Australia Unveils Plans to Drastically Reduce Migrant Intake and Tighten Visa Rules

Australia has announced a comprehensive plan to cut its migrant intake by half over the next two years, coupled with stringent measures affecting international students and low-skilled workers. The move comes as the government aims to overhaul what it deems a "broken" migration system.

Under the proposed changes, international students will face stricter English test requirements, and increased scrutiny will be applied to second visa applications, potentially extending their stay. Home Affairs Minister Clare O'Neil, speaking at a media briefing, emphasized that the strategy aims to return migration numbers to normal while acknowledging the broader impact on Australia's future.

Prime Minister Anthony Albanese recently emphasized the need to bring migration numbers down to a "sustainable level," highlighting concerns about a system he described as "broken." O'Neil asserted that the government's targeted reforms are already curbing net overseas migration, contributing to the anticipated decline in migrant numbers.

This decision follows an expected peak in net immigration at a record 510,000 in 2022-23, with projections indicating a decline to around a quarter of a million in 2024-25 and 2025-26, aligning with pre-COVID levels. O'Neil attributed the surge in net overseas migration in 2022-23 primarily to international students.

Shares of IDP Education (IEL.AX), a provider of placement and education services for international students, dipped more than 3% in afternoon trade in response to the news.

Australia had increased its annual migration numbers last year to address staffing shortages caused by the strict border controls during the COVID-19 pandemic. However, the sudden influx of foreign workers and students has exacerbated pressure on the already tight rental market, contributing to a rise in homelessness.

A survey conducted for the Sydney Morning Herald revealed that 62% of Australian voters believe the country's migration intake is too high. Long reliant on immigration to sustain its tight labor market, Australia's Labor government is now prioritizing the entry of highly skilled workers and streamlining their path to permanent residency.

As part of these efforts, a new specialist visa for highly skilled workers will be established, with a processing time set at just one week. This move aims to assist businesses in recruiting top-tier migrants amidst fierce competition with other developed economies.

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