The Australian government, led by Angus Taylor, announced a reduction of 650,000 temporary visas over four years, marking the largest immigration cut in the country’s history. The Coalition plans to reduce net overseas migration to 100,000 annually for the first two years, then increase to 130,000 and 160,000 in the third and fourth years, respectively.
Temporary Visa Reductions and Caps
Currently, there are an estimated 1,766,200 temporary visa holders in Australia this financial year. The announced reforms would slash humanitarian visa allocations from 20,000 to 10,000 places annually and reduce bridging and temporary protection visa holders from more than 400,000 to just 20,000. International student
commencements are set to be capped at 240,000, while temporary graduate visas will be abolished. Additionally, most family members of international students will no longer be allowed to come to Australia.
Skilled Migration Prioritization and Fees
The policy emphasizes prioritizing skilled worker visa allocations based on profession, income level, age, English skills, and full-time employment status, with a particular focus on the construction sector. Working holidaymaker visa fees will increase, except for backpackers working in regional areas. The government also plans to link the number of arrivals to housing completions and establish a strike force to clear skilled construction visa application backlogs. Talent and innovation
visa places will double to 7,000 through new visa streams aligned with Aukus and Five Eyes agreements.
Political Responses and Criticism
Angus Taylor described the plan as “the biggest cut to immigration in the history” of Australia and said it would “regain control of our borders”. Nationals leader Matt Canavan called it “an Australia first migration plan”. Pauline Hanson, leader of One Nation, criticized the Coalition and Labor for their immigration policies, asserting that “only One Nation can be trusted to stand up for Australians on immigration.” Labor leaders have warned that the cuts would be “absolutely catastrophic” for the Australian economy and accused
the Coalition of politicizing immigration amid a global race for skilled labour.
Industry Reactions and Economic Considerations
Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry, cautioned that the scale of cuts would harm the economy and rejected framing migration as a choice solely between numbers and skill levels. Master Builders Australia welcomed the focus on skilled migration but remained undecided on other elements of the reforms. The policy arrives amidst increasing political pressure due to rising support for One Nation, whose platform includes even deeper migration cuts.
Policy Background and Rationale
The Coalition’s policy aims to “regain control of borders and immigration” and align immigration with
national interests, as stated by Angus Taylor. The reform follows anti-migration sentiment emphasized by One Nation and Labor. Taylor criticized the tertiary education sector for prioritizing visa pathways over education and asserted a commitment to ensuring Australians receive a living wage without being undercut by cheap foreign labour.
