News Briefing

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

Oct 2, 2026News Briefingwww.peakmigration.com.au

Australia will tighten its student visa program on 2 October 2026 and, at the same time, reshuffle processing priorities for most skilled‑migration visas.

Student‑visa restrictions

On‑shore applications barred
A new legislative instrument expands the list of visa subclasses that cannot lodge a subclass 500 (Student) or subclass 590 (Student Guardian) visa while physically in Australia. The added subclasses are:

  • 400 Temporary Work (Short‑Stay Specialist)
  • 407 Training
  • 408 Temporary Activity
  • 417 Working Holiday
  • 457 Temporary Work (Skilled) – repealed but still referenced
  • 462 Work and Holiday
  • 482 Skills in Demand
  • 482 Temporary Skill Shortage (repealed)

The original barred subclasses remain: 485, 600, 601, 602, 651, 771, 988, 995, 403.

Closing the “off‑shore then on‑shore” loophole
Previously, applicants could submit a student‑visa request from abroad, return to Australia, and obtain a Bridging Visa A while awaiting a decision. The second instrument now requires the applicant to be outside Australia at the time of decision, meaning a Bridging Visa A cannot be granted in this scenario.

Exceptions for existing student visa holders
Existing holders must generally apply from outside Australia, except for:

  • Defence students
  • Foreign‑Affairs students
  • School students
  • Doctoral students
  • Students whose provider has defaulted
  • Students needing a further visa to finish the principal course for which the current visa was granted
  • Students progressing to a higher Australian Qualifications Framework (AQF) level (or to any AQF level if the previous course had none)

Secondary applicant (partner/dependent) restrictions
A secondary applicant can lodge a valid visa only 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 or ASEAN country
  • Specific visa holder subject to transitional arrangements, or a child born in Australia

All secondary applicants must combine their application with the primary applicant, and if the combined application is made on‑shore, all applicants must be outside Australia.

Other on‑shore changes

  • The 28‑day window to lodge a new on‑shore student visa after the previous visa expires is removed.
  • Limited on‑shore options remain for former student‑visa holders whose cancellation was overturned by the Administrative Review Tribunal.
  • No changes affect applications lodged before 2 October 2026.

Extension of student‑transfer restrictions

Standard 7 of the National Code of Practice for Providers of Education and Training to Overseas Students is temporarily extended until 1 July 2027. During this period, providers may not enrol an overseas student transferring from another registered provider unless the student has completed at least 12 months of the principal course with the releasing provider (or an approved exception applies). After 1 July 2027, the required period will be reduced to 6 months.

Skilled‑visa processing priorities (Ministerial Directions 121 & 122)

Effective 19 September 2026, Ministerial Direction 121 (MD 121) and Ministerial Direction 122 (MD 122) replace the earlier directions and set new processing priorities for skilled visas.

Visas covered

  • MD 121 – Subclass 482 Skills in Demand (and the now‑repealed subclass 482 Temporary Skill Shortage).
  • MD 122 – All other skilled visas except subclass 858 Global Talent, including: 186, 187, 189, 190, 191, 489, 491, 494, 887, 888.

Priority criteria

  1. Applications linked to the following sectors or national interests: Construction, Healthcare, Teaching, Agriculture, Aquaculture, Fishing, Resources, law‑enforcement, and defence.
  2. For MD 121 only: applications in the Specialist Skills stream of the Skills in Demand visa.
  3. Applications where the applicant was in Australia at the time of lodgement.
  4. Applications where the primary applicant was outside Australia at lodgement and the application is not combined with another person’s application.
  5. All remaining applications are processed after the above categories.

These reforms aim to tighten on‑shore student‑visa pathways, close previous loopholes, and align skilled‑migration processing with Australia’s current labour‑market priorities.