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Feb 20, 2026

Coalition floats 60-hour work-rights cap for Student Visa holders

Coalition floats 60-hour work-rights cap for Student Visa holders
Australia’s international education sector was jolted on 19 February when migration consultancy RACC flagged a fresh policy proposal buried in the Parliamentary Budget Office’s 2025 Election Commitments Report. The Coalition is exploring legislation that would raise the on-course work-rights limit for Student Visa (subclass 500) holders from the current 48 hours per fortnight to 60 hours.

The idea is pitched as a revenue measure: PBO costings suggest an extra AU$334 million in income-tax receipts over the forward estimates if 90 percent of students now working the maximum hours take on an additional 12 hours of paid work every two weeks. The higher cap would commence on 1 July 2026 and apply year-round, with no change to the existing “unlimited hours” concession during official semester breaks.

For universities and colleges, the proposal is a double-edged sword. Expanded work rights will make Australia more attractive in a fiercely competitive study-abroad market—particularly against the UK’s stricter 20-hour limit—but providers fear that longer shifts could further erode lecture attendance and progression rates, already strained by record inflation and housing shortages in Sydney and Melbourne. Employers in hospitality, aged care and regional agrifood, meanwhile, are lobbying in favour, arguing the change would relieve chronic skills gaps without drawing on permanent migration.

Coalition floats 60-hour work-rights cap for Student Visa holders


Navigating these potential adjustments can be tricky; VisaHQ, an online visa and passport services platform, provides up-to-date guidance and document processing for Australian visas at https://www.visahq.com/australia/ Their expertise can streamline applications for students, education agents and employers preparing for any new work-rights settings.

Crucially, nothing changes today. The Department of Home Affairs has issued no legislative instrument and will continue enforcing the 48-hour ceiling. Students who breach that condition risk visa cancellation, while sponsors face sanctions. Education agents are advising clients to ‘watch, but don’t act’ until an exposure draft appears—probably post-Budget 2026 if the Coalition wins office.

For corporate mobility managers, the message is to plan scenarios: should the 60-hour cap pass, part-time rostering models, overtime allowances and Fair Work compliance frameworks will need a refresh well ahead of July 2026. HR teams should also monitor downstream impacts on postgraduate research and graduate-work visa pathways, both of which rely on students successfully completing their courses on time.
VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.
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