This is becoming really tiring. Australia’s migration debate and responses to it have been shambolic.
Australia is in danger of turning one of our greatest social and economic strengths into a case study in policy self-harm.
Reports that the Australian Government is considering further restrictions on migration, with measures to further limit international students, temporary workers and migration pathways have come after several years of almost continuous changes to student visa settings. Continuous changes like those we’ve seen are a sign of confusion in the marketplace and they erode confidence.
The objective of maintaining integrity in our migration system is, without question, a critical one. But Australia is seeking integrity and we’re getting instability.
International education is one of Australia’s great success stories. A great social success, supporting communities, businesses across education, accommodation, hospitality, retail, transport and thousands of others across the economy.
Yet the brakes are now firmly applied. At a time when we need businesses to invest in economic growth
International student visas granted to primary applicants (i.e. the actual student) for the year to 30 June 2026 for those applying from offshore, were the lowest in more than a decade (excluding the pandemic of course). For students in the skills training sector, it was nearly one-third of the number granted in 2006-07.
International students generate economic activity that contributes around 2% of Australia’s GDP, and they have a very broad economic footprint as well as a broad and positive social footprint. Their average weekly consumption is roughly twice that of the domestic resident population.
So quick, knee-jerk moves to cut them off from entering Australia is actually an ill considered decision to cut Australia’s social and economic growth.
This is bigger than education providers too. Reports of another migration crackdown should concern Australian business.
Australia faces persistent skills shortages, an enormous infrastructure pipeline, an ageing population and intense international competition for skilled workers. Business leaders are already warning that further migration restrictions risk making it harder to secure the people needed to deliver projects, grow businesses and generate exports.
The reputational cost of Australia’s current migration policy thought bubbles cannot be measured neatly in a Budget either.
International students, skilled migrants and their families make decisions years in advance. They compare nations like Australia with Canada, the United Kingdom, the United States, New Zealand and increasingly Asia and Europe. Australia’s brand is fact become one of uncertainty and instability.
If prospective students and skilled workers conclude that Australia’s rules are expensive, unpredictable and liable to change, they will go elsewhere.
Australia absolutely must take action on abuse of the visa system, shut down non genuine operators and ensure migration serves Australia’s interests. Australian businesses and quality education providers have as much interest in system integrity as government does.
But good regulation targets bad actors. It is not indiscriminate or designed to destabilise entire industries.
Policy confusion has a price, and Australian businesses, workers and communities are going to have to pay it.
Felix Pirie is the Chief Executive Officer of ITECA.
The Koala thanks Felix and ITECA for permission to publish this piece, which first appeared in the ITECA Newsletter (31/8/26).
