Australia’s Liberal–National Coalition has unveiled an election-year proposal to lift the allowable work limit for subclass 500 student-visa holders from 48 to 60 hours per fortnight while simultaneously reducing annual student-visa grants to 240,000—a cut of roughly 15 percent on current levels. Shadow Immigration Minister Dan Tehan argues the policy would ‘restore integrity to the system’ by ensuring those who do secure visas can legally work more hours to cover rising living costs, thereby reducing wage exploitation.
Industry reaction has been mixed. Hospitality, retail and agribusiness groups welcome the extra labour flexibility, noting that roster gaps routinely force students to breach their 48-hour cap, exposing employers to hefty penalties. Universities, however, fear that headline cuts to overall numbers will compound the enrolment slump triggered by recent visa refusals. They warn that fewer students plus higher work hours could tip the balance further toward work-focused migrants rather than genuine scholars, undermining the sector’s academic reputation.
![Opposition Floats 60-Hour Work-Cap and Smaller Student-Intake from July 2026]()
Navigating these shifting regulations can be daunting; VisaHQ’s Australian portal (https://www.visahq.com/australia/) offers step-by-step guidance, real-time updates and document-processing support for both prospective students and sponsoring employers, helping them adapt quickly should the proposed hour increase and quota reduction take effect.
For mobility and HR managers the proposal, if enacted, would broaden part-time employment options for international interns and graduates, but may also intensify competition for affordable housing in major cities. Sponsors should watch for flow-through effects on the Temporary Graduate (485) visa pipeline, as a smaller student cohort today means a smaller graduate-talent pool tomorrow.
The government has yet to endorse or reject the idea. Home Affairs Minister Clare O’Neil noted that any change would need to be weighed against the Migration Strategy released in December 2025, which emphasised ‘quality over quantity’ and stronger links between education and permanent skilled pathways. Debate on the proposal is expected to dominate the next sitting fortnight when Parliament resumes on 3 March.
Industry reaction has been mixed. Hospitality, retail and agribusiness groups welcome the extra labour flexibility, noting that roster gaps routinely force students to breach their 48-hour cap, exposing employers to hefty penalties. Universities, however, fear that headline cuts to overall numbers will compound the enrolment slump triggered by recent visa refusals. They warn that fewer students plus higher work hours could tip the balance further toward work-focused migrants rather than genuine scholars, undermining the sector’s academic reputation.
Navigating these shifting regulations can be daunting; VisaHQ’s Australian portal (https://www.visahq.com/australia/) offers step-by-step guidance, real-time updates and document-processing support for both prospective students and sponsoring employers, helping them adapt quickly should the proposed hour increase and quota reduction take effect.
For mobility and HR managers the proposal, if enacted, would broaden part-time employment options for international interns and graduates, but may also intensify competition for affordable housing in major cities. Sponsors should watch for flow-through effects on the Temporary Graduate (485) visa pipeline, as a smaller student cohort today means a smaller graduate-talent pool tomorrow.
The government has yet to endorse or reject the idea. Home Affairs Minister Clare O’Neil noted that any change would need to be weighed against the Migration Strategy released in December 2025, which emphasised ‘quality over quantity’ and stronger links between education and permanent skilled pathways. Debate on the proposal is expected to dominate the next sitting fortnight when Parliament resumes on 3 March.
