Australia has announced plans to tighten visa rules for international students and low-skilled workers, which could result in a significant reduction in its migrant intake over the next two years. The government aims to overhaul what it deems a "broken" migration system and bring migration numbers back to a sustainable level. The new policies include imposing stricter English test requirements for international students and implementing increased scrutiny on second visa applications, which would prolong their stay in the country.
Home Affairs Minister Clare O'Neil emphasized that the government's strategy is not solely focused on numbers, but rather on shaping Australia's future. Prime Minister Anthony Albanese also expressed the need to wind back migration numbers to ensure a sustainable level, highlighting that the current system is flawed.
The targeted reforms are already having an impact on net overseas migration, and the government anticipates that they will contribute to a further decline in migrant numbers. Net immigration was projected to peak at 510,000 in 2022-23 but is now expected to fall to around a quarter of a million in 2024-25 and 2025-26, aligning with pre-COVID levels.
The surge in net overseas migration in 2022-23 was largely driven by international students. However, with the new visa policies in place, Australia aims to strike a balance and ensure that the influx of foreign workers and students does not exacerbate the pressure on an already tight rental market. The country has experienced an increase in homelessness as a result of the strain on accommodation.
A survey conducted for the Sydney Morning Herald revealed that a majority of Australian voters (62%) consider the country's migration intake to be too high. In response to these concerns, the government's reforms aim to address the public sentiment and create a more sustainable migration system.
Australia's Labor government, which heavily relies on immigration to support its labor market, has prioritized the entry of highly skilled workers. As part of the new measures, a specialist visa for highly skilled workers will be introduced with a quick processing time of just one week. This is expected to help businesses attract top talent amidst fierce competition with other developed economies.
The decision to tighten visa rules and reduce the migrant intake is a significant move aimed at reshaping Australia's migration landscape. By implementing stricter requirements for international students and low-skilled workers, the country aims to strike a delicate balance between economic growth and societal well-being. It remains to be seen how these reforms will impact Australia's labor market and its overall migration landscape in the coming years.