Recent Changes to the Subclass 485 Temporary Graduate Visa

In Short

The Australian Study Requirement for the Post-Higher Education Work stream of the Subclass 485 visa has been removed, simplifying the application criteria.
Graduate Certificates no longer qualify as valid study for the PHEW stream, while Graduate Diplomas must relate to prior qualifications.
New regulations increase clarity and require longer courses aligning with Australia's skills needs.

Tips for Businesses

Ensure your international graduate employees understand the updated visa criteria, particularly the shift to longer, specialised courses. Encourage them to plan their academic and career paths accordingly to meet these new requirements. Consider offering support or guidance for those affected by the removal of Graduate Certificate eligibility, fostering a supportive workplace environment.

The Subclass 485 Temporary Graduate visa has long been a popular pathway for international students to gain valuable work experience in Australia after completing their studies. Significant changes were recently introduced to the Post-Higher Education Work (PHEW) stream of this visa, effective 14 December 2024. These changes aim to refine the program and align it more closely with Australia's broader migration strategy. This article explores these updates and their implications for potential applicants.

Overview of the Subclass 485 Visa

The subclass 485 visa allows eligible international graduates to live, work and study in Australia temporarily after completing their studies. It consists of two streams, the:

Graduate Work stream; and
Post-Higher Education Work (PHEW) stream.

The PHEW stream is for students who have completed higher education degrees in Australia.

Key Changes to the PHEW Stream

1. Removal of the Australian Study Requirement (ASR)

One of the most significant changes is the removal of the Australian Study Requirement (ASR) for the PHEW stream. Previously, applicants had to meet the ASR, which involved completing a CRICOS-registered course for at least two academic years in Australia. The Department of Home Affairs has introduced a specific set of requirements for qualifying degrees and study requirements within the PHEW stream itself.

This change simplifies the process by consolidating the qualifying study criteria within the Temporary Graduate visa regulations rather than relying on separate requirements. It provides greater clarity for applicants and aligns more closely with the intent of Australia's Migration Strategy.

2. Changes to Qualifying Degrees

In a significant shift, Graduate Certificates are no longer considered to qualify for study for the PHEW stream of the Temporary Graduate visa. This change reflects the government's view that these courses are generally short and have a low study load, which does not align with the intent of the Migration Strategy. The implications of this are:

students who complete a Graduate Certificate must apply for the visa within six months of finishing an eligible qualification to meet the TGV qualifying study requirements; and
while students can still undertake Graduate Certificates while holding a Temporary Graduate visa, they will not count towards eligibility for a new application.

However, Graduate Diplomas continue to be accepted as eligible qualifications for the PHEW stream, but with new conditions. This includes that the Graduate Diploma must be:

preceded by an Australian-awarded Bachelor's, Master's or PhD degree and be related to that qualification; and
commenced within the same or the next academic year as the preceding study.

This change ensures that Graduate Diplomas build upon an individual's specialised skills. Students wishing to study a Graduate Diploma unrelated to their previous degree can still do so, but it will not count as qualifying study for TGV eligibility.

3. Specific Study Requirements

The new regulations introduce more detailed study requirements for the PHEW stream, being that:

applicants must have completed one or more degrees from Australian educational institutions;
applicants must register and complete the course(s) in a total of at least 16 calendar months;
the study must result in at least two academic years of study;
all instruction must have been conducted in English; and
the study must have been undertaken while the applicant was in Australia on a visa that allowed them to study.

Impact on Applicants

Beneficial impacts include:

Greater Clarity: The changes provide more precise guidelines on what qualifies as an eligible study, reducing confusion for potential applicants.
Alignment with Skills Needs: By focusing on longer, more substantial courses, the changes aim to ensure that graduates have skills more closely aligned with Australia's workforce needs.
Continuity of Specialisation: The requirement for Graduate Diplomas to be related to previous study encourages students to deepen their expertise in a particular field.

However, the updated PHEW stream also introduces potential challenges, including:

Reduced Options for Some Students: Those who were planning to use Graduate Certificates as a pathway to the Temporary Graduate visa will need to reconsider their options.
Stricter Requirements for Graduate Diplomas: The new conditions for Graduate Diplomas may limit flexibility for students who wish to change their field of study.
Longer Study Commitment: The emphasis on longer courses and related fields of study may require some students to commit to more extended study periods in Australia.

Transitional Arrangements

It is important to note that these changes came into effect on 14 December 2024, with no transitional arrangements in the new regulations. However, the Department of Home Affairs has stated that:

Applicants who lodged their visa application before 14 December 2024 using a Graduate Diploma as their qualifying study will still be eligible for a visa grant, provided they meet all other requirements.
The Department will contact Graduate Certificate applicants who may be negatively impacted by the inconsistency between the old Australian study requirement and the new instrument to discuss their options.

Key Takeaways

The recent changes to the Subclass 485 TGV's PHEW stream shift Australia's approach to post-study work opportunities for international students. By refining the qualifying criteria, the Australian government aims to attract and retain graduates with skills matching workforce needs. For prospective international students and current graduates, these changes underscore the importance of careful planning. It is crucial to consider how your chosen course of study aligns with the new visa requirements and your long-term career goals in Australia.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.