On 17 September 2026, Australia’s Minister for Home Affairs and Immigration, the Hon Tony Burke, addressed the National Press Club to announce the federal government’s long-awaited reforms to Australia’s migration system. The Australian Government wants to reduce net overseas migration (the net number of people added to Australia’s population once arrivals and departures are counted) from around 292,100 to a target of 225,000 people a year by 2028. Several of the changes will directly affect employers who sponsor workers from overseas, or who support staff and their families on temporary visas in Australia. This Alert summarises the key announcements and what they mean for your business.
The numbers behind the policy
Net overseas migration is already falling
Net overseas migration is the term the Government uses for the net change in Australia’s population from people moving in and out of the country for 12 months or more within a 16-month period. According to the Australian Bureau of Statistics, net overseas migration fell to 292,100 people in the 12 months to March 2026, down from 309,500 people in the previous 12 months, and well down from a record 538,000 people in the 2022–23 financial year. Australia’s total population is now around 27.9 million people. The Government’s target is to bring net overseas migration down further, to 225,000 people a year by 2028.
Faster processing for skilled visas in priority industries
Updated processing Direction expected
Ministerial Direction 119, issued on 25 July 2026, changed the processing order for certain employer-sponsored and skilled visa nominations and applications. It prioritises occupations addressing critical workforce shortages, particularly in law enforcement, defence, healthcare, education and construction, as well as onshore applicants. Offshore skilled visa applications were moved to the back of the queue, extending some processing times beyond a year. Priority industries will now expand to include resources, agriculture and fisheries, and we expect priority processing to cover all offshore applicants working in these new, as well as other existing priority sectors. The updated Ministerial Direction has not yet been released.
International students and family members
Family visas restricted for new student and graduate visa holders
Under the changes, Student (500) and Temporary Graduate (485) visa holders will generally no longer be able to bring partners or children to Australia on their visa. This will only apply to new visas being lodged; family members already in Australia on an existing 500 or 485 visa will not be affected. Exceptions will apply to students from Pacific and ASEAN countries and to postgraduate research students, including PhD candidates.
A crackdown on moving between courses
The Government also plans to stop students using a visa to move sideways or downward between courses, for example, transferring to a lower-level qualification or a lower-quality education provider, purely to extend their stay in Australia. Under the new requirements, students will generally need to move up to a higher-level qualification, for example from a bachelor’s degree to a master’s degree, to remain eligible for a further student visa.
Working holiday maker visas
Caps on second and third-year visas
Working holiday makers who complete specified regional work can currently apply for a second-year visa after 88 days of eligible work, or a third-year visa after six months of eligible work. From today, second-year visas will be capped at 45,000 a year, down from 57,000 people who qualified last financial year, with eligible applicants entering a ballot for an invitation to apply. Third-year visas will also move to a ballot and be capped at 5,000 a year, down from 31,000 people who qualified this year. Working holiday makers from the United Kingdom are treated differently under Australia’s free trade agreement with the United Kingdom and will not be subject to the ballot system. The Government has also committed to maintaining a three-month processing time for Working Holiday Maker visas.
Visitor visas: Mandatory ‘no further stay’ condition
Mandatory condition on future visitor visas
The Government will attach a ‘no further stay’ condition to all Visitor (600) visas issued from today’s date. This means people arriving on a new Visitor (600) visa will generally not be able to apply to extend their stay, or change to another visa, while they are in Australia. The condition will only apply to Visitor (600) visas issued from today onwards; it will not affect anyone currently in Australia on a Visitor visa. It is unknown as to whether this will also extend to the Electronic Travel Authority (ETA) and eVisitor visa programs at some point in the future.
Compliance and visa overstayers
Stronger enforcement
The Government estimates around 77,000 people are currently in Australia having overstayed their visa. It plans to fund about 100 additional compliance officers and 250 additional immigration detention beds. This marks a return to a stricter, pre-2015 approach to enforcement.
| Key numbers behind today’s announcement | ||
| Category | Current position | Government’s announcement |
| Net overseas migration figures | 292,100 people in the 12 months to March 2026 | Target of 225,000 people a year by 2028 |
| Second-year working holiday visa | 57,000 people qualified this year | Capped at 45,000 people a year (to be eligible for ballot) |
| Third-year working holiday visa | 31,000 people qualified this year | Capped at 5,000 people a year (to be eligible for ballot) |
| Visa overstayers | Around 77,000 people currently in Australia | 100 extra compliance officers and 250 extra detention beds |
The Government has not confirmed whether the measures will speed up employer-sponsored visa applications for occupations outside the priority sectors of law enforcement, defence, healthcare, education, construction, resources, agriculture and fisheries. Employers in other industries should continue planning around current processing times until further guidance is available.
Graduate-to-sponsored visa pathways remain available, but new restrictions may prevent students and graduates from bringing family members. Businesses should also prepare for restrictions on extending Visitor visas or applying for another visa in Australia, fewer returning working holiday makers, and increased compliance activity by maintaining robust visa and work-rights checks.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Cherie Wright
Partner & Principal Solicitor
Stacey Tsui
Partner & Principal Solicitor
Arathi Tekkam
Director
Ben Reid
Director
John O’Brien
Director
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