The Coalition government’s recent migration plan has drawn criticism from advocates who warn it may violate Australia’s free trade agreement with India and adversely impact the economy. The agreement, established under the former Morrison government, permits Indian students to remain in Australia and work for up to four years after completing their studies.
On Tuesday, Angus Taylor outlined the Coalition’s proposal to reduce net overseas migration to 100,000 annually during the first two years of government, with a gradual increase to 160,000 by the fourth year. The plan includes eliminating temporary graduate visas, significantly cutting international student, bridging, and temporary protection visas, and halving the intake of humanitarian places.
A key measure in the plan is the drastic reduction of temporary graduate visas—from 271,200 currently to just 10,000 by 2031-32. Jonno Duniam, the shadow home affairs minister, stated that graduates wishing to remain in Australia would need to return to their home countries and reapply for separate temporary visas. Duniam argued that the existing system had led universities and educational institutions to promote migration pathways towards permanent residency or citizenship, rather than focusing solely on education.
Proponents of the changes contend that abolishing the temporary graduate visa program will allow the government to prioritize skills that align directly with Australia’s labor market needs. However, critics warn that the cuts could breach the terms of the Australia-India free trade agreement, which aims to facilitate educational and workforce mobility between the two countries. Such a breach might strain diplomatic relations and deter Indian students—an important economic and cultural cohort—from studying in Australia.
The planned reductions in international student numbers and temporary migration visas also raise concerns about the potential economic impact, particularly for universities and industries reliant on skilled overseas workers. International students contribute significantly to Australia’s education sector revenue and broader economy, and decreased numbers might lead to financial shortfalls and labor shortages in critical sectors.
The Coalition’s migration strategy signals a shift toward stricter control over temporary migration and a reevaluation of education-linked pathways to residency. The government maintains that these reforms will better align immigration with national economic priorities, though stakeholders emphasize the need for careful consideration of international agreements and the economic consequences of such policies.