The era of generous post-study work rights granted during the pandemic is ending. In an interview published on 3 January, Education Department officials confirmed that from mid-2026 the two-year “COVID extension” on Temporary Graduate (subclass 485) visas will be scrapped. Graduates will again be limited to the standard stay periods—two to four years depending on qualification level—and critically, a second 485 or pathway to the new Skills-in-Demand visa will only be available if the graduate’s field aligns with national or state shortage lists.
The reform is part of the government’s 2025-26 Migration Strategy, which puts a “skills-first” lens on every temporary-to-permanent pathway. Universities must now demonstrate that courses feed priority sectors such as clean-energy engineering, health and advanced manufacturing. International students face tighter entry standards, restored 48-hour work caps during term and higher visa-application charges.
VisaHQ’s Australian specialists can help students, universities and employers adapt to these changes by offering real-time guidance on subclass 485 eligibility, shortage-list alignment and alternative sponsorship routes. Their platform (https://www.visahq.com/australia/) breaks down the latest requirements into clear checklists and provides live support to ensure applications are lodged correctly and on time.
![Post-Study Work Rights Tightened: Second 485 Visa Now Tied to Skills Shortage Lists]()
For employers, the subclass 485 visa has traditionally served as a low-risk probation window before sponsorship. With time on the visa shrinking, companies will need faster performance reviews and earlier sponsorship decisions or risk losing promising graduates. Recruiters should realign campus strategies toward disciplines featured on the updated shortage lists.
Students already in Australia should review their timelines: those whose majors fall outside shortage areas may need to pivot to state sponsorship or employer-sponsored routes sooner than planned. Agents are advising new applicants to budget for higher costs and to gather evidence—such as skills assessments—well before graduation.
Visa advisors expect demand for regional study options to stay strong because the extra post-study years offered outside the major cities have survived the overhaul, reinforcing Canberra’s goal of spreading population growth beyond Sydney and Melbourne.
The reform is part of the government’s 2025-26 Migration Strategy, which puts a “skills-first” lens on every temporary-to-permanent pathway. Universities must now demonstrate that courses feed priority sectors such as clean-energy engineering, health and advanced manufacturing. International students face tighter entry standards, restored 48-hour work caps during term and higher visa-application charges.
VisaHQ’s Australian specialists can help students, universities and employers adapt to these changes by offering real-time guidance on subclass 485 eligibility, shortage-list alignment and alternative sponsorship routes. Their platform (https://www.visahq.com/australia/) breaks down the latest requirements into clear checklists and provides live support to ensure applications are lodged correctly and on time.
For employers, the subclass 485 visa has traditionally served as a low-risk probation window before sponsorship. With time on the visa shrinking, companies will need faster performance reviews and earlier sponsorship decisions or risk losing promising graduates. Recruiters should realign campus strategies toward disciplines featured on the updated shortage lists.
Students already in Australia should review their timelines: those whose majors fall outside shortage areas may need to pivot to state sponsorship or employer-sponsored routes sooner than planned. Agents are advising new applicants to budget for higher costs and to gather evidence—such as skills assessments—well before graduation.
Visa advisors expect demand for regional study options to stay strong because the extra post-study years offered outside the major cities have survived the overhaul, reinforcing Canberra’s goal of spreading population growth beyond Sydney and Melbourne.
