Student Visa Changes and implications of the ESOS Bill 2024: A Practitioner’s Perspective
The landscape of Australia’s student visa program has undergone significant shifts following the introduction of the Migration Strategy in 2023 and the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 (ESOS Bill), introduced in May 2024. These changes have profound implications for international students, educational institutions, and migration practitioners.
One of the key action items of the Migration Strategy was to strengthen the integrity and quality of international education by “lifting standards for international students and educational providers, whilst ensuring graduates help meet skills shortages and do not become ‘permanently temporary’.”[1]
Implications for visa holders / applicants
In an effort to address the permanent temporariness and restrict “visa hopping”, the Department of Home Affairs (the Department) added additional visa subclasses that, from 1 July 2024, can no longer apply for a student visa while onshore in Australia. The restricted subclasses are as follows[2]:
|
Restricted prior to 1 July 2024 |
Restricted from 1 July 2024 |
|---|---|
|
Subclass 988 |
Subclass 485 |
|
Subclass 403 |
Subclass 600 |
|
Subclass 426 |
Subclass 601 |
|
Subclass 771 |
Subclass 602 |
|
Subclass 995 |
Subclass 651 |
The following statistics indicate the implications of the above restrictions and the Government’s commitment to more scrutiny of the student visa program:
Source: Department of Home Affairs, The Administration of the Immigration and Citizenship Programs, 14th edition (December 2024), p. 12. Accessed 11 March 2025.
The above graph shows a decline in student visa applications as follows
2022-23: 590,304 applications lodged.
2023-24: 580,193 applications (1.7% decrease).
2024-25 (as of Dec 31, 2024): 203,682 applications, marking a 27.9% decline compared to the same period in the previous year.
Implications for Education providers:
A significant aspect of the ESOS Bill relates to the Minister’s power to manage and control the growth of international student enrolments by introducing caps for education providers. The student enrolment caps were due to come into effect on 1 January 2025; however, in November 2024 there was a second reading and debate of the ESOS Bill but the bill was not passed. Despite this, in December 2024, Ministerial Direction 111 was introduced.
Ministerial Direction 111 prioritises offshore student visa applications based on specific criteria and confirms that providers in higher education and VET sectors, who have not yet reached 80% of their intended caps (under the unpassed ESOS Bill) will receive high priority processing for student visas. These changes apply to all applications pending decision or lodged on or after 19 December 2025. It is unclear whether the ESOS Bill will be passed at a later date, but for now the limitations expected from the intended caps seem to be informally operational.
Looking Ahead: What This Means for International Students & Education Providers
The recent policy shifts has evidenced or will likely lead to:
Greater scrutiny on visa applications, requiring students to present stronger justifications for their stay.
Limited onshore transitions, meaning students must plan their visa pathways carefully before arriving in Australia.
Sectoral impacts, particularly on institutions relying heavily on international enrolments.
Education providers, migration practitioners, and prospective students must stay informed and adapt their strategies to navigate the evolving regulatory framework.
[1] Australian Government, Migration Strategy – At a Glance (2023), p.3 <<https://immi.homeaffairs.gov.au/programs-subsite/migration-strategy/Documents/migration-strategy-at-a-glance.pdf>> accessed 4 April 2025.
[2] LIN 24/051 <http://www.immi-to-australia.com/pdf/20240712/LIN_24-051.pdf>. Accessed 4 April 2025.
Please note that this publication is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances.
If you have found the publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances, please contact us at info@ruppertlegal.com.au or make an appointment at a time convenient to you via the Ruppert Legal Booking Page.
