The decision was communicated by Australian Home Minister Tony Burke during a phone conversation with Bangladesh's Home Adviser, Lt Gen (retd) Jahangir Alam Chowdhury, on Thursday.
The Home Adviser promptly informed the Council of Advisers about the new policy, which is set to take effect immediately.
This shift in visa processing follows a request made by Bangladesh's Chief Adviser, Prof Muhammad Yunus, during a meeting with Minister Burke in October last year. At that time, Yunus had urged Australia to resolve the backlog of visa applications from Bangladeshi migrants, which was previously handled through Australia's High Commission in New Delhi.
The move is expected to ease the visa application process for Bangladeshi nationals, cutting down on delays and improving accessibility to Australian immigration services.