On 17 September 2026, Australian Home Affairs Minister Tony Burke announced immigration reforms targeting a reduction of net overseas migration to 225,000 by 2028. The package mainly impacts student visa subclass 500 and temporary graduate visa subclass 485 holders by restricting the ability to bring dependents, with select exemptions.
Restrictions on Student Dependents Impact Nepali Students
New rules will generally prevent international students on subclass 500 and 485 visas from bringing spouses or children to Australia. Exemptions apply only to PhD and research students, and to some Pacific and ASEAN nationals. Nepal, the third largest source of international students in Australia with about 60,000 enrolled, is not
exempted. This change critically affects Nepali students and their families planning for dependent accompaniment.
Between July 2025 and June 2026, Australia issued approximately 337,400 student visas, including about 46,000 for dependents. The reforms apply only to new applications, leaving current visa holders unaffected.
Migration Data and Declining Visa Approvals
The Australian Bureau of Statistics indicated net overseas migration reached 292,100 for the year ending March 2026, down 47% from the 2022 peak of 538,000. The government aims to reduce this figure further to 225,000 by 2028 using regulatory rather than legislative measures.
Visas granted to Nepali applicants have fallen sharply. From January to May 2026, only
2,700 of 7,500 offshore applications were approved compared with 7,167 of 8,028 in the same period of 2025. Vocational education applications from Nepal face nearly 90% rejection rates, intensifying the impact of new course progression restrictions targeting course switching at similar qualification levels.
Additional Visa System Changes and Enforcement Measures
Course switching rules have tightened to restrict moves between courses at the same level intended solely to extend stays. Progression to higher-level qualifications remains permitted.
Visitor visas will now carry a ‘No Further Stay’ condition, closing off onshore switching options for most applicants. Working holiday visa holders face a ballot system for second and third-year regional visas,
with only 5,000 places available for the third year.
To strengthen enforcement, the government will hire 100 additional compliance officers and add 250 detention beds. Visa overstayers will be given two weeks to leave voluntarily before removal procedures begin, emphasizing compliance over forced removals.
Political Context and Official Statements
Minister Tony Burke framed migration as a national strength while acknowledging it contributes to housing pressures. He emphasized the government pursued regulatory tools after failing to gain Coalition support for a legislated migration cap.
Burke rejected the idea of a mass migration crisis and criticized One Nation party migration cut proposals as economically damaging. He stated
the reforms aim to manage migration precisely across visa types rather than imposing blunt caps.
Shadow Immigration Minister Jonno Duniam criticized the package as superficial and requested economic impact analysis. Industry groups have warned the new working holiday visa restrictions could exacerbate labor shortages in agriculture.
Burke said: “Once they get here, and if they apply onshore, the process has been that they stay, and they’re [put] on a bridging visa,” highlighting the unfairness the new restrictions seek to address.
Universities Australia Chief Executive Officer Luke Sheehy commented on the policy’s challenges: “If 295,000 is the right level for Australia,
the settings need to give universities a realistic chance of getting there.”
