Breaking news - Student visa changes, 2 October 2026.

Four legislative instruments were registered on 1 October 2026. All four commence on 2 October 2026. Together they change how students move between visas, between providers, and between family arrangements.

This newsletter sets out what each instrument does, how they fit together, and what migration agents and education providers should check before advising or enrolling anyone from today.

The short version

Holders of most temporary visas can no longer apply for a student visa from inside Australia.
Current Subclass 500 holders must lodge offshore unless they fit a listed exception. The exceptions cover the main pathways: finishing a course, moving to a higher AQF level, doctoral study, provider default, school students, Defence and Foreign Affairs students.
Families already attached to a student visa in Australia on 2 October 2026 are protected. New dependants can be added only in listed circumstances.
Provider transfers need 12 months of the principal course until 30 June 2027. Six months applies from 1 July 2027.
The visa changes apply to applications made on or after commencement.

The four instruments at a glance

1. The National Code: transfers between providers

The amendment repeals Standard 7.1 and replaces it. A receiving provider must not knowingly enrol a transferring overseas student unless one of three time tests is met.

School sector: the first six months of the student’s first registered school sector course with the releasing provider have passed.
All other sectors, on or before 30 June 2027: the student has completed at least 12 months of their principal course with the releasing provider.
All other sectors, on or after 1 July 2027: the student has completed at least six months of their principal course.

The previous test was six months. For the next nine months the window is longer, and then it returns to six.

The exceptions in Standard 7.1A

A receiving provider may enrol a transferring student, regardless of the time tests, if any one of these applies:

the releasing provider, or the course, has ceased to be registered
the ESOS agency has imposed a sanction that stops the student from continuing at the releasing provider
the releasing provider has agreed to the release, recorded the date of effect and reason in PRISMS, and followed its Standard 7.2 policy and process
a government sponsor considers the change to be in the student’s best interests and has given written support

Standard 7.2 now requires a documented policy and process for assessing transfer requests, tied to Standard 7.1A.3. The six-month wording and the word “implement” have been removed. Providers should read their existing release policy against that change.

2. The Regulations: where students can apply and who can come

The Regulations amend item 1222 of Schedule 1 and the Subclass 500 criteria. They apply to applications made on or after commencement.

Current Subclass 500 holders: offshore unless an exception applies

A new paragraph 1222(3)(aa) requires a person who is applying for the primary Subclass 500 criteria, and who already holds a Subclass 500, to be outside Australia when they apply. It does not mean every student must leave to lodge a new visa. There are exceptions in place:

Finishing the course already started: a student who has commenced the principal course and will complete it within 12 months of the CoE end date can lodge onshore.
Moving up: a student who has completed the principal course and moves to one further course at a higher AQF level can lodge onshore. For a higher education principal course, the further course must be higher education at a higher education provider.
Other listed groups: doctoral students, students affected by provider default (within 12 months of the default day), school students, Defence and Foreign Affairs students can lodge onshore.
From ELICOS, or another course with no AQF level: a student who has completed an ELICOS course can lodge onshore to move to a course that has an AQF level, such as VET or higher education. A person who completed school studies can move to a course with no AQF level, such as a foundation course.
Moving sideways or down: if a new course is at the same or a lower AQF the application goes offshore. ELICOS to another ELICOS course is an example. Or if a higher education bachelor degree followed by a graduate diploma at a VET provider. This is the visa hopping pattern that is not allowed anymore.
Secondary visa holders applying in their own right: must lodge offshore.

Other onshore applicants

Subitem 1222(4) is rewritten. An applicant in Australia must hold a substantive visa and must not belong to a class specified by instrument. That instrument is LIN 26/102 (section 3 below). The alternative is to meet subitem (4A) or (4B).

