The Australian government announced plans to reduce the number of temporary visas by 650,000 over four years starting in 2026. This cut will lower net overseas migration to 100,000 annually for the first two years, increasing to 130,000 in the third year and 160,000 in the fourth. The permanent skilled migration program will remain unchanged at 185,000 places per year.
Visa Categories Affected by the Reductions
Temporary visa holders currently number approximately 1.77 million this financial year, and the reduction targets more than a third of this group. Humanitarian visa places will be halved to 10,000 from the current cap of 20,000. Bridging and temporary protection
visa holders will drop drastically from over 400,000 to just 20,000. International student commencements are set to fall to 240,000 annually, with overseas enrolment in higher education institutions declining below 25%. Additionally, temporary graduate visas will be abolished and most international students’ family members will be restricted from entering Australia. Working holidaymaker visa fees are planned to increase, except for those working in designated regional areas.
Government Rationale and Political Context
Minister Angus Taylor described the plan as “the biggest cut to immigration in the history of this country.” He stated the policy would be budget neutral and would not harm the economy. Taylor emphasized
regaining border control and ensuring immigration policies serve Australia’s interests. Nationals leader Matt Canavan labeled it “an Australia first migration plan,” calling for protecting Australian wages against cheap foreign labor. The migration reductions respond to rising anti-migration sentiment exploited by One Nation and Labor parties, with arrivals linked to housing completions within Australia. A new visa category under Aukus and Five Eyes will double talent and innovation visa places to 7,000. A specialized strike force will address skilled construction visa backlogs to focus on workforce shortages.
Industry and Opposition Responses
The Australian Chamber of Commerce and Industry’s CEO Andrew McKellar warned that the scale
of cuts could damage the economy, rejecting the notion of choosing between fewer high-skilled migrants or more low-skilled migrants. Master Builders Australia welcomed the emphasis on skilled migration but withheld position on other policy elements. Opposition figures criticized the cuts; Labor frontbencher Matt Keogh called them “absolutely catastrophic” for the economy and services. Labor MP Ed Husic accused the Coalition of politicizing immigration amid a global competition for skilled labor. One Nation leader Pauline Hanson criticized both major parties for late and inadequate immigration responses and asserted only One Nation can be trusted on immigration.
Impacts on Travellers and Workforce
The tightened visa regulations will
reduce opportunities for international arrivals seeking work or study in Australia. International students will face stricter limits on commencements, lose access to temporary graduate visas, and have family entry restricted. Working holidaymakers will encounter increased visa fees unless they commit to employment in regional Australian areas, supporting sectors like hospitality and agriculture. Skilled worker visas will be prioritized based on profession, income, age, English proficiency, and full-time employment status, with construction getting special focus.
