Labor premiers and business groups have urged the Albanese government to reconsider plans to reduce immigration levels, warning that cuts to visa numbers could harm the economy and exacerbate labor shortages across key sectors. These concerns come ahead of a potential government announcement on migration restrictions expected as early as next week.
South Australian Premier Peter Malinauskas emphasized the importance of migration in addressing critical workforce gaps, particularly in trades essential to the housing construction industry. Speaking on ABC radio, Malinauskas argued that Australia faces a housing supply problem rather than a migration crisis. He stressed the need to attract skilled workers, such as electricians, to support housing development and accommodate population growth.
The Albanese government is reportedly working to slow the influx of temporary visa holders, particularly by reducing the processing rate of working holiday visas. Home Affairs Minister Tony Burke confirmed on August 17 that these measures aim to lower net overseas migration, which reached nearly 301,000 in 2025, significantly higher than the pre-pandemic average of around 210,000 annually. Migration levels have become a point of political contention amid public concerns over housing affordability and infrastructure pressures.
Liberal Party leader Angus Taylor has argued for capping immigration based on housing availability, suggesting numbers should be limited to around 170,000 or fewer at present. However, this position has drawn criticism from various state leaders and business representatives, who view immigration as vital to economic growth.
Victorian Premier Ben Carroll described migration as essential for the state’s prosperity, highlighting its role in sustaining the workforce in healthcare, agriculture, and other industries. Carroll also cautioned that political debates focused on immigration cuts risk damaging sectors like international education, which is Victoria’s largest services export. Similarly, Western Australian Premier Roger Cook has voiced support for maintaining strong migration levels to support regional economies.
Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry, called for a more nuanced discussion on migration rather than "arbitrary" limits, warning that overly restrictive policies could stunt economic development and labor market recovery.
In Canberra, representatives from farming, hospitality, and tourism sectors have voiced concerns over recent policy changes impacting working holiday visa holders. Michael Guerin, CEO of the National Farmers Federation, criticized government actions taken without consultation, pointing to the vital contribution of temporary overseas workers to Australia’s food security. He stressed the need for flexible visa arrangements to support agricultural producers amid a backlash against migration in regional communities.
As the debate intensifies, officials face growing pressure to balance immigration control with economic and workforce demands, while addressing public anxieties related to housing and infrastructure.