Migration update: employing international students and graduates

3 minute read  23.02.2023 Taya Hunt, Megan Arends

The Government made several announcements regarding Australia's Migration Program on Wednesday, 22 February 2023. We explore the details and what they mean for employers.

In February 2023, the Government announced specific changes relevant to student visa holders and graduates. It has also provided an update on the comprehensive review of Australia's migration program.

Work restrictions for Student Visa holders

A COVID concession is currently in place for Student Visa holders, enabling primary and secondary student visa holders to work unrestricted hours, above the usual cap of 40 hours per fortnight.

The Government has now confirmed that this concession will end on 30 June 2023.

From 1 July 2023, the working hours cap for student visa holders will be re-introduced, but will be increased to a maximum of 48 hours per fortnight.
All employers of student visa holders need to be aware of this change, and should ensure that they proactively manage any necessary adjustments to the employment arrangements of employees impacted by this change.

Once the cap is reintroduced, student visa holders who work in breach of these work restrictions are at risk of visa cancellation. Employers who permit employees to work in breach of visa conditions will be in breach of the Employer Sanctions Provisions of the Migration Act 1954 (Cth).

Changes to 485 Graduate Visas

The Government has also announced that it is extending post-study work rights for eligible international students with select qualifications in verified skilled shortage areas who have graduated from an Australian higher education provider.

This change, which will come into effect from 1 July 2023, will provide eligible graduates with an additional two years on their Temporary Graduate (subclass 485) visa. This will see visa durations increase from:

  • Two years to four years for select Bachelor degrees
  • Three years to five years for select Masters degrees
  • Four years to six years for all Doctoral degrees.

Existing settings for regional and remote Australia will also be maintained, and where applicable, these visa applicants will also be eligible for the additional two years.

Jobs and Skills Australia and the Department of Education have developed lists of occupations in demand and related qualifications in order to implement this extension. Currently targeted skills include health, teaching, engineering and agricultural fields. The skills list will be considered on an annual basis and updated as needed in response to the labour market. A full list of the currently identified 'in demand' occupations can be found here. Students will need to carefully assess if their qualification will make them eligible for the additional stay period.

Eligible graduates with a valid Temporary Graduate Visa on 1 July 2023 or who apply for a Temporary Graduate Visa after 1 July 2023 will be considered for the two year extension. Graduates whose visas expire before 1 July 2023 can consider extending their stay by applying for Temporary Activity visa (subclass 408) Australian Government endorsed events (COVID-19 Pandemic event).

Review of Australia's migration program

Minister for Home Affairs, Clare O'Neil, through a media release to 22 February 2023, provided an update on the current comprehensive Review of Australia's migration program, which is still underway.

Eight key changes have been identified to drive a new model of migration in Australia. In summary, these are:

  1. Defining the purpose and priorities of the migration program;
  2. Redesigning the fundamental structure of the migration program, with a focus on the balance between temporary and permanent visa programs;
  3. Removal of policies that provide 'permanent' temporary conditions;
  4. Focus on needed skills, in particular delivering skills to regions and to small business;
  5. Improving recognition of overseas skills to translate to the local labour market;
  6. Jobs & Skills Australia to play a formal role in the migration program, to coordinate labour market needs, training and education;
  7. Addressing migration worker exploitation; and
  8. Simplifying the administration of the system.

The Review will be preparing a draft architecture for the new migration system, which is expected to be released for consultation and discussion in April 2023.


How can MinterEllison assist?

MinterEllison can assist by providing strategic advice to employers on their international recruitment and global mobility needs, and help employers navigating Australia's Migration program to address current skill shortages.

If you have any questions, please don't hesitate to contact us.

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