Australia's 2026 Migration Overhaul: Explained for Nepali Students and Skilled Migrants

Australia doesn't make multiple changes to its migration policies at once. On 17 September 2026, it did. Home Affairs Minister Tony Burke was at the National Press Club (NPC) and, in a single speech, addressed international student family visas, the points test, the number of backpackers, the focus of visa processing, the conduct of visa agents and the treatment of visa overstayers.

It's a lot to take in all at once, especially for anyone considering staying in Australia to continue education, joining as a skilled worker, or joining as a family member. The announcement and the coverage of the news the same day have been looked over and then compiled in a straight forward guide. 

Key Takeaways

• The announcement and the coverage of the news the same day have been looked over and then compiled in a straight forward guide. 

• The primary reason given for the target was pressure on the supply of housing, together with a wider push for control of the migration program.

• The vast majority of international students will no longer be able to apply for new visas with a family member, aside from the Pacific, ASEAN (with exceptions), and PhD candidate visa exemptions.

• Changing courses while enrolled will normally require a new visa application, and movement will only be permitted upward by qualification level.

• Following a previous slowdown, processing priority has been restored for construction, healthcare, agriculture, fisheries, and teaching occupations.

• A redesign of the points test has been flagged that would recognise trade qualifications in the same way as a university qualification.

• New penalties have been introduced for migration agents who counsel on weak visa applications, and the Working Holiday Maker program has moved to a balloting system.

Why Is the Government Making Changes?

According to new figures from the Australian Bureau of Statistics (ABS) released the same day, Net Overseas Migration (NOM), the official measure of how many more people arrive in Australia than leave, fell to 292,100 in the year to March 2026. The government's budget already forecasts this falling further, to 245,000 this financial year and 225,000 the year after, and Mr Burke confirmed the government now treats these figures as a target it intends to meet, not just a projection.

The reasoning given centres heavily on housing. Mr Burke argued that migration needs to slow enough for housing supply to catch up, while stopping short of blaming migration for causing the housing shortage outright. He also pushed back on suggestions that Australia has become a country of mass migration, pointing out the country is on track to have around 700,000 fewer people by 2030-31 than had been forecast before the pandemic.

Family Visas for International Students Restricted

The change likely to affect the largest number of prospective Nepali students is the one: most international students will no longer be able to bring a partner or dependent children on their visa.

Exemptions named so far cover Pacific and Association of Southeast Asian Nations (ASEAN) nationals, Doctor of Philosophy (PhD) candidates, and some government-sponsored students. Nepal has not been named in any exemption, and separate reporting on the same announcement has specifically flagged Nepal, alongside India and China, as falling under the tighter rules. The change is not retrospective, so families already in Australia together will not be separated.

A full breakdown of who is affected, who is exempt, and what to do if the family visas for the international students change existing plans has been published separately.

Sources: ABC News - "Labor tightens visa rules as Tony Burke vows migration targets will be met", published 17 September 2026

Crackdown on "Visa Hopping" for Students

Students who want to switch courses or institutions will now generally need to apply for a new visa rather than simply transferring, and movement between qualification levels is upward-only. A bachelor's graduate can move up to a master's course; moving back down to a lower qualification level generally cannot.

Visitor visas are also being tightened with a "no further stay" condition in most cases, closing a related pathway where visitors would apply onshore for a different visa and end up on a bridging visa.

A dedicated article on “Visa Hopping” topic covers exactly what counts as a permitted course change and what to do when considering one.

Read next: No More "Visa Hopping" 

Skilled Visa Processing Priorities Updated

In July 2026, a directive known as Ministerial Direction 119 pushed all offshore skilled visa applications to the back of the processing queue, and wait times blew out from a matter of days to more than a year in some cases. Following backlash from affected businesses, Mr Burke announced that processing priority has now been restored for construction, healthcare, agriculture, fisheries, and teaching occupations.

This is genuinely good news for applicants whose occupation falls into one of these categories, including most nursing roles assessed through the Australian Nursing and Midwifery Accreditation Council (ANMAC). A dedicated article explains exactly what changed and how to check where an application stands.

Points Test Redesign for Trade Qualifications

Mr Burke also flagged a redesign of the skilled migration points test intended to increase its economic value, specifically naming housing construction trades as an occupation group that should receive the same recognition as a university qualification.

This detail matters a great deal to trade-qualified applicants, but it is important to be clear that no finalised points table has been published yet. A dedicated article covers what is confirmed, what is still just a proposal, and what to do while the detail is worked out.

Working Holiday Maker (Backpacker) Changes

The Working Holiday Maker program is getting a ballot system to control how many backpackers can extend their stay beyond the first year. A second-year stay will be capped at 45,000 places, requiring 88 days of regional work to enter the ballot. A third-year stay will be capped at just 5,000 places, requiring six months of regional work.

For context, around 57,000 backpackers stayed for a second year last year, and around 31,000 stayed for a third, so this represents a real tightening. United Kingdom (UK) backpackers are excluded from the faster processing lane because their scheme does not carry a regional work requirement under the Australia-UK Free Trade Agreement (FTA).

Crackdown on Visa Overstayers and Weak Claims

Mr Burke announced 100 additional compliance officers and 250 new detention beds to increase the government's capacity to detain and remove people who remain in the country after their visa has expired. The government is also examining whether a former quarantine facility in Melbourne could be repurposed for this.

Separately, the code governing migration agents is being changed so agents can be sanctioned or deregistered for encouraging clients to lodge non-meritorious claims. He also revealed that applicants from countries where more than 85 per cent of protection visa applications fail account for around 80 per cent of the entire protection visa processing caseload, which is part of the reason the government wants further reform in this area.

What Is Still Just a Proposal?

Two significant ideas were flagged as things Labor wants to legislate, but currently has no clear path through Parliament to achieve: an Expression of Interest (EOI) mechanism that would let the government actively control the number of student arrivals rather than simply processing whatever demand comes in, and further reform targeting weak or disingenuous protection visa claims.

Until legislation passes, these remain proposals rather than active rules, and separate reporting will follow if and when that changes.

Frequently Asked Questions

What Is Australia's Net Overseas Migration Target for 2026 to 2028?

The government's budget target is 245,000 for this financial year, falling to 225,000 the following year, and these figures are now being treated as firm targets rather than projections.

Why Is the Australian Government Making These Changes Now?

Housing supply pressure was named as the central reason, alongside a broader push for the government to have more control over the demand-driven parts of the migration system.

Do All of These Changes Require New Legislation?

No. Most of the changes described here, including the student family visa restriction, are being made through regulation and visa conditions rather than new law. Only the Expression of Interest mechanism for students and further protection visa reform currently require legislation that has not yet passed.

How Can Someone Know Which of These Changes Actually Apply?

It depends on the specific visa type, occupation, and nationality involved. The dedicated article most relevant to the situation is worth reading, or a registered migration agent can provide an assessment specific to the individual case.

Book free consultation with GlobalTouch Education Counsellor