Under Prime Minister Anthony Albanese, the Australian government has embarked on a major immigration policy reform, which seeks to lower the country’s soaring net migration figures. Since July 2023, they have reversed several COVID-19 policy measures introduced under the previous Liberal-National coalition government, led by Scott Morrison.
Most notable among these reversals is the curtailment of work rights for international students, which were previously unlimited due to a policy instituted by former immigration minister Alex Hawke. From July 2023, international students will be limited to working 48 hours every two weeks. This change is expected to affect more than 610,000 students currently residing in Australia, who now face financial challenges due to a forecasted weaker labor market, higher interest rates, and escalating living costs.
The number of temporary graduates in Australia has surged due to extended stay provisions by both the Coalition and Albanese governments, from roughly 90,000 in mid-2021 to almost 195,000 by May 2023. However, the weakening labor market could make it harder for these graduates to find long-term skilled employment, which is crucial for obtaining permanent residency through various visas. The minimum salary for this visa will increase to AUD70,000 ($47,734) starting from July 2023.
Under the Coalition government, a fee-free Covid-19 visa stream (subclass 408) was introduced, which was predominantly used by overseas students and temporary graduates unable to leave Australia due to travel restrictions. This visa stream, currently held by almost 100,000 individuals, is likely to cease accepting new applications soon.
Changes were also made to the Working Holiday Maker and the Work and Holiday visas by the Coalition government, leading to an increase in visa holders from 19,000 in early 2022 to 140,000 by May 2023. From July 1, these visa holders are required to change employers every six months.
The new policy initiatives include the introduction of the Pacific Engagement Visa and granting of direct Australian citizenship to long-term New Zealand residents. Furthermore, in response to a Nine Network investigation, the government has commissioned a review of visa integrity, conducted by former Victorian state police commissioner Christine Nixon.
The Albanese government has also declared measures to combat migrant worker exploitation. Notably, it intends to fill the chronic shortage of aged care workers through an aged care labor agreement and incentivize international education providers to cater to health, aged care, education, and IT sectors.
While these reforms are significant, the government has been urged to set a long-term net migration target to guide policy, given that migration will likely be the main driver of population change in the coming years.