Subitem (4B) is new and narrow. It applies where all of the following are true:

the applicant holds no substantive visa
their last substantive visa was a student visa that was cancelled
the ART set aside the cancellation decision, or the Minister’s decision not to revoke it, after the visa had ceased to be in effect
the application is made within 28 days of the applicant being taken to have been notified of the ART decision
the applicant has not previously been granted a visa on an application made without a substantive visa

Dependants: existing families protected, new additions limited

A new paragraph 1222(3)(da) applies to a person applying for the secondary Subclass 500 criteria. The application can be made only if one of these applies:

the primary applicant is a Defence student, a Foreign Affairs student, or holds a passport from a Pacific-regional country or a country specified in subregulation (5A)
the secondary applicant is in Australia and held a Subclass 500 as a secondary visa holder when the Regulations commenced, and the primary applicant satisfied the primary criteria for it
the secondary applicant is in Australia and applied before commencement for a secondary Subclass 500 that was granted on or after commencement
the secondary applicant is a child born in Australia on or after commencement to a primary applicant who held, or had applied for, a Subclass 500 at that time
the secondary applicant falls within one of the four family classes in LIN 26/087: foreign government scholarship, doctoral, provider default, or completion of studies

What this means for onshore families:

Families already attached are protected. A partner or child in Australia who held a Subclass 500 on 2 October 2026, or whose application was already lodged, can still be included in later applications. This fits the Minister’s reported remarks that families already onshore will not be broken up.
New additions are limited. A partner or child who did not hold a Subclass 500 on 2 October 2026 can be added only through the first or last bullet above. As drafted, paragraph (da) does not distinguish by where the primary applicant is.
Course progression has no family class. The four family classes cover scholarship, doctoral, provider default and completion. A family that is not protected by the transitional paragraphs or the passport test has no class matching a progression student.

Clause 500.311 is also replaced. The applicant must now be a member of the family unit of a person who satisfies the primary criteria in Division 500.2.

Location at grant

Clause 500.411 is replaced. If the applicant lodged offshore because paragraph 1222(3)(aa) required it, or because they did not meet the subitem 1222(4) criteria, they must be outside Australia when the visa is granted. In any other case they may be in or outside Australia at grant, but not in immigration clearance.

3. LIN 26/102: who cannot apply onshore

This instrument specifies the class of persons excluded from onshore student visa lodgement under subparagraph 1222(4)(a)(ii). A person is in the class if they hold one of these visas, granted on the stream shown:

Subclass 400 (Temporary Work Short Stay Specialist), any stream
Subclass 403 (Temporary Work International Relations), Domestic Worker (Diplomatic or Consular) stream only
Subclass 407 (Training) and Subclass 408 (Temporary Activity)
Subclass 417 (Working Holiday) and Subclass 462 (Work and Holiday)
Subclass 457 (Temporary Work Skilled)
Subclass 482, both Skills in Demand and Temporary Skill Shortage
Subclass 485 (Temporary Graduate)
Subclass 600 (Visitor), 601 (Electronic Travel Authority), 651 (eVisitor)
Subclass 602 (Medical Treatment), 771 (Transit), 988 (Maritime Crew)
Subclass 995 (Diplomatic Temporary), only where granted on the Division 995.2 criteria

The table has 17 entries covering 16 subclasses, because Subclass 482 appears twice. The instrument also repeals the earlier 2026 instrument that listed visas precluding onshore student visa applications. The effect for a Subclass 485 holder is direct. A graduate who wants to study again must lodge from outside Australia.

4. LIN 26/087: the exception classes

This instrument amends the existing Class TU instrument (LIN 20/158). It does three things.

Definitions and clean-up

“Principal course” is now the course with the highest AQF level under the Subclass 500 visa.
“Provider default” is redefined. It covers a course that does not start, a course that stops before completion, and a course not provided in full to a student. It includes defaults arising from ESOS Act sanctions, suspension or cancellation.
The pandemic-era definitions and several VAC sections (10, 13, 14 and 15) are repealed.

