What's new in Australian Visa 2026? Opportunities & Challenges

From 2026, Australia's new Visa Law will create a major turning point for international students. The Australian Government tightens the visa application process but at the same time expands settlement opportunities for those who study and work for real. Vietnamese students will benefit from regional priority and longer stays, but also face competition and stricter application requirements.

I. New Australian Visa Law 2026 - A turning point for international students

The Australian Visa Law 2026 is a comprehensive reform, aiming at real studying, real working, real settling. If properly prepared, Vietnamese students can turn the new policy into a long-term advantage on their journey to conquer Australia.

1. Strategic shift in Australia's immigration system

The new Visa Law 2026 reflects the Australian government's new direction: shifting from quantity to quality of international students. After a period of booming international student registration, Australia wants to attract students with real ability and clear career plans.

According to the National Planning Level (NPL), the quota for international students is limited to 295,000 each year, of which 17,500 are reserved for public schools and regional areas where there is a shortage of skilled human resources. This is a positive signal for Vietnamese students aiming to study and settle long-term.

2. Ministerial Direction 111 - Priority Review Mechanism

Ministerial Direction 111 (MD111) allows the Home Office to classify applications according to risk: clear applications, strong finances and reputable schools are processed first; ambiguous applications or applications from high-risk schools will be checked carefully. Therefore, students need to prepare honest applications, have clear study goals and specific career plans.

3. Tighten but open up new opportunities

Although it seems stricter, the new law opens up more opportunities for genuine students. Qualified applications are processed quickly, and can transition more easily to a 407 or 485 Visa after graduation. At the same time, the government controls sponsors of 407 Visas more strictly to protect international workers. But if legally sponsored, students can stay in Australia legally for an additional 1-2 years.

4. Impact on Vietnamese international students

For Vietnamese students, the new law requires more careful preparation of documents, but also opens up a safe and sustainable path. Studying at public or regional schools increases the possibility of getting a visa and the opportunity to settle. Studying in STEM-related fields, medicine, education, engineering, and agriculture continues to be prioritized by Australia – especially when the country is short of high-quality human resources.

II. Current student and work visa system standard 2025-2026

The Australian visa system 2025–2026 aims for “quality over quantity”. Those with real skills, real education and real work will have a clearer and more stable settlement path than ever before.

1. Student Visa (Subclass 500)

• More realistic and stringent financial requirements

The Australian government requires students to demonstrate sufficient financial capacity to pay for tuition, living expenses and accommodation for at least the first 12 months. This ensures that international students have a serious study plan and do not rely too much on part-time work. Preparing this section carefully will help your application become more reliable and be processed faster.

• Raising English standards and GTE criteria

From 2026, the minimum IELTS score will be raised to 5.5-6.0, depending on the level of study. In addition, the Genuine Student Test (GTE) section becomes more important than ever. This is the section that shows real motivation to study, career plans and reasons for choosing the major and school. A clear and authentic GTE significantly increases the visa approval rate.

• Limit overtime to focus on studying

International students are only allowed to work 48 hours every two weeks during term time. The aim of this regulation is to ensure that international students maintain a balance between study and work, and to prevent students from taking advantage of their student visa to work full-time.

• Extended benefits for students and their families

Student Visa 500 allows you to bring your dependents along on a dependent visa. They are allowed to work part-time while their visa is valid. Additionally, international students studying at public or regional schools will have their applications processed faster, helping to reduce waiting times.

• Clear transition path to Visa 485 or 407

After graduation, students can transfer to Post-Study Work Visa (485) to stay and work, or Training Visa (407) to hone their professional skills. This is the first step in the journey to permanent residence (PR).

2. Post-Study Work Visa (Subclass 485)

• Opportunity to work legally for 2-4 years in Australia

The 485 visa allows international students to stay and work legally for 2 to 4 years after graduation, depending on the degree and area of ​​study. This is an important period for students to gain experience, improve their skills and prepare for a settlement path.

• Priority is given to studies in the high-skill category

The Australian Government gives priority to students studying STEM, health, education, engineering and information technology. These fields can be extended visas for up to 4 years, reflecting the high demand for human resources in the Australian economy.

• Changes in English language requirements and areas of study

Applicants need to achieve IELTS 6.0 (no skill below 5.0) to meet the new standard. Students studying in regional areas can be granted an additional 1-2 years of work, which will help them gain experience and increase their PR Points.

• Visa 485 - A stepping stone for skilled immigration

Work experience while holding a 485 Visa is a key factor in helping students qualify for Skilled Migration (visa types 189, 190, 491). Thanks to that, international students can switch from a temporary visa to a permanent residence (PR) more easily.

• The practical implications of Visa 485

Not only is it an opportunity to earn income, the 485 Visa is also a measure of the value of Australian degrees. Students with practical work experience, good English and solid vocational skills will be retained by businesses for a long time. This is how the Australian government attracts truly capable human resources after graduation.

3. Training Visa (Visa 407): Bridge skills between study and settlement

• Purpose of Visa 407 - Vocational training and skills development

The 407 visa is designed for people who want to develop their vocational skills in a real-life environment in Australia. Visa holders can stay for up to 2 years to participate in training or vocational practice programs with sponsorship from businesses or organizations approved by the Department of Home Affairs.

• Requirements for applying for Visa 407

Applicants must have an approved sponsor, along with relevant qualifications or professional experience. In addition, English is required at a minimum IELTS level of 4.5. Strong profiles are usually those who have studied or worked in an industry that requires specialized training.

