As Australians head to the polls on May 3, immigration policy is no longer a side issue—it’s at the centre of the nation’s economic future. From sharp visa fee increases to major cuts in migration numbers, both major parties are proposing dramatically different paths that could reshape the workforce, housing market, and higher education sector for years to come.

But what do these policies actually mean for everyday Australians and the economy?

Labor’s Strategy: Skilled Migration and Steady Intake

The Labor government is holding the permanent migration program at 185,000 places for 2024–25, with a 70:30 split between skilled and family visas. That said, they’ve made significant internal adjustments—most notably, halving places for Skilled Independent visas and scrapping the Business Innovation and Investment Program to prioritise high-demand skills.

Labor has also set an annual net migration target of 250,000, and proposes raising international student visa fees to A$2,000. While these measures aim to reduce pressure on housing and services, critics warn they could price out genuine talent and weaken Australia’s competitive edge in global education.

The Coalition’s Cuts: A Smaller, Leaner Migration System?

In contrast, the Coalition has announced it would slash permanent migration to 140,000 in 2025–26, gradually increasing it to 160,000. The more ambitious goal, though, is to cut net overseas migration by 100,000—a reduction that would likely require drastic cuts to student and skilled migration, even as it protects working holidaymakers and family visas.

This includes:

• Capping international student arrivals at 240,000 per year
• Introducing a A$5,000 non-refundable student visa fee for top-ranked universities
• Fast-tracking a review of the post-study work (485) visa to limit pathways to permanent residency

While these plans may appeal to voters concerned about housing and infrastructure strain, the economic cost could be significant—especially in sectors already grappling with skills shortages and labour gaps.

International Students: Investment or Liability?

Australia’s international education sector supports over 250,000 jobs and contributes tens of billions to the economy annually. But both major parties are tightening visa settings in response to soaring student numbers and housing market pressures.

Recent visa reforms already:

• Reduced the 485 visa’s age limit from 50 to 35
• Cut back post-study work rights (except for Indian students under a bilateral agreement)
• Raised English language requirements

These changes, while aimed at integrity, could undermine Australia’s global reputation as a top-tier study destination. Phil Honeywood from the International Education Association of Australia called recent Coalition proposals “anti-international student,” warning they send “the wrong signals about multicultural Australia.”

Higher education analyst Andrew Norton echoed that sentiment, saying abrupt policy swings create instability for students who made long-term decisions based on prior rules.

Skilled Workers and Regional Gaps

With aging demographics and a tight labour market, Australia increasingly relies on temporary and skilled migrants to fill key roles in healthcare, construction, and technology. Curtailing these pathways could stall growth just as businesses are starting to recover from pandemic-era disruptions.

The Coalition’s plan to revive an agriculture visa aims to address farm labour shortages, but past versions of such programs have raised concerns about exploitation and lack of oversight.

Meanwhile, smaller parties like People First and Sustainable Australia propose incentives for migrants to settle in regional areas—an idea that could support local economies while relieving pressure on big cities.

India: A Growing Stake in Australia’s Future

Despite the policy tightening, Australia remains a top destination for Indian students, who now make up a growing share of both enrolments and post-study visa holders. A March 2025 IDP Education survey found that Australia has overtaken the US and UK as the first-choice destination for Indian students.

“Families see Australia as a long-term investment,” said IDP’s Piyush Kumar. “Academic quality, work rights, and safety matter just as much as fees.”

The Economic Bottom Line

Regardless of who wins the election, experts agree: migration is not just a numbers game—it’s an economic engine.

Sudden cuts to student or skilled migration could:

• Weaken universities already under financial strain
• Leave businesses without the workforce they need
• Reduce income tax revenue and slow national growth

As Andrew Norton put it, “Policy should change gradually, not suddenly,” especially when it involves people who’ve already made plans and investments in Australia’s future.

Final Thoughts

With both major parties pursuing different visions of Australia’s migration future, voters aren’t just choosing a government—they’re choosing an economic strategy. The outcome will shape not only who gets to call Australia home, but also how the country competes, grows, and thrives in a rapidly changing world.

Stay informed with Growmore Immigration for the facts, not the fear. Migration is not just a number — it’s part of Australia’s future.