More student visa restrictions commence 2 October 2026; Skilled processing priority shake-up (again)

The government has swung into action, rolling out reforms to Australia’s studcnt visa program promised in the announcement from the Minister of Immigration last month.

New student visa restrictions arrived over three legislative instruments.

Visa holders barred from lodging student visas while in Australia

The first instrument expands the number of visa subclasses that are barred from lodging a subclass 500 – Student visa or subclass 590 – Student Guardian visa in Australia. Added to the list are the:

subclass 400 – Temporary Work (Short Stay Specialist) visa

subclass 407 – Training visa

subclass 408 – Temporary Activity visa

subclass 417 – Working Holiday visa

subclass 457 – Temporary Work (Skilled) visa

subclass 462 – Work and Holiday visa

subclass 482 – Skills in Demand visa

subclass 482 – Temporary Skill Shortage visa

The original list included the:

  • subclass 485 – Temporary Graduate visa

  • subclass 600 – Visitor visa

  • subclass 601 – Electronic Travel Authority visa

  • subclass 602 – Medical Treatment visa

  • subclass 651 – eVisitor visa

  • subclass 771 – Transit visa

  • subclass 988 – Maritime Crew visa

  • subclass 995 – Diplomatic Temporary) – primary visa holders only

  • subclass 403 – Temporary Work (International Relations) – Domestic Worker (Diplomatic or Consular) stream

Closing the returning to Australia loophole

The above restriction were previously circumvented by lodging the visa application offshore, returning to Australia, and lodging a Bridging visa A application to remain until a decision is made.

This loophole is now closed by the second instrument.

This is because where the restriction applies, they must be outside Australia at the time of decision. By doing this, a Bridging visa A cannot be granted, as this visa cannot be granted while the person is in Australia.

Further amendments include that existing student visa holders must generally apply when outside Australia, except for those listed in the third instrument:

  • Defence students,

  • Foreign Affairs students,

  • School students,

  • Doctoral students;

  • Students who are unable to complete a registered course due to provider default;

  • Students who require a further visa to complete the principal course of study for which their current visa was granted; and

  • Students who demonstrate course progression, meaning their new course must have a higher AQF level than their completed course. If they did not study an AQF level course, then the new course must have an AQF level.

Secondary visa applicant restrictions

Secondary visa applicants, which are partners and dependent children, can only make a valid application if they are family of a:

  • foreign government scholarship recipient

  • doctoral student

  • student affected by provider default

  • student seeking to complete their studies

  • Defence or Foreign Affairs student

  • passport holder from a Pacific regional country or an ASEAN member country

  • specific visa holder subject to transitional arrangements and children born in Australia

Subsequent visa applications are no longer possible, and therefore the secondary applicants must combine their applications with the primary applicant.

If a combined application must be made when outside Australia, all applicants must be outside Australia.

The possibility of lodging an onshore student visa within 28 days of a student visa expiring is removed. There is limited scope for former student visa holders who had their visa cancellation revoked by the Administrative Review Tribunal.

None of these changes affects applications lodged prior to today.

Student transfer restrictions extended

What does affect current students is the extension of temporary restrictions on course transfers that come under the National Code of Practice for Providers of Education and Training to Overseas Students.

Standard 7 temporarily extends the provider transfer restriction period for overseas students transferring from non-school providers until 1 July 2027.

Until then, education providers must not knowingly enrol an overseas student transferring from another registered provider unless the student has completed at least 12 months of their principal course with the releasing provider, or an exception applies. This will then be reduced to requiring the completion of at least 6 months of the pricipal course.

Ministerial Direction 121 and 122 for skilled visas

The student visa changes is the second tranche of reforms behind new Ministerial Direction 121 and Ministerial Direction 122 for skilled visa processing priorities. These new directions came into effect on 19 September 2026, replacing directions enacted less than two months earlier.

Ministerial Direction 121 affects subclass 482 – Skills in Demand visas, and the now repealed subclass 482 – Temporary Skill Shortage visas. Ministerial Direction 122 affects all other skilled visas except the subclass 858 – Global Talent visa, namely:

  • subclass 186 – Employer Nomination Scheme visa

  • subclass 187 – Regional Sponsored Migration Scheme visa

  • subclass 189 – Skilled Independent visa

  • subclass 190 – Skilled Nominated visa

  • subclass 191 – Permanent Residence (Skilled Regional) visa

  • subclass 489 – Skilled Regional (Provisional) visa

  • subclass 491 – Skilled Work Regional (Provisional) visa

  • subclass 494 – Skilled Employer Sponsored Regional (Provisional) visa

  • subclass 887 – Skilled Regional visa

  • subclass 888 – Business Innovation and Investment (Permanent) visa

They operate very similarly with one exception only applying to Ministerial Direction 121. The new priorities are:

  1. Visa applications relating to Construction, Healthcare, Teaching, Agriculture, Aquaculture, Fishing, and Resources sectors, or Australia's law enforcement and defence interests.

  2. Visa applications in the Specialist Skills stream of the Skills in Demand visa. **Only applies to Ministerial Direction 121

  3. Visa applications where the applicant was in Australia at the time they lodged their application.

  4. Visa applications where the primary applicant was outside of Australia at the time they lodged their application and whose application is not combined with another person’s application at any time.

  5. All other visa applications.