Four classes that can still lodge onshore

These are the classes referred to in paragraph 1222(3A)(d). Each applies to a person seeking the primary Subclass 500 criteria.

Doctoral students: enrolled in a course leading to a doctoral degree when the application is made.
Provider default: unable to complete a registered course because of provider default, enrolled on the default day, needs a further Subclass 500 to complete an alternative course, applies within 12 months of the default day, and has not made an earlier application for the same default.
Completion of studies: holds a Subclass 500, has commenced the principal course (or an alternative with the same provider consistent with visa conditions), has not completed it, and will complete it within 12 months of the end date on the CoE.
Course progression: holds a Subclass 500, has completed the principal course, and is enrolled in no more than one further course. The further course must have a higher AQF level. If the principal course was higher education, the further course must be a higher education course at a higher education provider. If the principal course has no AQF level, the further course must have one, or the person must have been a school student.

Four family classes for secondary applicants

family of foreign government scholarship recipients, where the course or courses are fully funded by a foreign government
family of doctoral students
family of students affected by provider default, who follow the primary student’s default pathway
family of students seeking to complete studies, who follow the primary student’s completion pathway

The amendments apply to visa applications made on or after the day LIN 26/087 commences.

Other points that are easy to miss

Earlier applications are unaffected. The Regulations (Part 166, clause 16601) and LIN 26/087 (section 24) apply to applications made on or after commencement. An application lodged before 2 October is assessed under the old settings.
Bridging visas. Subitem 1222(4)(a) requires the applicant to hold a substantive visa. A person on a bridging visa only must rely on subitem (4A) or (4B).
Visas not on the list. LIN 26/102 excludes only the listed visas and streams. A holder of another substantive visa is not excluded by that limb. Check the stream as well as the subclass, because Subclasses 403 and 995 are caught only in part.
Grant location. An applicant who had to lodge offshore under the new rules must also be outside Australia when the visa is granted (clause 500.411).
Fee concessions. LIN 26/087 repeals sections 10, 13, 14 and 15 of the Class TU instrument and the pandemic-era definitions (PHEIC, relevant PHEIC, reapplying applicant and subsequent person). Check any fee concession advice that relied on them.
Wider provider default. The new definition covers a course not provided in full to a student, and defaults arising from ESOS sanctions, suspension or cancellation. More students may fit the provider default class than before.
Principal course. It is defined by the highest AQF level. Where a visa covers more than one course, that course sets the completion and progression tests.

How the four fit together

The Regulations set the rule. The two LINs write the exceptions. The Code changes the provider side of the same problem. A practical order of questions for an onshore student client:

Do they hold a Subclass 500 as a primary visa holder? They can lodge onshore if they are finishing within 12 months of the CoE end date, moving to a higher AQF level, or fit doctoral, provider default, school, Defence or Foreign Affairs. Otherwise they lodge offshore. A secondary visa holder applying in their own right lodges offshore.
Do they hold another substantive visa? If it is on the LIN 26/102 list, they lodge offshore.
Do they hold no substantive visa? Onshore lodgement needs subitem (4A) or (4B). Subitem (4B) is the ART pathway with the 28 day window.
Is a dependant involved? First ask whether the dependant held a Subclass 500 on 2 October 2026. If not, check the primary applicant’s passport and the four family classes.

What to do this week

Migration agents

Record the visa subclass of each client, and whether it was granted on the primary or secondary criteria.
Review the visa pathways.
Check course level before applying for new visa onshore.

Education providers

Review the Standard 7.2 transfer policy against the amended wording.
Confirm how release decisions, dates of effect and reasons are recorded in PRISMS.
Brief admissions staff on the 12 month test and the 1 July 2026.
Keep written decissions on the student file.

Frequently asked questions

When do the changes start, and do they affect applications already lodged?

All four instruments commence on 2 October 2026. The visa changes apply to applications made on or after that date. Applications lodged earlier are not affected.

