Australia’s federal government has unveiled modest adjustments to its migration policy, focusing primarily on the temporary migration system, but avoiding major structural reforms. The announcement came during a National Press Club address on Thursday by Tony Burke, the Home Affairs Minister, and follows a period of heightened anticipation for significant policy changes.
The changes target the increasing stock of temporary visa holders in Australia, which has grown substantially from around two million in 2018 to three million in 2025. Approximately 30% of Australians aged 25 to 29 are currently on temporary visas, reflecting the system’s “demand driven” nature, in which the government exerts less control compared to permanent migration. Key groups affected include international students, working holiday-makers, temporary skilled workers, and bridging visa holders.
Among the new measures, the government will impose caps on the number of second- and third-year working holiday visas. These visas will now be allocated via a ballot system, aiming to temper the surge in holders from about 140,000 before the COVID-19 pandemic to 220,000 in recent months. Additionally, restrictions will be introduced to limit the ability of some temporary visa holders, including international students, to extend their stay by moving from one visa category to another. Resources will also be increased to encourage the departure of migrants overstaying their visas.
Officials stated these measures are not expected to lower net migration beyond projections already set out in the May budget, which anticipates a gradual reduction in net overseas migration to around 225,000. The government’s approach emphasizes “tidying up” the system rather than pursuing sweeping changes.
This approach contrasts with the conclusions of the recent Migration Review, led by former Treasury secretary Martin Parkinson, which described Australia’s migration program as “not fit for purpose” and criticized prior efforts as piecemeal reforms failing to address core challenges. Despite these critiques, the government’s latest revisions appear to fall into the same category of incremental adjustments.
Other areas highlighted for potential reform, but yet to see concrete action, include the independent skilled points test, where consultations are ongoing following a discussion paper released in April 2024, as well as a regional migration review initiated in June 2024. These issues are considered critical for improving migrant selection criteria and economic outcomes, particularly as regional visa holders reportedly tend to reside in capital cities and earn less than other skilled migrants.
Migration policy experts note the complexity and difficult trade-offs inherent to the issue, cautioning against simplistic solutions. However, the current government response, centered on procedural tweaks rather than comprehensive reform, may not fully address these underlying challenges or significantly influence public and political debate on one of Australia’s most consequential policy areas.