Hong Hai, from Hai Phong, arrived in Australia last year on a 462 visa, which allows holders to work and travel. After doing some research, he learned that Tasmania offered relatively favorable policies for international students and faced worker shortages. He planned to pursue vocational training, find a job and eventually seek permanent residency.
While Hai was researching how to apply for a student visa (subclass 500), the Australian government announced a series of tighter policies affecting foreigners.
As announced by the Australian government, starting Oct. 2, international students will only be allowed to progress to higher levels of study, rather than repeatedly enrolling in courses at the same or a lower level, under Australia’s student visa (subclass 500) rules.
Most foreigners and international students in Australia can no longer apply for a student visa from within the country. According to Australia’s Department of Home Affairs, students seeking this type of visa must now apply and wait for a decision from outside Australia.
The department late last month also announced that Australia will stop foreign students from bringing partners and children to accompany them while they study, with certain exemptions for students from ASEAN and Pacific nations, and those taking PhD courses.
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People take photos of the Sydney Opera House and Central Business District (CBD) skyline in Sydney, Australia, July 9, 2025. Photo by Reuters |
After seeing the high student visa refusal rate, Hai became uncertain about whether he should apply for another Australian visa.
If rejected, he would not only lose his application fee but also have the refusal recorded in his immigration history, potentially creating obstacles when applying for visas in some other countries.
Australian Department of Home Affairs data show that the student visa refusal rate reached 24.2% in June 2026, meaning roughly one in four applications was refused. ABC reported that this was the highest refusal rate in a decade, up from 7.9% in June 2016.
“I feel that policies are becoming increasingly difficult for immigrants, especially international students,” Hai said.
Over the past three years, the Australian government has taken various measures to control net migration as inflation has pushed up housing and other living costs. International students, who account for about one-third of temporary visa holders, have become a key target of these efforts.
Since 2024, Australia has raised student visa fees three times, shortened the post-study work period for international graduates and increased financial proof requirements, among other measures. Shortly before announcing the latest regulations, the government last month barred a postgraduate course that was reportedly being used by some international students as a pathway to permanent residency.
Genuine students face fewer roadblocks
Experts say the new policies will have a greater impact on people who study primarily to extend their legal stay and pursue migration pathways than on those with genuine study goals and clear plans.
“A strategy that is primarily based on securing a visa first and then finding a way to stay and migrate will become more uncertain,” said Professor Ly Tran Thi of Deakin University.
She said Vietnamese students, as nationals of an ASEAN country, as well as PhD students, will still be allowed to bring family members to Australia under the new rules. This provides a degree of stability for them and their families.
Nguyen Duc Quyet, CEO and co-founder of education and migration consultancy Rightway, added that applicants for Master by Research programs may also be allowed to bring family members, as these programs could fall under the category of “postgraduate research programs.” However, he said this needs to be confirmed by official regulations.
Based on individual states’ workforce attraction strategies and the government’s latest direction, migration opportunities are increasingly concentrated in five groups of occupations, according to Nguyen Duy Tung, an Australian migration representative at Rightway Education & Services, a consultancy specializing in Australian study, migration and skills assessment, with offices in Melbourne, Adelaide and Ho Chi Minh City.
They include construction and infrastructure; healthcare and health services; education and teaching; agriculture, fisheries and resources; and security, defense and policing, he said.
Skilled visas such as subclasses 491, 190 and 494, which are commonly pursued after subclass 500 or 485 visas, remain a priority in regional areas. These areas are outside major cities such as Sydney, Melbourne and Brisbane. Students can receive an additional one to two years on their 485 visas in regional areas, giving them more time to gain work experience and accumulate points for migration.
However, Professor Ly cautioned international students against assuming that studying a particular field will guarantee a pathway to permanent residency, as labor market demand changes over time and migration policies change accordingly.
“First and foremost, you should think about what you want to study, what capabilities you can develop and how the labor market will receive them, rather than choosing a field simply because you believe it will provide an opportunity for permanent residency,” she said.
To adapt to the current environment, experts recommend that Vietnamese students carefully consider their education choices, including their field of study, level of education, educational institution and the value of the program to their long-term career plans.
Students should pay particular attention to their finances. Professor Ly said they should not assume that part-time work will be enough to cover tuition and living expenses in Australia. Quyet said he had seen many cases where students were forced to abandon their studies because of financial difficulties.
He explained that in the past, undergraduate students whose families experienced financial problems still had alternatives, such as switching to vocational education at a different level or choosing a vocational program linked to a bachelor’s degree at a lower cost. Under the new policies, however, these options would no longer be possible.
Shifting focus to employability
Despite the tightened policies, experts say Australia’s door to international students remains open. Quyet said data showed the number of international students enrolling in 2026 was actually below the government’s annual cap of 295,000.
“The door is still open, and it is even wider for those who are genuinely going through it. Those with genuine study goals have nothing to worry about,” he said.
Professor Ly said students should not base their decisions entirely on current visa and migration policies, but should prepare backup plans for potential changes. They should also view studying abroad primarily as an investment in knowledge and skills.
She predicted that Australia’s policy toward international students would shift from an “education-migration” link toward an “education-employment-migration” pathway, with employment playing an increasingly important intermediary role.
As of the end of June, 687,810 international students were studying in Australia, down 7% from the same period last year, according to the Department of Education.
Fifty-seven percent of international students came from top five countries: China (23%), India (16%), Nepal (9%), Vietnam (5%) and Bangladesh (4%).
“Students should consider their employability from the beginning of their studies, build English communication skills, gain internship and work experience, understand the labor market and develop professional networks,” Professor Ly said.