The Australian Coalition government announced plans to reduce net overseas migration to 100,000 annually for two years starting in 2026, the lowest level in recent history. This move includes cutting about 650,000 temporary visa holders over four years from the current figure of approximately 1.77 million, according to opposition leader Angus Taylor.
Permanent skilled migration will be maintained at 185,000 places each year. The plan also sets humanitarian visa places at 10,000 annually, a 50% decrease from the Labor government’s current cap of 20,000. Bridging and temporary protection visa holders will be slashed dramatically, from over 400,000 to 20,000.
International
student commencements will be capped at 240,000, down from more than 337,000 visas issued last year. The Coalition intends to abolish temporary graduate visas, cutting a pathway for recent graduates to stay. Most family members of students will no longer be allowed to enter Australia under the new rules.
Skilled worker visa places will be prioritized based on profession, income, age, English proficiency, and full-time employment status. The construction sector will be given priority in visa allocations. A fee increase will apply to working holidaymaker visas, though exemptions will be granted to backpackers willing to work in regional areas to
support industries such as hospitality and agriculture.
Angus Taylor described the plan as “the biggest cut to immigration in the history of this country,” emphasizing control over borders and immigration policy. Nationals leader Matt Canavan dubbed the plan “an Australia first migration plan,” warning against cheap foreign labor undermining Australian wages. Opposition Labor figures, including Matt Keogh and Ed Husic, criticized the cuts as catastrophic and politically motivated amid global competition for skilled labor. Pauline Hanson of One Nation highlighted her party’s influence over the Coalition’s policy and called herself the only trustworthy immigration advocate.
Business groups expressed concern about
the economic impact. Andrew McKellar of the Australian Chamber of Commerce and Industry cautioned that the scale of cuts could harm the economy, rejecting the notion that Australia must choose between fewer migrants with higher skills or more migrants with lower skills. Master Builders Australia welcomed the skilled migration focus but has not taken a position on the wider policy.
The government also plans to double the talent and innovation visa allocation to 7,000 places annually, including new categories for the Aukus and Five Eyes alliances. Furthermore, a strike force will be created to clear the backlog of skilled construction
visa applications to address workforce shortages.