• Stricter sponsor control policy from 2026

The Australian government will strengthen sponsorship checks to prevent businesses from exploiting this visa for the purpose of hiring cheap labor. However, high-skilled industries such as engineering, health, early childhood education, AI and agriculture will still be given priority for visas if the training program is clear and transparent.

• Strategic Benefits - A Bridge Between Study and Settlement

The 407 visa helps students develop practical skills, expand their professional network and increase their employment opportunities in Australia. This is an ideal stepping stone before transitioning to a 485 visa or applying for skilled migration. For students who want to build a long-term career in Australia, the 407 visa is an option worth considering.

III. Official changes in Australian Visa Law 2026

• National Planning Level (NPL) - 295,000 student quotas

From 2026, Australia will apply the National Planning Level (NPL) mechanism, setting a quota of 295,000 international students each year. This is the first time the government has limited the number of visas to control the growth of the temporary resident population and improve the quality of education.

NPL helps to allocate quotas fairly across states, schools, and fields of study. Schools with high reputations and high graduation rates will receive more quotas. This policy forces training institutions to improve program standards and output transparency.

• Priority for public and remote areas (17,500 new positions)

The Australian government has added 17,500 new visa places for public and regional schools to ease pressure in Sydney, Melbourne, and Brisbane. Students studying in regional areas will be given priority for fast-track processing, increased permanent residency (PR) points, and the ability to extend their 485 visa by 1-2 years.

This policy helps Australia supplement human resources for the shortage area, at the same time brings clear advantages to international students. In particular, Vietnamese students who choose to study in the regional area will save costs, find jobs easily and have higher opportunities to settle down.

• Ministerial Direction 111 - Priority 1 & 2 Case Processing System

Ministerial Direction 111 (MD111) divides student visa applications into Priority 1 and Priority 2, based on the risk level of the institution and the country of application.

• Priority 1:Profile from prestigious school, student has clear finances.
• Priority 2:Records from high risk facilities or areas require further scrutiny.

This classification helps speed up the processing of quality records, reducing backlogs and fraud risks.For Vietnamese students, preparing honest documents, proving financial resources and GTE are clearly decisive factors to be placed in the priority group.

• Tighter management of 407 Visa sponsors to avoid labor abuse

The 407 (Training Visa) has been tightened due to its history of abuse for cheap labor. From 2026, sponsoring businesses must be carefully approved by the Home Office, providing evidence of training capacity, career path and legal salary.

Sponsors who violate the law may have their licenses revoked or be banned from operating, but eligible students will be better protected. This policy creates a transparent environment, helping 407 Visa holders to receive real training, real work and easily transition to permanent residence (PR).

IV. Comprehensive impact of the new law on Vietnamese international students

1. Increased opportunities

• Improve the quality of training records and facilities: The new law prioritizes prestigious schools with transparent records, creating opportunities for Vietnamese students with real abilities and clear study plans to have their visas approved more easily. Standardizing the quality of training helps Vietnamese students study in a trustworthy environment, with degrees more internationally recognized.

• Expanding the study - work - settlement roadmap: With the regional priority policy and Visa 407, students can stay in Australia longer to hone their skills and work legally, thereby increasing their chances of getting PR. The path of “study in a regional area - internship Visa 407 - work 485 - settle in PR” becomes a more realistic and safer path than before.

• The Australian Government encourages skilled workers: The fields of engineering, education, medicine, and technology are given priority for visa consideration, creating great opportunities for Vietnamese students to pursue strategic and high-demand professions. This not only helps international students find jobs easily but also expands their chances of permanent settlement.
• The Government prioritizes skilled and contributing human resources: Engineering, technology, medicine, and education are given priority for visa and settlement. This is a great opportunity for Vietnamese students studying in Australia’s Skills Priority List, aiming for PR faster.

2. New challenges

• Higher competition due to limited quota (NPL): The cap of 295,000 visas makes applying for a Student Visa more stringent. Students need to prepare their application early, correctly and clearly demonstrate their realistic study goals to increase their chances of being approved.
• Strictly manage sponsor Visa 407: Tightening sponsorship standards makes the process of finding suitable sponsors longer, but ensures that students participate in real training programs and are not exploited.
• Higher transparency standards with Vietnam records: Applications with signs of fake financials, copied SOPs or unconvincing study objectives will be rejected from the start. Students need to demonstrate genuine learning motivation and logical career plans.
• Increased costs and requirements for visa management after admission: Students may be required to demonstrate continued study, maintain good grades and regularly update visa compliance. This requires a greater sense of self-management and discipline while studying in Australia.

3. Impact on settlement (PR)

• Expand PR opportunities in regional areas: Students who study and work in regional areas gain PR points, enjoy visa priority, and can extend their stay to work after graduation. This is the optimal direction for those who want to settle down permanently.
• Visa 407 becomes a practical bridge to skilled settlement: Thanks to a more transparent management policy, the 407 Visa helps students accumulate officially recognized practical experience, easily transitioning to skilled settlement visas (Skilled PR).
• The government aims for high-quality human resources: The new law prioritizes retaining genuine students who have the skills and ability to contribute. Vietnamese students who seriously invest in their studies and career development will have a clear competitive advantage in their PR applications.
• Settlement opportunities associated with essential occupations: Fields such as information technology, engineering, education, nursing, agriculture, etc. are prioritized in the long-term settlement list (MLTSSL). Vietnamese students studying in these groups have a higher and faster PR approval rate.

V. Summary of the impact of each type of Visa

Conclusion

The Australian Visa Law 2026 is not just a change in procedures but a golden opportunity for Vietnamese students to orient themselves in the right industry and region to maximize PR opportunities.Preparing an honest application, choosing a reputable school and sponsor will help you take advantage of the new policy and build a solid future in Australia.