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Australia Tightens Migration Rules to Ease Housing Shortage, Minister Says

Australia Tightens Migration Rules to Ease Housing Shortage, Minister Says
Home Affairs Minister Tony Burke told the National Press Club in Canberra that immigration was "fundamentally a strength" for Australia, but accepted that housing pressures required changes to policy (DAVID GRAY)

Home Affairs Minister Tony Burke announced tighter migration controls to help ease Australia's housing shortage, targeting "visa hopping," student course-switching, working-holiday extensions and overstayers. Net overseas migration fell from a 2022 peak of 538,000 to 292,100 in the year to March, with the government aiming for 225,000 next year. Measures include limits on family members joining students, a ballot for rural working-holiday extensions, a two-week rule for overstayers and prioritising applicants with construction skills.

Australia will reduce net migration by tightening controls on "visa hopping," restricting some student and working-holiday arrangements and stepping up enforcement against overstayers, Home Affairs Minister Tony Burke said at the National Press Club in Canberra.

What the Government Announced

Burke said immigration remains "fundamentally a strength" for Australia but that current housing pressures require a temporary easing of arrivals so supply can catch up. The measures aim to slow certain pathways used to extend stays while prioritising migrants with skills in construction and housing.

Key Measures

  • New limits on family members joining international students and tighter rules on students switching courses to extend their stay.
  • Working-holiday makers in designated rural areas will enter a ballot for second- or third-year stays; just 5,000 third-year visas will be available.
  • Backloged UK working-holiday visa applications (a record 80,000 lodged) will continue to be processed more slowly while discussions with the UK continue.
  • Temporary visitor visas for family members of Australians will include "no further stay" conditions to prevent extensions.
  • Priority will be given to visa applicants with construction and housing-related skills.
  • Reintroduction of a two-week rule for visa overstayers: individuals given two weeks to leave or face detention and deportation, supported by 100 new compliance officers and 250 additional detention beds.

Migration Data And Targets

Net overseas migration—net gains or losses from people moving into and out of Australia—hit a post-Covid peak of 538,000 in 2022 after borders reopened. It fell to 292,100 in the year to March, and the government is targeting a further reduction to 225,000 next year.

Political Context And Reactions

Burke denied the changes were simply a response to pressure from the right-wing One Nation party, which campaigned this year on steep migration cuts. Business groups have warned that reducing migration too sharply could harm the economy. Burke said Australians wanted assurance the government was "taking control" of migration while "being decent about it."

"We need immigration to soften enough that housing has a chance to catch up," Burke said, emphasising migrants are not the cause of the housing shortage.

Scale And Impact

International students are the largest group of arrivals, with about 753,000 enrolled in Australia—mostly from China and India. A third of Australia’s resident population of 27.6 million was born overseas, according to the latest census.

The announced changes are intended to rebalance short-term pressures on housing while keeping skilled migration to sectors that expand housing supply. Officials say enforcement steps are firm but will not resemble the hardline approaches seen in some other countries.

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Australia Tightens Migration Rules to Ease Housing Shortage, Minister Says - CRBC News