Major business groups and some Labor MPs have urged the government to pause its immigration overhaul and consult industry, as Home Affairs Minister Tony Burke prepares to outline changes to the migration system. The minister’s address to the National Press Club, originally scheduled for Thursday, was postponed, with a spokesperson saying “some elements of the speech would not be finalised” in time. The rescheduling would allow Prime Minister Anthony Albanese, who is on leave this week, to help sell any changes.
Business groups call for consultation
The Minerals Council of Australia called on the government to “suspend skilled migration changes and consult industry”, with chief executive Tania Constable saying the reforms would “make it harder for mining and other sectors”. The Australian Chamber of Commerce and Industry warned that changes such as trimming working holidaymakers or cutting family visas would be a “concern”, while Master Builders Australia chief Denita Wawn called for tradespeople to be prioritised, citing the datacentres boom.
Andrew McKellar, CEO of the Australian Chamber of Commerce and Industry, expressed alarm at the government’s approach, saying it was responding to a short-term political imperative. Innes Willox, CEO of Australian Industry Group, said visa decisions had blown out from “a few weeks to close to a year”.
Labour MPs urge caution
Some Labor MPs are anxious to avoid major changes to family and humanitarian visa categories, with one urging against “performative reductions” in migration in response to One Nation. Another MP said everyone should stop being “hysterical” about migration numbers, while a third said they would be concerned if the government reduced Australia’s humanitarian intake.
Other Labor sources characterised Burke’s changes as “tweaks” to existing settings, with some saying the media focus on the speech had been overegged and describing the changes as “surgical” adjustments. One Labor source expected the speech to focus on cutting permanent migration to 185,000 a year, a target the government has already cited in budget papers.
Energy minister Chris Bowen praised Burke’s work, saying immigration “must be properly calibrated”. Acting prime minister Richard Marles denied rumours of a disagreement with Burke.
Background: the July directive
In July, Burke issued a directive determining the order in which the department processes skilled and employer-sponsored visas, prioritising applications from migrant workers already in Australia over offshore applicants. Workers in defence and law enforcement are in the first of five tiers, followed by construction, healthcare and teaching applicants from Australia. Offshore applicants not in those fields have been effectively paused.
Jamie Lingham, CEO of Absolute Immigration Group, criticised the directive as a “blunt tool”, saying “the impact is huge and I don’t think everyone has grasped the reality of what’s happening”. Before the new rules, Home Affairs was working through a 12-month backlog of onshore skilled visa applications.
A separate directive issued in July paused the processing of Working Holiday Maker visas.
Political context
The government aims to reduce Net Overseas Migration (NOM) from 300,000 to 225,000 by 2028. NOM peaked at 556,000 after COVID-19 and has not fallen as fast as forecast. The most recent federal budget forecasts NOM falling from about 300,000 to 245,000 this financial year.
One Nation leader Pauline Hanson said she does not care if cuts to skilled migration negatively impact Australian businesses. “I don’t care what people think,” she said. “Whether it is going to affect their businesses, they’re not going to sell that many products, or you know, the universities because they’re not going to have that number of foreign students coming in here. I don’t care.” Her concern, she said, is for Australians who cannot get a roof over their head.
Hanson has called for reducing the permanent intake to 130,000 a year, a cap she indicated might be temporary, giving Australia a “breather”. One Nation also wants an eight-year waiting period for citizenship and welfare, and to refuse entry to migrants from nations “known to foster extremist ideologies” that are “incompatible with Australian values”, though it has not specified which countries, except for Gaza.
Senator Bragg of the Coalition was reportedly counselled by Opposition Leader Angus Taylor for suggesting the Coalition should bring NOM down to 180,000 a year. The Coalition has called for migration to be capped in line with housing construction but has not proposed a specific number.
The latest Guardian Essential poll found One Nation attracting 25% of the primary vote, down one point from June, while Labor’s indicative vote ticked up one point to 31% and the Coalition’s dropped to 22%.
Business leaders debate migration’s value
Business leaders have offered differing views on the role of migration. Flight Centre CEO Graham Turner said tourism is only marginally impacted by migration and that immigration is the main way Australia grows. He suggested a range of 200,000 to 300,000 a year is “reasonable”, noting that “we’re a country of migrants, and they contribute an enormous amount not only to our economy, but to our multicultural society”.
Esha Oberoi, founder of Leora Healthcare, said her business employs close to 800 employees, over 45 per cent on visas. She estimated one in six aged care workers are on a visa industry-wide, and said nearly 1.5 million people over 65 will enter aged care in the next decade, requiring 400,000 workers.
Brad Duggan, CEO of Metricon, said the bigger issue is the reliance on skilled workers for building work Australians do not want to do, noting that most plastering crews are from an Asian background and some of the best rendering crews are from Afghani backgrounds. He has been meeting with Australia’s housing minister and urged politicians to avoid emotive debates.
Ruslan Kogan, who arrived in Australia in 1989 with his parents and $90, pushed back against self-interested views from some business elements. He argued for a selective approach to immigration, prioritising skills like doctors, engineers, electricians, and scientists, and said “assimilation is very important”. He warned against turning Australia into a “shithole” and said the wrong kind of migrant is someone looking from a “what’s in it for me perspective”. Turner said the wrong type of migrant is someone who does not want to work and comes for social welfare benefits.
Asylum advocates weigh in
Jana Favero, deputy chief executive of the Asylum Seeker Resource Centre, warned against demonising migrants to win back support from Pauline Hanson. Shadow home affairs minister Jonno Duniam said Labor had caused “more chaos and confusion” by delaying the speech.
What next?
Burke’s office would not confirm media reports about the specific measures, which could include tougher family visa rules, capping backpacker numbers, or restrictions on asylum seekers. Government sources told Guardian Australia the policy changes would not push NOM lower than existing targets. A spokesperson said the address would likely take place in the next fortnight and “deal with the migration system as a whole”.