Australia tightens post-study work rules under new migration strategy for 2025–26
The changes mark a clear shift away from broad post-pandemic flexibility toward a more targeted, skills-first migration framework that will directly affect Indian students and global education providers
- Jan 2, 2026,
- Updated Jan 2, 2026 10:51 AM IST
Australia is set to reshape the post-study pathway for international graduates under its 2025–2026 Migration Strategy, tightening work rules and linking visas more closely to skills shortages. The changes mark a clear shift away from broad post-pandemic flexibility toward a more targeted, skills-first migration framework that will directly affect Indian students and global education providers.
The new strategy redraws the conditions under which international students can stay back, work, and transition into longer-term visas. It determines who can remain in Australia, for how long, and under what employment conditions, with implications for students, recruitment agents, and universities worldwide.
From extensions to skills alignment
The Temporary Graduate visa (subclass 485) remains the primary route for international students seeking post-study work in Australia. However, the structure of this visa has already changed. From July 1, 2024, the government introduced new study-based immigration streams, replacing earlier arrangements. The Post-Higher Education Work stream now serves as the main post-study option.
Under this stream, graduates can stay in Australia for a limited period to gain work experience, with durations tied to qualification level and, in some cases, the region of study. The government has made clear that the 485 visa is intended to support early career development rather than long-term temporary residence.
A key change for 2025–2026 is the end of the two-year post-pandemic graduate extension that had applied to select fields. The Department of Education has confirmed that these extensions will conclude in mid-2024, restoring standard stay periods.
For students and agents, this sharpens the focus on course selection, regional study choices, and alignment with skills shortages. For graduates, post-study outcomes will increasingly depend on how closely their qualifications match long-term skilled migration pathways.
Work hour limits return for students
Work rights during study have also tightened. After a period of uncapped hours during the pandemic, Australia reintroduced limits from July 1, 2023. According to Department of Home Affairs, international students on a Subclass 500 visa are generally restricted to 48 hours of work per fortnight during teaching periods, with full-time work permitted only during scheduled breaks.
The government says the cap reinforces study as the primary purpose of the visa while addressing cases of underpayment and exploitation in low-wage sectors that relied heavily on student labour. For many international students, including those comparing Australia with Canada or the UK, financial planning and academic workload are now more closely linked.
Migration caps and graduate competition
Australia’s Migration Strategy, released in December 2023, places international education within a broader push to curb long-term temporary migration and raise standards among providers. While international students contributed nearly A$48 billion to the economy in 2023 and accounted for more than half of GDP growth, housing pressure and infrastructure constraints have prompted tighter controls on migration numbers.
As a result, graduates entering the 2025–2026 cycle will face fewer automatic extensions and greater scrutiny of how their skills fit national priorities. Policy documents emphasise that graduates are expected either to move into roles aligned with shortage lists or transition into permanent pathways where qualifications meet defined workforce needs.
Skills-first hiring takes centre stage
Hiring trends in Australia and other OECD countries increasingly prioritise demonstrable skills over visa status alone. Employers are placing equal weight on current abilities, experience, and qualifications. OECD analysis suggests migrant workers continue to perform strongly even as immigration numbers fall, underscoring the value of clear skills signalling.
For Indian students and education planners, the message is increasingly explicit. Post-study work rights remain, but they now operate within stricter boundaries. Australia’s updated framework is likely to reward students who choose courses aligned with skills demand, understand their work limits clearly, and can demonstrate job-ready capabilities in a more competitive graduate market.
Australia is set to reshape the post-study pathway for international graduates under its 2025–2026 Migration Strategy, tightening work rules and linking visas more closely to skills shortages. The changes mark a clear shift away from broad post-pandemic flexibility toward a more targeted, skills-first migration framework that will directly affect Indian students and global education providers.
The new strategy redraws the conditions under which international students can stay back, work, and transition into longer-term visas. It determines who can remain in Australia, for how long, and under what employment conditions, with implications for students, recruitment agents, and universities worldwide.
From extensions to skills alignment
The Temporary Graduate visa (subclass 485) remains the primary route for international students seeking post-study work in Australia. However, the structure of this visa has already changed. From July 1, 2024, the government introduced new study-based immigration streams, replacing earlier arrangements. The Post-Higher Education Work stream now serves as the main post-study option.
Under this stream, graduates can stay in Australia for a limited period to gain work experience, with durations tied to qualification level and, in some cases, the region of study. The government has made clear that the 485 visa is intended to support early career development rather than long-term temporary residence.
A key change for 2025–2026 is the end of the two-year post-pandemic graduate extension that had applied to select fields. The Department of Education has confirmed that these extensions will conclude in mid-2024, restoring standard stay periods.
For students and agents, this sharpens the focus on course selection, regional study choices, and alignment with skills shortages. For graduates, post-study outcomes will increasingly depend on how closely their qualifications match long-term skilled migration pathways.
Work hour limits return for students
Work rights during study have also tightened. After a period of uncapped hours during the pandemic, Australia reintroduced limits from July 1, 2023. According to Department of Home Affairs, international students on a Subclass 500 visa are generally restricted to 48 hours of work per fortnight during teaching periods, with full-time work permitted only during scheduled breaks.
The government says the cap reinforces study as the primary purpose of the visa while addressing cases of underpayment and exploitation in low-wage sectors that relied heavily on student labour. For many international students, including those comparing Australia with Canada or the UK, financial planning and academic workload are now more closely linked.
Migration caps and graduate competition
Australia’s Migration Strategy, released in December 2023, places international education within a broader push to curb long-term temporary migration and raise standards among providers. While international students contributed nearly A$48 billion to the economy in 2023 and accounted for more than half of GDP growth, housing pressure and infrastructure constraints have prompted tighter controls on migration numbers.
As a result, graduates entering the 2025–2026 cycle will face fewer automatic extensions and greater scrutiny of how their skills fit national priorities. Policy documents emphasise that graduates are expected either to move into roles aligned with shortage lists or transition into permanent pathways where qualifications meet defined workforce needs.
Skills-first hiring takes centre stage
Hiring trends in Australia and other OECD countries increasingly prioritise demonstrable skills over visa status alone. Employers are placing equal weight on current abilities, experience, and qualifications. OECD analysis suggests migrant workers continue to perform strongly even as immigration numbers fall, underscoring the value of clear skills signalling.
For Indian students and education planners, the message is increasingly explicit. Post-study work rights remain, but they now operate within stricter boundaries. Australia’s updated framework is likely to reward students who choose courses aligned with skills demand, understand their work limits clearly, and can demonstrate job-ready capabilities in a more competitive graduate market.