The Australian government has decided to scrap the Subclass 408 or Covid work visa that is expected to affect a sizable number of Indian students, IANS reported.

Subclass 408, also known as a temporary work visa, allows applicants to work in Australia if they are employed or have an offer of employment in a key sector.

"The government is currently considering its ongoing suitability. This includes consideration of an end date for closing eligibility of the visa (Subclass 408) and proposed approach to returning to normal operations," the Department of Home Affairs (DHA) told a media company in Australia.

The development coincides with the Australian government's move to impose a new working hour limit of 48 hours per fortnight for foreign students, beginning July 1.

The Covid work visa offered students the freedom to work unlimited hours but now work hour caps will return, reducing their income.

However, international students working in the aged care sector will be exempted from this cap until December 31.

"The closure of this visa will affect many, including international students. They will be looking at a different visa to stay in Australia and for which they will pay," Suman Dua, a migration expert said.

The Covid work visa was initially introduced to provide relief for foreign students in Australia who were unable to leave the country during Covid-related border closures. It allowed students to live in the country for an additional 12 months if their visas expired.