Coalition promises deep cuts in migration fight with One Nation, Labor

The Coalition would slash Australia's temporary migration intake by about 650,000 over four years through deep cuts to graduate, refugee and bridging visas that go further than Labor's plan.

Opposition Leader Angus Taylor has unveiled what he described as the "biggest cut to immigration in this country's history", declaring he was "confident" the changes would be budget "neutral" but without offering modelling on the broader economic impact of the policy.

Under a future Coalition government, net overseas migration (NOM) would be slashed to 100,000 for the first two years, followed by 130,000 in the third and 160,000 in the fourth year.

Australia's NOM fell to 292,100 people in the year to March, with Labor pursuing a target of 245,000 for this financial year and 225,000 the year after.

Mr Taylor said Australia needed "breathing space" after several record years of migration post-pandemic, arguing this was best achieved by slashing temporary migrants and prioritising high-skilled workers, including in construction.

"Australia should be a home, not a hotel," he said.

One Nation has announced it would cut 750,000 temporary visas, resulting in a negative NOM for three years and then an intake of 130,000 people in the fourth year.

Mr Taylor announced the Coalition's alternative proposal on Tuesday, which includes a cap on student visas and halving Australia's humanitarian intake to 10,000 annually.

The biggest cut is to bridging visas, which would go from about 414,00 to 20,000 by forcing temporary visa holders to leave Australia if they want to apply for a new visa. 

The Coalition would also impose a 30-day limit for anyone wanting to make an onshore claim for asylum in Australia.

What are each party's migration targets?  

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Which visas would be affected? 

Temporary graduate visas would be scrapped except for some limited post-study pathways for PhD, health and education graduates, as well as those studying at regional universities.

The Coalition would cap international student commencements at 240,000, restrict most dependents from accompanying them and link each student visa to the institution they enrolled with.

Mr Taylor said he would increase the share of skilled migrants, including about 60,000 more temporary skilled visa holders and 15,000 new skilled project visas a year for major projects.

The talent and innovation allocation would double to 7,000 through a new AUKUS and Five Eyes visa, while permanent applicants would be prioritised based on factors like age, income, English language proficiency and skilled partners.

The temporary skilled priority list would be changed to fast track construction and prioritise employer-sponsored migration in regional Australia.

Broadly, anyone making a second or subsequent temporary visa application would have to leave Australia and lodge the paperwork offshore.

The Coalition would scrap Labor's caps for second and third-year working holiday maker visa extensions and instead increase fees with exemptions for those who completed required regional work.

Economic knock-on effects

The cuts would initially bring Australia's migration levels down to the lowest outside the pandemic since 2004.

Mr Taylor said the Coalition had been working with the Parliamentary Budget Office (PBO) and the policy would be "neutral" on the federal budget.

He did not release any costings but implied this would be achieved by an increase in skilled migrants at the expense of other visa classes.

Mr Taylor said the economics were "simple" because a student or temporary graduate visa holder contributed on average $7,000 to $14,000 in taxes compared to a temporary skilled visa holder contributing more than $30,000.

"If you bring people in who can make a … significant contribution and they're going to work hard, then it's better for the budget and the economy,"

he said.

Mr Taylor accused Labor of using population growth to prop up Australia's broader economic prosperity but did not release modelling showing what such a large reduction in migration would mean for the economy.

The Coalition has promised to release costing closer to the federal election in 2028.

One Nation reacts to Coalition policy

Nationals leader Matt Canavan described the measures as a plan to "take back our country" from temporary migrants, who he accused of undercutting Australians' wages.

"We are a country, not a campground," he said.

One Nation leader Pauline Hanson, who unveiled her own policy to dramatically reduce temporary migration last month, said the Coalition had turned up "late to the grand final" with a policy after "both teams have headed back to the changerooms".

She said Labor and the Coalition had both been "dragged kicking and screaming" into the debate by One Nation.

"It might sound like Liberal and Labor are saying the right thing, but actions speak louder than words," Ms Hanson said.

Labor's limits on visas

Last month, the federal government unveiled several changes aimed at reducing Australia's migration intake, with measures largely targeting students and their families as well as working holiday-makers.

Under changes that came into effect on Friday, international students would largely be barred from bringing family, would need a new visa to change courses and could only move to a higher-level qualification after graduating.

Limits imposed on the working holiday-maker program included the introduction of a ballot system for visa holders hoping to stay in Australia beyond one year.

The ballot would be capped at 45,000 second-year places and 5,000 third-year places, down from about 57,000 and 31,000 respectively last year.

Labor also redesigned the skilled migration points test to give greater recognition to construction trades, with those regulatory changes made about two weeks ago.