Australia's immigration changes: What Indian students, workers must know

The re-election of the Labor Party in Australia in a landslide victory in 2025 has cemented the government's intention to manage migration more tightly

Australia remains a strong draw for outbound Indians, with the Indian diaspora now the second-largest migrant community in the country after the United Kingdom.

 

The re-election of the Labor Party in a landslide victory in 2025 has cemented the government’s intention to manage migration more tightly. In the lead-up to the election, immigration policy was a sharp point of contention between opposition leader Peter Dutton and Prime Minister Anthony Albanese.

 

At the end of June 2023, there were 845,000 Indian-born residents living in Australia, according to the Department of Home Affairs. This figure more than doubled from 378,000 recorded on June 30, 2013. During 2023-24 alone, 49,848 Indians became permanent residents, up 21 per cent compared to the previous year.

 

However, shifts in visa rules and migration policy are beginning to reshape the picture for Indians seeking to study or work there.

 

Student visas and skilled employment see a sharp decline

 

While permanent residency numbers have risen, visas granted to Indian students more than halved over the past year. Only 50,516 student visas were issued during 2023-24, compared to 102,696 the year before. Temporary visas for skilled employment also fell, from 27,402 in 2022-23 to 18,397.

 

Temporary visa grants to Indians across categories declined steeply:

 

Visitor visas fell from 357,038 to 287,259

Student visas dropped from 102,696 to 50,516

Temporary skilled visas reduced from 27,402 to 18,397

Other short-term temporary visas decreased from 97,351 to 56,990

 

The overall number of temporary visas granted to Indians fell from 584,487 in 2022-23 to 413,162 in 2023-24.

 

Labour’s 10-year migration strategy

 

Anthony Albanese’s 10-year migration plan targets an annual net migration figure of 250,000 in 2024-25, compared to a record 510,000 the year before.

 

Net overseas migration is now forecast to:

 

Fall to 250,000 in 2024-25

Rise slightly to 255,000 in 2025-26

Fall again to 235,000 in 2026-27

 

Tougher visa processes and a focus on admitting high-skilled workers are part of the approach, alongside measures to apply stricter entry requirements for international students.

 

Visa fee hikes and reforms for international students

 

Australia had earlier attempted but failed to legislate caps on student intakes in 2024. Instead, administrative measures and fee increases are being used to control numbers.

 

From July 2024, the fee for an Australian student visa rose from AUD 710 to AUD 1,600. A further hike of AUD 400 has been proposed, which would push the application fee to AUD 2,000 from the 2025-26 financial year.

 

Top three source countries for international students in 2024 were:

 

China: 189,282 students (up from 166,420 in 2023)

India: 139,038 students (up from 126,487)

Nepal: 65,815 students (up from 62,379)

 

The total number of international students rose from 786,891 in 2023 to 853,045 in 2024, according to the Department of Education.

 

Mamta Shekhawat, founder of Gradding.com, told Business Standard, "In light of the election outcome, Australia increased international student visa charges from AUD 710 to AUD 1,600 to help control the growth of the education sector and net migration."

 

She added that stricter English language requirements and compliance measures for education providers have been introduced to “safeguard international students against exploitation and maintain standards for academic work”.

 

Further, Australia launched the Mobility Arrangement for Talented Early-Professionals Scheme, allowing 3,000 Indian graduates each year to live and work in Australia for up to two years.

 

Skilled worker reforms and future pathways

 

For skilled workers, the government reduced the required work experience under the Temporary Skill Shortage visa from two years to one year. A new National Innovation Visa is also expected to attract specialists in engineering, technology, and research.

 

However, visa application fees for foreign workers have been raised by 14.75 per cent, including those applying for the Temporary Graduate visa.

 

Shekhawat explained, “An IT professional with specialised cybersecurity skills might be in high demand, but the employer sponsoring their visa could face stricter requirements to prove that no qualified Australian worker is available.”

 

Permanent residency rules tightened

 

The Labor government has made it harder for international students to transition to permanent residency. Changes include:

 

Excluding students above 35 years from the Temporary Graduate visa programme

Shortening post-study work rights

Increasing financial capacity and English language requirements

 

The government is also diverting new immigrants towards regional towns to ease pressure on infrastructure in major cities.

 

Outlook for Indian students and migrants

 

Despite the tightening, experts believe Australia remains a desirable destination.

 

“The policies of the Labor government express a trend towards skill-based, targeted migration and balancing economic demand with social infrastructure capacity,” said Shekhawat.

 

Piyush Kumar, regional director for South Asia, Canada, and Latin America at IDP Education, told Business Standard, “Indian students and their families are cautious but not deterred. They are looking at the larger picture of the Labor party’s vision of sustainable migration, not exclusion.”

 

Kumar added, “Labor’s win may bring stability and a balanced approach toward student visas, with more clarity on work rights and pathways. The extended post-study work rights under the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA) have gone a long way to show the value that the Indian student community brings to the country.”

 

He advised students to apply early, ensure their documents and finances are in order, and select institutions carefully, saying, “Australia continues to be a top-tier destination for quality education and global career prospects despite policy tightening at the moment.”