1. Skilled Migration Program Adjustments
The Australian government has allocated 185,000 places to the permanent migration program for the 2024–25 financial year, a slight decrease from the previous year’s 190,000 slots. Notably, employer-sponsored visas have increased to 44,000, while skilled independent visas have nearly halved to 16,900, reflecting a stricter focus on employer sponsorship and regional needs.
Additionally, from 1 July 2025, skilled visa income thresholds will be increased by 4.6%, aligning with changes to the annual Average Weekly Ordinary Time Earnings.
2. Introduction of the Skills in Demand Visa
To address critical workforce shortages, the Labor government introduced the Skills in Demand visa, featuring two streams: a high-paid specialist category and a core skills category for in-demand occupations. While the intended processing times are seven and 21 days respectively, current data shows significant delays, with only 50% of core stream applications processed within 43 days, and full 90% completion taking up to 84 days.
3. Changes Affecting International Students
The Australian government, under Education Minister Jason Clare, intends to maintain restrictions on international student numbers through the continued enforcement of Ministerial Direction 111. This policy slows offshore visa processing once universities approach predetermined enrollment targets, effectively acting as a cap after legislation to formally limit overseas student numbers stalled in the Senate.
Furthermore, the non-refundable fee for a student visa increased from $710 AUD to $1,600 AUD, making Australia’s visa fees among the highest in the developed world.
4. Opposition’s Stance on Immigration
Opposition Leader Peter Dutton has proposed reducing the permanent migration intake to 140,000 for 2025–26, with a gradual rise to 160,000 in subsequent years. The Coalition aims 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.
Despite these proposed cuts, the Coalition has announced that working holiday visas will not be affected by its plan to reduce net overseas migration. Senior Nationals senator Bridget McKenzie emphasized the need for backpackers to support regional industries like tourism, hospitality, and agriculture.
5. Transition to a Multi-Year Migration Planning Model
From 2025–26, the Migration Program will move to a multi-year planning model, extending the Program planning horizon to four years from the current twelve-month cycle. This approach aims to better align migration planning with longer-term infrastructure, housing, and services planning across all levels of government.
Conclusion
Australia’s immigration policies in 2025 reflect a dynamic landscape influenced by economic needs, political considerations, and global trends. Prospective migrants and stakeholders should stay informed about these developments to navigate the evolving immigration environment effectively.
