Immigration cuts, higher visa fees: What Australian parties promise in 2025

Business Standard

02-05-2025

Australians are preparing to cast their votes on May 3, 2025, with immigration emerging as a central issue shaping the final days of campaigning. From permanent migration caps to international student visa fees, major parties have laid out markedly different plans for how they would manage Australia's borders and labour needs.
Labor maintains migration targets and focuses on skilled workers
The incumbent Labor Party has kept the permanent migration program at 185,000 places for 2024–25, splitting it 70:30 between skilled and family streams. However, places in the Skilled Independent visa category have been sharply reduced from 30,375 to 16,900.
In a major move, Labor has also abolished the Business Innovation and Investment Program, redirecting efforts towards skilled migration instead. In December 2023, it unveiled a ten-year migration strategy with the target of bringing annual net migration down to 250,000 by June 2025.
If re-elected, Labor plans to increase student visa application fees to A$2,000.
Also Read
Opposition Leader Peter Dutton has promised to cut the permanent migration intake to 140,000 for 2025–26, with a gradual rise to 160,000 in following years. The Coalition has pledged to cut net overseas migration by 100,000, focusing on reductions to skilled independent visas and international student intakes, while keeping working holiday and family visas unaffected.
It has also proposed reintroducing a specialist agriculture visa to tackle farm labour shortages, although critics have warned of potential exploitation risks.
The Coalition has announced a fast-tracked review of the Temporary Graduate Visa (subclass 485), citing concerns that post-study work rights are being used as an unintended pathway to jobs and permanent residency.
Dutton also proposed capping new international student arrivals at 240,000 per year, alongside a steep A\$5,000 visa fee for applicants targeting Australia's top-ranked universities.
Minor and micro parties outline tougher and softer approaches
Several smaller parties are offering different immigration visions:
Greens: propose expanding the humanitarian intake and oppose new fossil fuel developments
One Nation: calls for reducing net migration to around 70,000 a year, a travel ban on certain countries, and withdrawing from the UN Refugee Convention
Sustainable Australia Party: supports reducing migration to 70,000 people per year but keeping refugee intake between 14,000 and 20,000
People First: proposes limiting immigration to under 100,000 work visas, with incentives for settling in regional areas
Post-study work rights spark controversy
The 485 visa allows international students to stay and work in Australia after completing their studies. Recent numbers show a mismatch between student origins and 485 visa holders: while China is the largest source of international students, it ranks third in 485 visa holders. By contrast, students from South Asia, particularly India, make up 60% of all 485 visa holders but only 37% of students.
Phil Honeywood, chief executive of the International Education Association of Australia, said, 'Everything that the Federal Opposition has announced during this protracted campaign has been anti-international students and directed against the 250,000 Australians who work in our beleaguered sector.'
He added, 'If the past is anything to go by, then the outcomes of this review will have been pre-determined: namely reductions in visa applicability, further duration limitations and even potential limitations on partners being able to participate.'
In a post on X, Honeywood commented, "So now we know exactly what the alternative Aus Govt think of our international ed sector! Harsher enrolment caps than Labor, a A$5,000 non-refundable student visa fee (A$2,500 for non-Group of 8 unis). No rent causation link! Sends the wrong signals about multicultural Australia!"
Andrew Norton, higher education commentator and professor at Monash Business School, pointed out that policy swings can create unfair situations for international students.
'Policy swings are also unfair for international students. They respond to the incentives created by Australian governments, only for the rules to change when it comes time for the Australian government to uphold its side of the bargain,' Norton wrote in a blog post.
He argued that Australia's international student industry should honour its commitments, and changes should be gradual, not abrupt.
Norton observed that with high numbers of commencing students in 2023 and 2024, the total number of students will 'remain high by historical standards'. He added, 'As they complete their courses they will form a large pool of potential temporary graduate visa applicants.'
'As of late February this year, I estimate that there were around 1 million people in Australia on student-related visas. I doubt this will fall significantly anytime soon and this may create political pressure for more restrictive policies,' he explained.
Recent changes to the 485 visa
Visa settings for international graduates have already been tightened for 2024–25:
1. Longer visas for skills shortage fields abolished after only one year
2. Masters degree post-study work rights cut back from three years to two, except for Indian students protected under the India-Australia free trade agreement
3. Minimum English language requirement increased from IELTS 6 to 6.5
4. Maximum age for 485 visa eligibility reduced from 50 to 35 years, except for research degree holders
Australia remains top choice for Indian students despite costs
The upcoming elections as very important for Indians as Australia continues to attract strong interest from Indian students. According to IDP Education's March 2025 survey, Australia now accounts for 28% of Indian students' first-choice preferences, ahead of the United States at 22% and the United Kingdom at 21%. Canada's popularity has fallen sharply to 13%, down six percentage points compared with March 2024.
'Despite the rise in visa and tuition fees, Australia continues to see strong interest from Indian students. Many families approach it as a long-term investment, weighing factors like academic quality, post-study work rights, safety, and the overall student experience,' said Piyush Kumar, Regional Director - South Asia, Canada and Latin America at IDP Education.
Opinion polls suggest Labor edging ahead
With the federal election just a say away, opinion polls suggest the Labor Party is on course to retain power, either with a slim majority or by forming a minority government.
A RedBridge-Accent poll for News Corp published on May 1, 2025, showed Labor leading 53%-47% against the Coalition under Australia's preferential voting system. The same survey reported that Millennials and Generation Z voters—who together make up 43% of the electorate—have been pivotal in the late swing towards Labor.
A separate YouGov poll predicted Labor could win up to 85 seats in the 150-seat lower house, marking the Coalition's worst performance since 1946.