Since July 2026, the Government has substantially changed how Australia’s immigration program operates. Significant reforms have been introduced through ministerial directions and changes to regulations made under existing legislation, rather than through new Bills amending the Migration Act. Further measures are being progressively implemented.

The policy direction became clearer in the Minister’s National Press Club address on 17 September, framed around “Who arrives; who stays; and who leaves?” The message was that Australia continues to need migration, but the Government wants greater control over entry, the duration of temporary stays and departures. Importantly, the Minister distinguished legitimate progression from study to skilled employment and permanent residence from repeated temporary visa applications used simply to prolong a stay.

For employers and individuals, the consequences extend beyond eligibility. Where an application is lodged, whether family members are included, the nominated occupation and the conditions attached to an existing visa can materially affect the available options.

Skilled visas: broader priorities, but not new eligibility pathways
Ministerial Direction 121 commenced on 19 September 2026, replacing Direction 119 for subclass 482 processing. It applies to new applications and applications already lodged but not finally determined, including remaining Temporary Skill Shortage applications. It changes processing priority—not the legal requirements for obtaining a visa. (see our update here)

The general processing order is now:

Priority	Applications
1	Qualifying occupations in construction, healthcare, teaching, agriculture, aquaculture, fishing and resources, together with occupations connected with Australia’s law enforcement and defence interests.
2	Eligible applications under the Specialist Skills stream.
3	Other applications where the primary applicant was in Australia when the application was lodged.
4	Applications where the primary applicant was outside Australia at lodgement and no secondary applicants are included.
5	Remaining applications, including offshore applications with accompanying family members that do not qualify for a higher priority.

The hierarchy is subject to the Direction’s exceptions which are yet to be seen in practice. Separate priorities under Direction 122 apply to specified permanent and provisional skilled visas, including subclass 186.

The broader priority categories are particularly welcome for agriculture, aquaculture, fishing and resources, alongside construction (aimed at housing and not infrastructure or renewables), healthcare, teaching, law enforcement and defence. Importantly, qualifying sector applications can now receive first priority whether the applicant is onshore or offshore. In our view, this addresses some of the concerns raised about the earlier settings.

However, working for a business in a priority industry does not automatically confer priority. The occupation and, where relevant, the actual work must satisfy the Direction’s definitions. For example, a Civil Engineer may qualify for construction priority, while a Human Resources Manager or Electrical Engineer working on the same project does not qualify merely because the project involves construction. Another priority category may nevertheless apply.

Direction 121 also requires departure from the normal order where the delegate is satisfied that compelling circumstances exist. This is potentially important in exceptional cases, but it is not a general urgent-processing entitlement.

Visitor visas: restrictions on applying for another visa in Australia
The Government has announced that “No Further Stay” conditions will be attached to visitor visas as part of its reform program. These conditions are not new, but their wider use would significantly restrict the ability to move from a visitor visa to another visa while remaining in Australia. As part of this initiative, the government confirmed that we can also expect this condition to be imposed on Electronic Travel Authorities (ETA) and eVisitor visas by the end of this year.

Where such a condition applies, the holder generally cannot make a valid application for most temporary or permanent visas in Australia unless an exception applies or the condition is waived. The individual visa grant notice and VEVO record must therefore be checked; the announcement should not be treated as automatically changing every existing visitor visa.

For example, someone whose visitor visa carries the relevant restriction generally cannot enter Australia, lodge a subclass 482 application and remain on the resulting bridging visa while it is processed. Unless a waiver is obtained (very difficult if not most unlikely), they would ordinarily need to depart and apply offshore. Their application would then fall within the applicable Direction 121 priority category.
Employers should not assume that bringing someone to Australia as a visitor will preserve an onshore work-visa pathway.

Working Holiday and Work and Holiday visas: tighter control over numbers and length of stay
Controls are already affecting access to the subclass 462 Work and Holiday program. Home Affairs lists some countries as paused for new first-visa applications. A pause on lodgements should not be confused with a blanket suspension of processing for every application already submitted, however the reality is that applications are currently not being processed.

Separately, the Government has announced a ballot system for second and third-year Working Holiday Maker visas. Under the announced approach, completing the required regional work would qualify a person to enter the ballot, rather than ensure access to another visa. Implementation dates and transitional arrangements remain important: an announcement is not the same as a rule already applying to every applicant.

