Visitor, Working Holiday, Student and Graduate Visas in the Firing Line as Government Flags Major Reforms

Hours after the new skilled-visa Directions took effect, the Albanese Government outlined a separate package of proposed reforms targeting temporary entrants. According to a policy briefing released 21 September, future Subclass 600 Visitor visas would carry Condition 8503 (No Further Stay) by default, preventing onshore applications for most other visas unless a waiver is granted. For Working Holiday Makers, the Government is considering a ballot for second- and third-year extensions with annual caps of 45,000 and 5,000 respectively. UK passport holders may be exempt due to the bilateral Free Trade Agreement, but other nationals – including Germans, French and Canadians – would have to rely on lottery-style selection after completing regional work. International students face the tightest squeeze: family members could be barred from accompanying most new students, and graduates may see similar limits. The measures aim to trim net overseas migration to 225,000 by 2027-28 without imposing a blunt overall cap. Universities Australia has warned the changes could erode a $54 billion export sector, while hospitality and care employers fear labour shortages. Because formal legislative instruments are still being drafted, none of the proposals are yet law. Corporations should — for now — continue sourcing assignees under current rules but plan for a 6- to 12-month horizon in which onshore pathway flexibility may disappear. Mobility teams should also flag potential morale issues for staff whose partners or children could be excluded under future settings.