Do all current student visa holders have to leave Australia to lodge a new student visa?

No. The rule is offshore lodgement, but a primary Subclass 500 holder can still lodge onshore in the listed classes. These are finishing a course within 12 months of the CoE end date, moving to a higher AQF level, doctoral study, provider default, school students, and Defence and Foreign Affairs students.

Can I change from one Diploma to another Diploma onshore?

Not under the progression class. It requires the further course to have a higher AQF level. A move to the same or a lower level needs another listed class, otherwise the application goes offshore.

I finished my ELICOS course. Can I move to VET or university without leaving Australia?

Yes. A completed course with no AQF level, such as ELICOS, can be followed onshore by a course that has an AQF level. Home Affairs guidance gives ELICOS followed by a bachelor degree as an example.

Can I take another ELICOS course onshore after finishing one?

No. Home Affairs guidance gives this as an example of an application that must be lodged from outside Australia.

I enrolled in ELICOS plus a VET or higher education course. What happens when the ELICOS part ends?

The course with the highest AQF level is your principal course. If you need to extend, the completion class applies once you have started that principal course and it will finish within 12 months of its CoE end date. A student who has finished only the ELICOS part and not yet started the main course may not fit a class as written. Check with the department before relying on it.

Can I extend my visa to finish the course I started?

Yes, onshore, if you have commenced the principal course, have not completed it, and will complete it within 12 months of the end date on the CoE.

Can a graduate, working holiday or visitor visa holder apply for a student visa in Australia?

No. Holders of Subclasses 485, 482, 417, 462, 600, 601 and 651, and the other visas listed in LIN 26/102, must lodge from outside Australia.

My education provider has closed. What are my options?

If you were enrolled on the default day and need a further Subclass 500 to complete an alternative course, you can lodge onshore within 12 months of that day. You must not have made an earlier application for the same default. Under the National Code, a receiving provider may also enrol you without the time test where the releasing provider or course has ceased to be registered.

Can my partner and children stay on my visa?

Family members in Australia who held a Subclass 500 on 2 October 2026, or whose application was already lodged, are protected. They can continue to be included in later applications.

Can I add a new partner or child to my student visa after 02 October 2026?

Only in limited cases. The primary applicant must be a Defence or Foreign Affairs student, or hold a Pacific-regional or specified-country passport. Otherwise a family class must apply: foreign government scholarship, doctoral, provider default, or completion of studies. A child born in Australia on or after 2 October 2026 to an eligible primary applicant is also covered.

I hold a Subclass 500 as a secondary visa holder. Can I apply for my own student visa onshore?

As drafted, no. The onshore exceptions are written for people who hold the visa as a primary holder, so a secondary holder applying in their own right must lodge offshore. Confirm this against departmental guidance.

How long must a student stay with a provider before transferring?

Until 30 June 2027, 12 months of the principal course, except for school sector students, who need the first six months of their first registered school course. From 1 July 2027 it is six months. These time tests do not apply where a Standard 7.1A exception is met.

Can a provider release a student early?

Yes, under Standard 7.1A.3. The releasing provider must agree to the release, record the date of effect and reason in PRISMS, and follow its documented Standard 7.2 policy and process.

What if my student visa was cancelled and the ART set the decision aside?

A narrow onshore pathway exists where the ART set aside a student visa cancellation after the visa had ceased. The application must be made within 28 days of notification of the ART decision. Other cases need individual advice.

Is this legal or migration advice?

No. It is general information based on the four instruments as registered on 1 October 2026. Speak to a registered migration agent before lodging.

Care is not evidence. Proof is. – Educli is a practice management platform and audit-trail tool for registered migration agents.

General information only. This is not legal or migration advice. Read the instruments on the Federal Register of Legislation: F2026L01351, F2026L01347, F2026L01348 and F2026L01349. Ministerial remarks on families onshore as reported by Business Standard, 25 September 2026. Published 2 October 2026.

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