia.” If you don’t, your result will not be valid for visa purposes.
5. Occupational English Test (OET)
- Required Score: Overall band score of at least 1020.
- Note: OET is designed for healthcare professionals. If your partner is a nurse or doctor, they might take this. Note that OET score reports don’t always print the “Overall” score, so you may need to calculate it or contact OET.
6. LANGUAGE CERT Academic – NEW
- Required Score: Overall band score of at least 38.
The “At-Home” Test Ban
This is critical. During the pandemic, many providers launched “At-Home” or “Remote Proctored” versions of their tests (e.g., TOEFL Home Edition, OET@Home). The Australian Government DOES NOT ACCEPT these for migration purposes anymore.
Prohibited Tests Include:
- IELTS Online
- LANGUAGECERT Academic Online
- OET@Home
- CELPIP Online
- MET Digital (taken at home)
- TOEFL iBT – Home Edition
- You must sit your exam at a secure, physical test centre. If you upload an “Online” or “Home Edition” certificate, your visa could be refused, or you will be asked to re-sit the test (delaying your application).
Using Older Test Results (Transitional Arrangements)
What if you took a test before 7 August 2025? You can still use it, provided it was taken within the 12 months before your visa application.
The old scores apply for tests taken before 7 August 2025:
- PTE Academic: Total band score of 30.
- TOEFL iBT: Total band score of 32.
- IELTS: Average of 4.5.
- Cambridge (CAE): Overall score of 147.
- Key Takeaway: If you have a PTE score of 28 from before August 2025, it is not valid (because the old requirement was 30). But if you score 28 after August 2025, it is valid (because the new requirement is 24).
Conclusion
Proving Functional English is one of the easiest ways to save thousands of dollars on your visa application. With the introduction of new tests like MET and CELPIP, and lower score benchmarks for PTE Academic (24), it has never been more accessible for secondary applicants to meet the standard.
However, the “At-Home” test ban and the new scoring systems add a layer of complexity. Ensure you book a test center appointment and select the correct “For Australia” option when registering. A small effort in preparation now saves a massive bill later.
FAQ Section
1: Does my partner need to take the English test Before we apply?
Not necessarily, but it is safer. For the 2nd VAC, the assessment is usually made closer to the decision time. However, to be valid, the test must typically be taken no more than 12 months before the application is made or processed. We strongly recommend having the result ready at the time of application to avoid delays.
2: My partner has lived in Australia for 5 years. Is that enough?
No. Residency alone does not prove Functional English. Unless they hold a passport from the UK, USA, Canada, NZ, or Ireland, or have completed the specific study requirements (e.g., 1 year of tertiary study in Australia), they will still need to sit a test.
3: Can we combine scores from two different tests?
Generally, no. You must meet the score requirement in a single test sitting. However, tests like IELTS and MET now offer “One Skill Retake” which allows you to fix one component of a test without re-sitting the whole thing. The Department accepts these updated score reports.
4: What happens if we can’t afford the 2nd VAC?
If you cannot prove Functional English and cannot pay the 2nd VAC, the application will likely be invalid. The fee is a mandatory condition for the visa if the English requirement isn’t met. This is why passing the test is so important!
