Australia Temporary Graduate Visa Changes 2025–2026: What International Students Need to Know

In 2025–2026, Australia has significantly updated its migration system, especially the rules for international students who want to stay and work in the country after graduation. These changes are important for students from India and other countries considering Australia as a study destination.

The new focus is not just on degrees, but also on skills and workforce needs. This shift affects how long you can stay, options for work, and future migration pathways. Here’s a clear explanation of what’s changing — and what it means for students.

What Is the Temporary Graduate Visa (Subclass 485)?

Australia’s Temporary Graduate Visa (Subclass 485) is a post-study work visa that allows international students who have completed eligible qualifications to live, work, and gain experience in Australia for a limited time.

Before 2025, international graduates could rely on this visa as a stepping stone to longer stays. But now, the system is being recalibrated to prioritise skills and labour market needs over simply finishing a degree. 

Major Changes in 2025–2026

1. Shorter Stay Periods

Previously, many international graduates could stay for up to two or more years after finishing their studies. Under the new rules, the time you can stay after graduation is shortened, especially if your degree is not in a priority occupation.

This means students must plan more carefully and may have fewer years to gain work experience. 

2. Skills Over Degrees

Australia now emphasises skills alignment with workforce needs. This means:

• Graduates in fields like health, engineering, technology, teaching, and aged care may have better opportunities.

• If your degree does not match priority skills lists, you could face limited stay options or shorter visa durations.

In simple terms: Australia is now choosing remains based on what the labour market needs most. 

3. Work Rights Are More Restricted

Under the earlier system, many students could work part-time while studying and sometimes find longer work options afterward.

Now, work rights are more conditional — emphasising that paid work is a privilege tied to meeting specific requirements, not an automatic right. This is important because many Indian students depend on part-time jobs to support themselves financially. 

Why Australia Is Making These Changes

Australia’s new migration strategy reflects wider global trends in education and immigration. These include:

• Economic planning: The government is matching post-study migration with jobs that help the economy recover and grow.

• Skill prioritisation: Instead of letting graduates stay just because they studied in Australia, the focus is now on whether they fill a skill gap.

• Moving past COVID-era flexibility: During the pandemic, temporary visas and extensions were relaxed. Now, the focus is shifting back to a more structured system. 

These changes are not unique to Australia. Many countries have been reviewing their migration rules, especially for students and skilled workers, to align with national priorities and global labour demands.

What This Means for Prospective Indian Students

1. Choose Your Course Carefully

If you plan to study in Australia with an aim to work there afterward, your field of study matters. Choose programs that align with high-demand skills such as:

• Healthcare (nursing, medicine)

• Engineering and technology

• IT and software development

• Aged care and social services

These fields are more likely to offer post-study work opportunities under the new system. 

2. Plan for Post-Study Work Early

Gone are the days when you could assume a long stay after graduation. With more conditions now in place:

• Research job demand before selecting your study program.

• Plan internships or work placements that may help with future visa eligibility.

• Consider how your degree matches Australia’s labour market priorities. 

3. Don’t Expect Automatic Extensions

Previously, temporary visas sometimes extended automatically if there were labour shortages. Now, extensions are conditional, and not guaranteed. Students must meet strict criteria to qualify. 

How This Affects Your Long-Term Plans

If your long-term goal is to settle in Australia, the new changes mean:

• You must be strategic about choosing the right degree and skills.

• You may need to build additional qualifications or work experience.

• Permanent residency pathways may become more competitive.

Australia is not closing its doors — but it is tightening the rules to ensure that only the most qualified and skilled graduates can extend their stay. 

Summary: What Every Indian Student Should Remember

Final Thoughts

The Australia Temporary Graduate Visa changes for 2025–2026 show a clear shift in how international students are viewed in terms of migration. While staying and working after studies is still possible, it is now more competitive and skills-focused.

Students who want to study abroad — especially from India — must be well-informed, choose their programs wisely, and plan their next steps carefully.

If you need help understanding these changes and how they affect your study and career plans in Australia, Blue Horse Education is here to guide you every step of the way.