Next Story
Newszop

Australia's new migration strategies may tighten pathways for international students and skilled visa workers

Send Push
Australia is set to continue reducing its net migration under the leadership of Prime Minister Anthony Albanese, following the Labour Party’s recent re-election. This will impact multiple visa categories, particularly those under the ‘Skills in Demand’ program. While a cap on international student intake appears unlikely, fee hikes and stricter processes are expected across the board, according to a report by Lubna Kably in The Times of India.

The Indian diaspora remains the second largest migrant group in Australia, behind the UK. As of June 2023, 8.45 lakh Indian-born individuals were living in the country, compared to 3.78 lakh a decade ago, according to Australia’s Department of Home Affairs. During 2023–24, permanent residency was granted to 49,848 Indians, marking a 21% rise from the previous year. In contrast, student visas granted to Indian nationals dropped by over 50%, with only 50,516 visas issued compared to 102,696 in 2022–23. Skilled worker visas also saw a decline from 27,402 to 18,397.

Immigration experts expect the downward trend in intake to persist. “In the lead up to the 2025 election, now won by the incumbent Labor party, immigration policy was a significant point of contention between the leader of the opposition - Peter Dutton and Prime Minister Anthony Albanese,” said Mike Wall, Managing Director, Gateway Immigration Solutions. “Albanese's approach was more balanced with a 10-year migration strategy to reduce annual net migration to 2,50,000 in 2024-25 and tighten visa processes,” he added.

The government has projected net migration to fall to 2,50,000 in 2024–25, 2,55,000 in 2025–26, and 2,35,000 in 2026–27. This includes tougher tests for international students and a shift towards high-skill workers.

Nicole Kirkwood, Managing Director at Australia Visa and Immigration Experts (AVIE), told Kably,“The Labour party’s win will be great for Australians if the government can overcome the logistical hurdles required to fulfil their election promises... While the Labour party has not announced any changes to numbers of immigration prior to the election it is clear from our conversations with employers that there are just not enough skilled workers in Australia who can or are willing to do the work needed now.”

Australia’s ‘Skills in Demand’ visa, which replaced the previous regime in December, has introduced new pathways and higher income thresholds. “With the return of the current Labour led Government, we expect the current set of reforms on the Skilled Visa Program and the migration strategy reform agenda to continue,” said Teresa Liu, Managing Partner (Australia & New Zealand), Fragomen to Lubna Kably. “It is largely business as usual for most of the program from a policy reform perspective... if a business or employee is looking to relocate to Australia, that planning should happen now.”

The Core Skills Occupations list, which covers most roles, is due for revision. The income threshold for this category will increase from AUD 73,150 to AUD 76,515 from July 1, 2025. For high-income roles under the Specialist Skills pathway, the income threshold will rise from AUD 135,000 to AUD 141,210 from the same date.

Liu added, “Based on Prime Minister Albanese’s victory speech last night as to the importance of local labour protections and the strong Trade Union heart base of the Labour Government, reforms to remove or provide flexibility to Labour Market Testing... is unlikely to occur.”

Experts also raised concerns over delays in visa processing. “When the Skills in Demand visa was introduced last December, it came with the promise of fast processing of 7–14 days. However, five months later processing times are 46–84 days,” said Kirkwood.

Wall also pointed to backlog issues. “Over the last 6–12 months, we have already seen a significant tightening of visa processes by the Albanese Government... subclass 482 work visa applications lodged as far back as 6 to 9 months ago remain undecided to this day,” he said.

Delays extend to employer-sponsored permanent visas, with some cases taking up to 18 months. “Businesses will be hoping for government strategies to facilitate more streamlined processing of employer sponsored visas,” Wall added.

On student visas, the government has signaled a further fee hike by July. Liu said, “The government has signaled a further rise in student visa fees... making this one of the most expensive immigration programs around the world.”

Australia currently charges AUD 1,600 for a student visa, up from AUD 710 last year. The new proposal may raise this to AUD 2,000.

India remains the second-largest source of international students in Australia. As per the Department of Education, 1.39 lakh Indian students were enrolled in 2024, compared to 1.26 lakh in 2023.

Temporary visa grants to Indian nationals have fallen across most categories. The total fell to 4.13 lakh in 2023–24, down from 5.84 lakh the previous year.

The outlook suggests that while Australia remains an attractive destination for Indian migrants, navigating its immigration system may become more challenging in the coming year.

(With inputs from TOI)
Loving Newspoint? Download the app now