Australia to Continue Skilled Migration Focus, Tighten International Student Visa Laws

Australia is set to maintain its strong emphasis on skilled migration while implementing stricter rules for international student visas, as part of a broader migration strategy by the Albanese government. These measures are designed to better manage population growth, protect the integrity of the visa system, and address labour market needs.

The Department of Home Affairs has confirmed that the permanent Migration Program for 2024–25 will remain at 185,000 places. Significantly, around 70 per cent of these places are allocated to the Skill stream, aimed at addressing persistent skills shortages across vital sectors such as healthcare, infrastructure, and technology. The Employer Sponsored visa category is being expanded, with places increasing from 36,825 in 2023–24 to 44,000 in the 2024–25 program year. This reaffirms Australia’s long-term objective to attract global talent and ensure businesses have access to the workers they need.

To further support this policy, the government will raise the income threshold for skilled visa applicants by 4.6 per cent starting from 1 July 2025. This adjustment ensures skilled migrants are offered fair remuneration and helps maintain the credibility of the migration system by aligning income expectations with local labour market standards.

In contrast to the welcoming posture toward skilled migrants, the government is taking a more cautious approach with international student visas. A series of new regulations have been introduced in response to concerns about overcrowding, infrastructure stress, and misuse of student visa pathways. One of the most impactful changes is the increase in visa application fees (refer to Page 15 Section:- Student Visa, pointer 53), which rose from AUD 710 to AUD 1,600 in July 2024, with an additional rise to AUD 2,000 planned from July 2025.

To control the volume of international students, enrolment caps are being introduced. For 2025, the cap has been set at 270,000 new student places, including 145,000 for universities and 95,000 for vocational education. These changes are intended to better align education exports with housing and economic capacities while reinforcing Australia’s high education standards.

A key element of the migration strategy is addressing the issue of ‘visa hopping’, where individuals exploit onshore visa transitions to prolong their stay. From July 2024, foreign nationals on visitor or temporary graduate visas will no longer be eligible to apply for a student visa while remaining in Australia. This step aims to close a loophole that has allowed some individuals to remain indefinitely by switching visa categories without leaving the country.

Another important move is the government’s effort to shut down non-genuine education providers, commonly referred to as ‘ghost colleges’. These institutions often exploit visa rules and provide low-quality education or none. As part of a nationwide compliance push, over 150 such providers have had their registration revoked. This is a significant step towards restoring confidence in the international education sector and ensuring it operates in good faith.

These policy changes are particularly significant for the Indian diaspora in Australia. As of June 2023, more than 845,000 Indian-born individuals were residing in the country, making them the second-largest migrant group. However, Indian nationals have been affected by the tightened visa policies. In 2023–24, only 50,516 student visas were granted to Indians, a sharp drop from 102,696 the previous year. Similarly, temporary skilled employment visas for Indian natives decreased from 27,402 to 18,397 during the same period.

These shifts reflect the government’s attempt to balance the economic benefits of migration with community expectations around infrastructure, housing, and public services. The skilled migration program is being safeguarded and enhanced to ensure the Australian workforce benefits from global expertise. Meanwhile, the international education system is being refined to maintain its reputation for quality and integrity.

Australia is also aiming to reduce overall migration numbers to more sustainable levels. After net overseas migration peaked at 510,000 in 2022–23, the government has laid out plans to reduce this figure to 250,000 in 2024–25, with a further reduction to 235,000 by 2026–27. These targets are part of a recalibrated immigration policy intended to secure long-term benefits without placing undue strain on public infrastructure and housing.

For migrants and international students alike, these changes signal a new phase in Australia’s immigration landscape, one focused on integrity, sustainability, and genuine contributions to the nation’s growth.