What Are the Recent Changes to Student Visa Eligibility?

In Short

• The application fee for the Student Visa has increased to $1,600 as of 1 July 2024.
• Temporary Graduate Visa holders must leave Australia to apply for a Student Visa.
• These changes aim to reduce visa hopping and extended stays on temporary visas.

Tips for Businesses
If your business employs or sponsors international students, it is crucial to be aware of these new visa restrictions. Ensure compliance by advising your employees on the updated visa costs and application processes, especially for those on Temporary Graduate Visas who plan to continue studying.

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Table of Contents

• Overview of the Student Visa 
• What Changes Were Implemented?
• What Do These Changes Mean?
• Why Did These Changes Occur?
• Key Takeaways 
• Frequently Asked Questions 

On 1 July 2024, former Minister for Home Affairs Hon. Claire O’Neil announced in a joint media conference with the Hon Brendan O’Connor MP, the Hon Jason Clare MP, and the Hon Andrew Giles MP the implementation of new Student Visa reforms, effective immediately. The changes aim to tighten restrictions on Student Visa applications in the government’s attempt to curb a problem they define as ‘permanent temporariness’ and visa hopping. This article examines the previous status of the Student Visa and what these changes mean for the future. 

Overview of the Student Visa 

The current Student Visa Subclass 500 is a program that gives all overseas residents the ability to come to Australia to study and learn at Australian educational facilities. The duration of the visa is typically the length of the course, with a maximum of five years on offer.  

The Student Visa typically includes a host of conditions, such as limiting the number of hours the student can work and the academic requirements the student must meet. One condition that can typically applies to the Student Visa is condition 8534—No Further Stay. 

Condition 8534 limits the substantive visas an applicant can apply for whilst on the Student Visa. The three visas that can be applied for are: 

• Protection Visa Subclass 866: This is designed for refugees and those seeking protection from the Australian government. 
• Student Guardian Visa Subclass 590: Only the parents and guardians of a student can access this. 
• Temporary Graduate Visa Subclass 485: This visa lets the student work for two to three years after completing their studies in Australia. 

Additionally, the Temporary Graduate Visa Subclass 485 visa has three streams: 

1. Post-Vocational Education Work Stream; 
2. Post-Higher Education Work Stream; and 
3. Second Post-Higher Education Work Stream. 

What Changes Were Implemented?

Two major changes were made to the eligibility criteria for the Student Visa. They were: 

• changes to the price; and
• limitations on who can apply. 

The first change is relatively self-explanatory. The initial government fees associated with the Student Visa have increased from $710 to $1,600, representing an increase of over 120%. This will significantly add to the already expensive process of an overseas student coming to Australia to study. 

The second and key change to note is that the Australian government is limiting the requirements of who can apply for a Student Visa whilst in Australia. The following visa holders may not apply for a Student Visa whilst in Australia:

• Subclass 485 (Temporary Graduate); 
• Subclass 600 (Visitor); 
• Subclass 601 (Electronic Travel Authority); 
• Subclass 602 (Medical Treatment); 
• Subclass 651 (eVisitor); 
• Subclass 988 (Maritime Crew). 

At the top of the list are 485 Temporary Graduate visa holders. If you recall, earlier in this article, we said that a Student Visa holder may apply for only three types of visa: Protection, Student Guardian, and Temporary Graduate Visa.

What Do These Changes Mean?

In summary, if you are on a Temporary Graduate Visa, you must leave Australia before applying for a new Student Visa. Once offshore, you will need to restart the process of applying for a Student Visa.  

Why Did These Changes Occur?

These changes are part of the New Migration Strategy, which was published in December 2023. 

The changes to Student Visas seek to curb a problem the government has identified as visa hopping. This is where overseas residents stay in Australia for an extended period as they move between Student and Temporary Graduate Visas. The problem area identified was not those studying four-year bachelor degrees at Australian Universities but rather those studying short-term vocational courses, who could transition from Student Visa to Temporary Graduate Visa and back again, cycling through the temporary visa scheme. 

Key Takeaways 

The Australian government has introduced new reforms to the eligibility criteria for Student Visas. The first is that the cost has increased, while the second is that Temporary Graduate Visa holders can no longer apply for Student Visas onshore. The purpose of this is to reduce the number of temporary visa holders who remain on non-substantive visas for an extended period of time. Overall, the key effects of these changes are that: 

• Student Visa holders can only typically apply for one of the three substantive visas following their study: Protection Visa Subclass 866, Student Guardian Visa Subclass 590, and Temporary Graduate Visa Subclass 485 (if no further stay condition applies); and
• Temporary Graduate Visa holders can no longer apply for Student Visas onshore. 

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Frequently Asked Questions