Australia’s Liberal–National Coalition has unveiled a proposal to increase the work-rights cap for holders of the Subclass 500 student visa from 48 hours to 60 hours per fortnight, while simultaneously reducing the annual number of student-visa grants to 240,000—about 15 per cent below current levels. Shadow Immigration Minister Dan Tehan argues the twin measures will “restore integrity” by rewarding genuine students who support themselves, yet curb what he calls a drift towards “back-door labour migration”.
Industry reaction is mixed. Hospitality, retail and agribusiness lobby groups, struggling with chronic staff shortages, back the higher cap. Universities, however, warn that a smaller overall quota will intensify a post-pandemic enrolment slump already aggravated by tougher Genuine Student tests and higher visa refusal rates. They fear Australia’s global competitiveness—especially against Canada and the UK, which have each recently tightened post-study work rights—could suffer if prospective students perceive the country as primarily a labour market rather than an education destination.
![Opposition plan would lift student-visa work rights but cap overall intake]()
Amid this shifting regulatory terrain, VisaHQ can help applicants and sponsoring employers stay on top of the changes. Its Australia portal (https://www.visahq.com/australia/) offers real-time updates on Subclass 500 requirements, personalised document checklists and end-to-end filing assistance, streamlining the process even as rules evolve.
For mobility and HR managers the policy shift, if adopted, could widen the part-time talent pool for entry-level roles and seasonal peaks, but it may also fuel competition for already scarce affordable housing around campuses. Employers who rely on the Temporary Graduate (subclass 485) pipeline should note that a smaller student cohort today means a tighter graduate labour market tomorrow.
The government has not endorsed the proposal and is expected to weigh it against the December 2025 Migration Strategy, which champions “quality over quantity” and stronger links between study and skilled-migration pathways. The debate is likely to dominate parliamentary sittings when they resume next week; mobility teams should track the outcome closely as 2026 intake marketing campaigns to key source countries are already under way.
Industry reaction is mixed. Hospitality, retail and agribusiness lobby groups, struggling with chronic staff shortages, back the higher cap. Universities, however, warn that a smaller overall quota will intensify a post-pandemic enrolment slump already aggravated by tougher Genuine Student tests and higher visa refusal rates. They fear Australia’s global competitiveness—especially against Canada and the UK, which have each recently tightened post-study work rights—could suffer if prospective students perceive the country as primarily a labour market rather than an education destination.
Amid this shifting regulatory terrain, VisaHQ can help applicants and sponsoring employers stay on top of the changes. Its Australia portal (https://www.visahq.com/australia/) offers real-time updates on Subclass 500 requirements, personalised document checklists and end-to-end filing assistance, streamlining the process even as rules evolve.
For mobility and HR managers the policy shift, if adopted, could widen the part-time talent pool for entry-level roles and seasonal peaks, but it may also fuel competition for already scarce affordable housing around campuses. Employers who rely on the Temporary Graduate (subclass 485) pipeline should note that a smaller student cohort today means a tighter graduate labour market tomorrow.
The government has not endorsed the proposal and is expected to weigh it against the December 2025 Migration Strategy, which champions “quality over quantity” and stronger links between study and skilled-migration pathways. The debate is likely to dominate parliamentary sittings when they resume next week; mobility teams should track the outcome closely as 2026 intake marketing campaigns to key source countries are already under way.
