Australia’s Permanent Migration Reduced by 25%: New 2025 Policy Explained

Introduction

Australia’s upcoming May 2025 federal election may bring sweeping changes to migration and education policies, with the opposition Coalition proposing stricter regulations to manage international student arrivals and reduce permanent migration. If elected, the Coalition intends to reshape the country’s migration landscape, potentially affecting thousands of aspiring migrants, particularly from India.

Proposed Changes: Migration Cuts and Investor Ban

The Coalition has announced plans to:

Reduce Permanent Migration: A 25% cut to Australia’s permanent migration intake, lowering it from 185,000 to 140,000 annually for the next two years. The intake is expected to gradually increase to 150,000 in year three and 160,000 in year four.

Ban on Foreign Investors: A two-year ban on foreign investors and temporary residents purchasing existing Australian homes to free up over 100,000 homes in the next five years.

Stricter Caps on International Students: Plans to collaborate with major metropolitan universities to impose stricter limits on foreign student enrolments. This move aims to alleviate pressure on city rental markets and address concerns over housing shortages and infrastructure demands.

Decline in Student Visa Arrivals

Australia has already witnessed a 25% drop in student visa arrivals in 2023/24, with arrivals decreasing to 207,000 from 278,000 the previous year. Despite the decline, international students remain a major contributor to net overseas migration, accounting for 39.5% of new migrants.

India’s Significant Role in Student Migration

India continues to be a leading source of international students in Australia. As of 2023, a total of 746,080 foreign students were enrolled in Australian institutions, including:

• 122,391 from India
• 159,485 from China
• 60,258 from Nepal

However, concerns have been raised about the motivations of some South Asian students, with reports suggesting that a portion may be leveraging the student visa system primarily for work.

Post-Pandemic Migration Surge and Policy Concerns

Following the pandemic, Australia has experienced a surge in net overseas migration, with projections for 2024/25 reaching 340,000, up from the initial forecast of 260,000 in May 2024. Despite this growth, the Labor government is under mounting pressure to address public concerns over migration’s impact on housing, infrastructure, and essential services.

Impact on Housing and Infrastructure

With over 860,000 people currently holding student or post-study work visas—making up more than 3% of the population—the ongoing debate on managing international student intake remains crucial. The opposition has highlighted that migration surges have strained the housing market, with demand for accommodation exceeding supply.

Potential Consequences for Indian Migrants

If implemented, these reforms could significantly impact Indian migrants, many of whom seek permanent residency through the student visa pathway. The proposed reduction in migration intake and stricter caps on student enrolments may hinder their chances of securing long-term residency in Australia.

Upcoming Election: A Defining Moment for Migration Policy

With immigration becoming a key political issue, the May 2025 election is expected to shape Australia’s migration policies for the foreseeable future. Voters will weigh the impact of stricter migration controls against the economic and social contributions of international students and skilled migrants.

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