UK passport holders require separate consideration. Their arrangements are governed by the Australia–UK Free Trade Agreement. The Minister said slower processing would continue while discussions with the United Kingdom take place; businesses should not assume that the proposed ballot has already replaced the existing UK arrangements.

The Minister explained the Government’s focus on backpacker numbers in these terms:
Last year the contribution of backpackers to net overseas migration was 48,000… 48,000. So, every part of the program is relevant. There’s almost an approach, sort of the NOM version of NIMBYism. I won’t try to invent the NIMBYism word, but it’s a concept where people will say that they want immigration numbers to go down but they don’t want to mention which visa class, and they immediately want to rule out all the ones that they would rely on. Home Affairs Ministers

Our advice to businesses relying on backpackers is to review workforce continuity now, rather than assume that an employee will remain available for a second or third year.

Student visa changes from 2 October 2026
The Migration Amendment (Student Visa Reform) Regulations 2026 and two accompanying instruments introduced significant restrictions affecting subclass 500 applications made on or after 2 October 2026.

Family members. The circumstances in which partners and children can apply as secondary Student visa applicants are substantially restricted. Exceptions and transitional protections remain, including for specified government-sponsored students, doctoral students, certain Pacific and ASEAN nationals, and eligible existing family members. These are not blanket rules requiring families already lawfully in Australia to leave immediately.

Applications in Australia. More temporary visa holders must apply for a Student visa offshore. The affected categories include Working Holiday and Work and Holiday visas, subclass 482 visas, Training visas, Temporary Activity visas and Temporary Graduate visas. Existing Student visa holders also face restrictions on further onshore applications, subject to exceptions such as qualifying course progression, doctoral study and specified course-completion circumstances.

Location at grant. Certain applicants who must be outside Australia when applying must also be outside Australia when the Student visa is granted. Leaving to lodge an application and then returning as a visitor will therefore not necessarily allow the application to be finalised while the person is in Australia.

The Government has also announced that, from 2 October 2026, the initial restriction on transfers between education providers increases from six to 12 months for non-school students, subject to exceptions. A new Student visa transfer stream is planned for 1 July 2027 and should be distinguished from the changes commencing now.

Departmental staffing and processing: additional risks
These reforms coincide with significant staffing changes at Home Affairs. More than 600 staff have been affected by its voluntary redundancy program, with recent reporting identifying 679 approved departures. That figure relates to departmental staff generally, not necessarily 679 visa decision-makers.

We also understand that some visa processing is being transferred to Australian overseas posts, including embassies, where officers may have limited experience with the particular visa categories being allocated to them.

In our assessment, staff reductions and the redistribution of work create a risk of higher refusal rates, inconsistent assessments and more requests for documents that are not required in the particular case. This is a concern about processing quality, not an announcement that the legal requirements for those visas have changed.

Our team is working to ensure our applications clearly explain how the relevant criteria are met. Requests for further information must also be reviewed carefully—even where they appear unnecessary—and addressed within the required timeframe.

Our assessment: controlling migration through more than visa numbers
The Government’s stated objective is to deliver net overseas migration of 245,000 in 2026–27 and 225,000 in 2027–28. The measures target not only who enters Australia, but also how long temporary migrants remain and their ability to move between visa categories.

It is important to distinguish net overseas migration from the number of visas granted. Net overseas migration measures longer-term arrivals and departures, generally using presence or absence for at least 12 months within a 16-month period. A short departure to lodge a visa application does not necessarily reduce that figure, and granting permanent residence to someone already counted in Australia’s population does not automatically create an additional migrant arrival.

Our view is that these reforms represent a shift towards more selective government control over entry and continued stay. The expanded skilled priorities recognise that reducing migration indiscriminately could impede the very workers needed for housing, infrastructure and essential services. Nevertheless, employers outside the preferred categories will face greater uncertainty, even where their need for skilled workers is genuine.

With the next federal election expected by 2028, we expect migration and housing to remain politically sensitive.

For employers, the practical message is to plan earlier and reassess assumptions. A viable visa pathway does not, by itself, establish when an employee can arrive or start work. Recruitment and retention plans should take account of occupation, visa stream, applicant location, family composition, existing visa conditions and realistic processing expectations.

Upcoming webinar
Our team will hold a webinar on Tuesday 13 October aimed at the Hospitality industry. With significant changes affecting the temporary visa programs, we will unpack the implications this has on workforce planning, recruitment strategies and labour shortages as we head into the busy season for the hospitality, food and accommodation sector. An invitation to the webinar will follow shortly.