By Cathrine Burnett, Principal Migration Agent Ferntree Migration
The Department of Home Affairs, from 1 March 2026, has increased the visa application charge for the Temporary Graduate 485 visa (Subclass 485) to AUD $4,600.
This is a significant cost increase to Australia’s primary post-study work visa and has direct implications for international graduates, employers, and the skilled migration pipeline.
Notably, the Department update confirms the fee increase but does not publicly provide a detailed policy rationale on the 50% increase in the visa fee.
The role of the 485 visa in the skilled migration pathway
In practice, the 485 visa functions as a critical transition visa between study and skilled employment. It provides lawful full-time work rights, enabling graduates to obtain relevant skilled work experience in Australia after completing their studies.
For many applicants, this experience is essential to progressing to employer-sponsored visas.
Legislative and practical pathway sequencing: 485 to 482 visa
Under the 482 (Skills in Demand) visa framework, applicants must demonstrate that they possess the skills and relevant work experience necessary to perform the nominated occupation in accordance with legislative criteria and associated policy guidance.
In practical terms, this commonly requires at least one year of relevant full-time skilled work experience (or equivalent) in the nominated occupation.
This creates a clear pathway structure:
Student visa → 485 visa (post-study work rights) → Relevant skilled work experience → 482 sponsorship eligibility
If the 485 visa becomes financially inaccessible, some graduates may be unable to obtain the lawful skilled work experience required to meet legislative experience thresholds for employer sponsorship.
Impact on labour shortages and workforce supply
Many Australian industries rely on 485 visa holders as part of their graduate and entry-level skilled workforce, particularly in sectors experiencing ongoing labour shortages, including hospitality, health and aged care, IT, engineering, professional services, and construction-related roles.
Limiting accessibility to the 485 pathway may therefore have broader labour market implications, as Australian-educated graduates represent a key pipeline of sponsor-ready talent already trained within the domestic education system.
Increased reliance on more complex visa pathways
Where graduates cannot access the 485 visa due to cost, immediate transition to a 482 visa may not be viable due to legislative skill and experience requirements.
In such cases, employers may consider the Subclass 407 Training visa. However, the 407 pathway is significantly more administratively burdensome, requiring structured training plans, enhanced documentation, and ongoing obligations. This introduces additional red tape for employers compared to the 485 visa, which provides open work rights and greater workforce flexibility.
Policy and system implications
While visa application charges are set through legislative mechanisms and subject to adjustment, cost settings of this scale inevitably influence migration behaviour regardless of stated intent.
From a system perspective, increasing the cost of the primary graduate work visa may:
- Raise financial barriers for recent graduates
- Delay transition into employer-sponsored pathways
- Increase reliance on more complex visa subclasses
- Further constrain labour supply in shortage sectors
A key policy consideration is whether increasing the cost of the 485 visa strengthens the skilled migration framework or inadvertently restricts access to the very cohort that typically transitions into long-term skilled sponsorship and fills critical skills shortages.
What students and employers should consider
Students nearing graduation should review their visa strategy early, particularly where post-study work experience is required to meet future sponsorship eligibility.
Employers who rely on international graduates should also factor the increased 485 visa cost into workforce planning, recruitment pipelines, and long-term sponsorship strategy.
Graduates and businesses potentially impacted by the increased 485 visa application charge should seek tailored migration advice to assess appropriate pathway options, including 485, 482, and training visa considerations where relevant.
Employers who rely on international graduates should not treat this as a student issue alone. Changes to the 485 pathway directly affect recruitment pipelines, sponsorship eligibility, and workforce continuity.
Strategic visa planning should now form part of broader workforce planning discussions.
Ferntree Migration works with both graduates and employers to design legally compliant, commercially practical migration pathways aligned with business needs.