Australia announced on Monday that it intends to tighten visa regulations for international students and low-skilled workers, potentially reducing its migrant intake by half over the next two years. The government aims to revamp what it described as a "broken" migration system. The proposed changes include the requirement for international students to achieve higher scores on English tests, and a more rigorous assessment for a student's second visa application, extending their stay.
During a media briefing, Home Affairs Minister Clare O'Neil emphasized that the strategy aims to bring migration numbers back to normal and is not solely about numerical adjustments but also concerns Australia's future. Prime Minister Anthony Albanese echoed this sentiment, stating that migration numbers need to be scaled back to a "sustainable level" due to a perceived broken system.
The targeted reforms, according to O'Neil, are already exerting downward pressure on net overseas migration and will contribute to an anticipated decline in migrant numbers. This decision comes after an expected peak in net immigration at a record 510,000 in 2022-23. Official forecasts predict a decrease to about a quarter of a million in 2024-25 and 2025-26, aligning with pre-COVID levels.
The surge in net overseas migration in 2022-23 was primarily driven by international students, as mentioned by O'Neil. Shares of IDP Education, a provider of placement and education services for international students, experienced a more than 3% decline in afternoon trade.
Australia had increased its annual migration numbers in the previous year to address labor shortages caused by the COVID-19 pandemic. However, this influx of foreign workers and students exacerbated pressures on an already tight rental market, contributing to an increase in homelessness. A survey conducted for the Sydney Morning Herald found that 62% of Australian voters believed the country's migration intake was too high.
Traditionally reliant on immigration to support its labor market, Australia's Labor government has aimed to expedite the entry of highly skilled workers and streamline their path to permanent residency. As part of these efforts, a new specialist visa for highly skilled workers will be established, featuring a one-week processing time to assist businesses in recruiting top migrants amid fierce competition with other developed economies.
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