Australia immigration: Oppn eyes investor ban, 25% permanent migration cut

"Labour has opened the migration floodgates," said Australia's opposition parties

Australia’s upcoming May 2025 federal election could bring major changes for Indian migrants, with the opposition Coalition proposing strict migration and education reforms. If elected, the party has pledged to reduce permanent migration by 25% and impose stricter limits on international students at metropolitan universities, potentially disrupting the aspirations of many Indians looking to settle in Australia.

 

“I want no Australian to be left wondering what the Coalition stands for. So today, I will outline our key priorities to get Australia back on track,” said Peter Dutton, Coalition leader, on January 12 during a speech in the Victorian electorate of Chisholm.

 

Dutton announced plans to cut Australia’s permanent migration intake from 185,000 to 140,000 annually for the next two years. The intake would then rise to 150,000 in year three and 160,000 in year four.  

 

“Labor has opened the migration floodgates. A record one million migrants have arrived in Labor’s first two years. That’s 70% more than in any previous two-year period. It’s put pressure on housing, infrastructure and services. With only 350,000 homes built over the same period, demand has far outstripped supply,” said Dutton.  

 

He added: “The Coalition will take action. We will impose a two-year ban on foreign investors and temporary residents purchasing existing Australian homes. We will work with major metropolitan universities to set stricter caps on foreign students to relieve stress on city rental markets. Using these levers, we will free up more than 100,000 homes over five years.”

 

Declining student visa arrivals

 

Whether the opposition wins or not, the fact is that the number of international students and job seekers is already dwindling in Australia. The Department of Home Affairs reported a 25% drop in student visa arrivals in 2023/24, falling to 207,000 from 278,000 the previous year. Despite the decline, international students continue to represent the largest group of new migrants, accounting for 39.5% of Australia’s net overseas migration—the lowest proportion since 2016/17, excluding the pandemic period.  

 

India remains a key contributor to Australia’s international student population. In 2023, 746,080 foreign students were studying in Australia, including:  

159,485 from China  

122,391 from India  

60,258 from Nepal  

 

However, reports have raised concerns about motivations, particularly among students from South Asia, suggesting some may be using the visa system primarily for work.  

 

“Australia needs to manage its international student intake to balance educational quality with the needs of the economy,” said Clare O’Neil, Minister for Home Affairs, in December 2024.

 

Post-pandemic migration surge

 

Post-pandemic immigration levels have surged, with net overseas migration for 2024/25 estimated at 340,000, up from the 260,000 forecast in May 2024. Meanwhile, the Labor government faces pressure to address public concerns linking high migration to housing shortages and infrastructure stress.

 

With over 860,000 people currently holding student or post-study work visas, making up more than 3% of the population, Australia’s lucrative education sector remains critical. The election in May 2025 is set to keep immigration policy at the forefront of political debate.