Australia has begun 2026 by signalling a decisive break with the pandemic-era generosity that allowed many international graduates to linger in the country on Temporary Graduate (subclass 485) visas. In an interview published on 2 January 2026, Education Department officials confirmed that the two-year “COVID extension” on post-study work rights will be scrapped from mid-2026. Standard stay periods will once again depend on qualification level and, crucially, on whether a graduate’s discipline aligns with occupations on national or state shortage lists.
The shift is part of the government’s 2025-26 Migration Strategy, which emphasises a “skills-first” approach over pure credential recognition. Graduates who cannot demonstrate a close fit with shortage occupations will find it harder to obtain a second 485 visa or transition to the forthcoming Skills-in-Demand visa. Universities—already coping with tighter entry standards—must now prove that their programmes feed priority sectors such as clean-energy engineering, health and advanced manufacturing.
Prospective applicants and employers who need help navigating these fast-moving changes can turn to VisaHQ; the service’s Australian portal (https://www.visahq.com/australia/) offers up-to-date guidance on subclass 485 requirements, occupation-list checks and streamlined document processing, making it simpler to chart a compliant path from graduation to skilled migration.
![Australia Narrows Post-Study Work Rights, Linking Visa Extensions to Skills Shortages]()
For business, the message is clear: the post-study visa will become a more reliable on-ramp to permanent residence for genuinely skilled talent, but a less convenient back-door work permit for generic degree-holders. Mobility managers should re-map recruitment pipelines, target graduates whose majors match the updated shortage lists and budget for faster sponsorship if key hires risk timing-out on a shorter 485.
International students will also feel the pinch during their studies. The government has restored the 48-hour-per-fortnight work cap (full-time during breaks only) and is stepping up tax-office data-matching to catch breaches. Agents are warning applicants to factor stricter work limits and higher visa-application-charges into financial plans. Meanwhile, regional study incentives—extra post-study years for graduates who remain outside the metros—have survived the cull, underscoring Canberra’s push to spread population growth beyond Sydney and Melbourne.
In practical terms, employers that still view the 485 as a two-year probation window will have considerably less time to assess and sponsor graduate talent. Early performance reviews, quicker skills assessments and pre-emptive labour-market-testing will be essential to avoid losing promising hires to visa expiry.
The shift is part of the government’s 2025-26 Migration Strategy, which emphasises a “skills-first” approach over pure credential recognition. Graduates who cannot demonstrate a close fit with shortage occupations will find it harder to obtain a second 485 visa or transition to the forthcoming Skills-in-Demand visa. Universities—already coping with tighter entry standards—must now prove that their programmes feed priority sectors such as clean-energy engineering, health and advanced manufacturing.
Prospective applicants and employers who need help navigating these fast-moving changes can turn to VisaHQ; the service’s Australian portal (https://www.visahq.com/australia/) offers up-to-date guidance on subclass 485 requirements, occupation-list checks and streamlined document processing, making it simpler to chart a compliant path from graduation to skilled migration.
For business, the message is clear: the post-study visa will become a more reliable on-ramp to permanent residence for genuinely skilled talent, but a less convenient back-door work permit for generic degree-holders. Mobility managers should re-map recruitment pipelines, target graduates whose majors match the updated shortage lists and budget for faster sponsorship if key hires risk timing-out on a shorter 485.
International students will also feel the pinch during their studies. The government has restored the 48-hour-per-fortnight work cap (full-time during breaks only) and is stepping up tax-office data-matching to catch breaches. Agents are warning applicants to factor stricter work limits and higher visa-application-charges into financial plans. Meanwhile, regional study incentives—extra post-study years for graduates who remain outside the metros—have survived the cull, underscoring Canberra’s push to spread population growth beyond Sydney and Melbourne.
In practical terms, employers that still view the 485 as a two-year probation window will have considerably less time to assess and sponsor graduate talent. Early performance reviews, quicker skills assessments and pre-emptive labour-market-testing will be essential to avoid losing promising hires to visa expiry.
