The BGA Australia team, led by Managing Director Michael “Mick” McNeill, wrote a client update on Australia’s new migration policy.

Context

  • Australia’s Labor government has announced an overhaul of migration policy in response to growing public concern over the impact of population growth on housing affordability, infrastructure and social cohesion. While the government is widely favored to win the next election, to be held in 2027 or 2028, its support has slumped following the December 2025 Bondi Beach terrorist attack, rising inflation and interest rates and taxation changes that have precipitated a downturn in the housing market.
  • Australia’s net overseas migration is now just over 292,000, the smallest number since mid-2022, despite a surge of temporary migration following the easing of COVID-19 restrictions. Nevertheless, the government has acknowledged that the number of temporary migrants must be reduced. More than 1 million temporary visa holders in skilled, student and working holidaymaker categories entered Australia under the “demand-driven system” last financial year. More than 3 million temporary migrants are in Australia (the country has a total population of 27.9 million) without the rights of permanent residents or citizens. They now make up more than 16 percent of the working-age population.

Significance

  • The government is determined to reduce annual net overseas migration from about 300,000 to 225,000 by 2028 while prioritizing skilled visas in critical sectors. Plans to achieve this include cutting the number of temporary visas, ensuring migrants leave Australia once their visas have expired, preventing so-called “visa hopping” and limiting the ability to claim asylum. Additionally, the government wants to effectively block international students from bringing their families to Australia, which has concerned universities. Australia’s GDP growth has been underpinned by population growth in recent times — some argue Australia is in per capita recession — and universities, tourism, agriculture and hospitality are highly dependent on temporary migrants.
  • Growing unease about the country’s direction has been exploited by the right-wing One Nation party, which has put immigration at the core of political debate. The migration changes announced by Home Affairs Minister Tony Burke, who has leadership aspirations and is close to the prime minister, are an attempt to take control of the debate and put pressure on Labor’s political opponents to release policies. Burke said the lower levels of migration called for by the opposition and One Nation party would “trash the Australian economy.” Ironically, Burke wanted deeper cuts but received pushback from Cabinet colleagues. South Australia Premier Peter Malinauskas, of the Labor Party, warned against setting arbitrary net overseas migration targets to cut immigration, arguing instead for a skills-focused approach.

Implications

  • Companies can expect working holiday visas to be cut in the second and third years via a ballot process. Burke said this would reduce the number staying for a second year from 57,000 to 45,000, and those remaining for a third year from 31,000 to 5,000. This model already applies for temporary migrants from China, India and Vietnam. The National Farmers’ Federation said this would leave crops stranded in fields and was a “low blow” by a government not engaging in “serious” policymaking. Tourism and Transport Forum CEO Margy Osmond said, “the government has taken tens of thousands of potential visitors and workers out of the pipeline.” One Nation leader Pauline Hanson accused Labor of “starving” regional Australia of labor and tourists. “The government would rather destroy industries in regional Australia than face the problem of unskilled arrivals and students head-on,” she said.
  • Businesses should know that Burke directed his department to prioritize skilled visa applications in health care, construction, education, law enforcement, defense, resources, agriculture, aquaculture and fishing. Changes will be made to the points test, a scoring system used to rank and select skilled workers for visas. Workers with a trade will be given the same points status as university graduates when seeking a skilled migrant visa. Skilled migrant visa applications from people already in the country will be prioritized.

We will continue to keep you updated on developments in Australia as they occur. If you have any comments or questions, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team

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Managing Director

Mick is a highly-experienced government relations expert and trusted advisor on consensus building, conflict resolution and legislative developments. He has played an integral role in helping parties achieve desired outcomes in areas of national security, health policy, foreign policy and reputational crisis management, as well as media relations, communications campaigns, immigration and human rights. Mick has two decades’ experience working with government as a media analyst, political adviser and NGO advocacy manager. After a stint serving as an adviser to an Australian senator, Mick took on the role of the locally engaged senior political specialist at the U.S. Embassy in ... Read More