Australia’s 2025–26 Migration Strategy—unveiled last month—officially took effect on 2 January 2026, reshaping the Temporary Graduate (subclass 485) visa that thousands of Indian students rely on for early-career experience.
Key changes include the sunset of the pandemic-era two-year extension and a return to stay periods closely linked to degree level and regional study location. For example, master’s graduates in metropolitan areas will now receive a two-year post-study visa instead of four, unless their qualification is on a revised skills-shortage list.
![Australia’s new Migration Strategy tightens post-study work visas, alters plans for Indian graduates]()
Work-hour caps for Subclass 500 student visas—re-introduced at 48 hours per fortnight in July 2023—remain in force, curbing the ability of students to fund living expenses through extensive part-time work. The government argues the caps deter labour-market exploitation and refocus study as the primary visa purpose.
Indian education agents say the changes will push students to align course choices with Australia’s priority occupations or consider alternative destinations such as Canada or the UK. Employers who have built graduate-talent pipelines around the longer post-study window must now update workforce-planning models and sponsorship budgets.
The Department of Home Affairs will publish revised shortage lists in March 2026, after which universities expect to adjust marketing of STEM and regional programmes to Indian applicants.
Key changes include the sunset of the pandemic-era two-year extension and a return to stay periods closely linked to degree level and regional study location. For example, master’s graduates in metropolitan areas will now receive a two-year post-study visa instead of four, unless their qualification is on a revised skills-shortage list.
Work-hour caps for Subclass 500 student visas—re-introduced at 48 hours per fortnight in July 2023—remain in force, curbing the ability of students to fund living expenses through extensive part-time work. The government argues the caps deter labour-market exploitation and refocus study as the primary visa purpose.
Indian education agents say the changes will push students to align course choices with Australia’s priority occupations or consider alternative destinations such as Canada or the UK. Employers who have built graduate-talent pipelines around the longer post-study window must now update workforce-planning models and sponsorship budgets.
The Department of Home Affairs will publish revised shortage lists in March 2026, after which universities expect to adjust marketing of STEM and regional programmes to Indian applicants.
Source: India Today
