Does the Temporary Activity subclass 408 visa lead to permanent residence?

The 408 is designed for time-limited participation in approved activities, and once the activity ends the visa is not intended to convert into a long-term or permanent stay.

If you want to remain in Australia beyond your activity, you would need to qualify for and apply for a separate visa, such as a skilled or employer-sponsored visa, each with its own requirements. Treat the 408 as a visa for a defined purpose and timeframe, not as a stepping stone to permanent residence.