From 1 March 2026, the Government has doubled the application charge for the #Temporary Graduate visa (#subclass485) to $4,600 for most primary applicants.

For employers, this is not just a student issue. Subclass 485 holders have unrestricted full time work rights. Many businesses rely on them as skilled, work ready talent while planning longer term sponsorship.

What this means for employers

A smaller candidate pool

The higher upfront cost may deter some graduates from applying, particularly those without strong financial backing. This could reduce the immediate availability of skilled graduates in sectors that depend on them.

Greater competition for talent

Employers may find it harder to secure high performing graduates who now need to weigh up a significantly higher personal investment to remain in Australia.

Earlier pressure to sponsor

Graduates who decide the 485 pathway is no longer viable may seek employer sponsorship sooner, shifting cost and compliance responsibility to the business earlier than anticipated.

Budget implications for businesses who contribute to visa costs

Some employers choose to reimburse or support visa expenses. If that forms part of your attraction strategy, this change materially increases that investment.

Practical options to consider

• Review your workforce planning if you rely heavily on 485 visa holders

• Identify high value graduates earlier and assess sponsorship pathways proactively

• Consider whether sponsorship under a skilled visa aligns better with your medium term workforce needs

• Be clear in recruitment discussions about who bears visa costs

The key point is this: the 485 visa has been a flexible, lower barrier pathway that allowed employers to access full time graduate talent without immediate sponsorship obligations. The cost shift may change behaviour on both sides.

Strategic workforce planning will matter more from here.

Contact us for assistance and advice.