'Home, not a hotel': Australia vows 'biggest immigration cut' in history - What it means for Indians

Australia's conservative opposition has unveiled plans for what it calls the country's "biggest cut to immigration" in history, with the Coalition proposing to slash net overseas migration to 100,000 a year for its first two years in government. The proposal could have significant implications for Indians, who have recently emerged as Australia's largest overseas-born population and remain the country's biggest source of temporary skilled migrants.

Opposition Leader Angus Taylor said the Coalition would reduce net overseas migration to 100,000 in each of the first two years if it wins the next federal election before increasing the figure to 130,000 in the third year and 160,000 in the fourth. The plan would also reduce temporary visa numbers by about 650,000 over four years.

Australia recorded 292,100 net overseas migrants in the year to March 2026, according to the Australian Bureau of Statistics, meaning the proposed 100,000 target would represent a substantial reduction from current levels. "Australia should be a home, not a hotel," Taylor said while announcing the policy.

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Indians now Australia's largest overseas-born population

The proposed immigration cuts come at a significant moment for the Indian community in Australia. According to the Australian Bureau of Statistics, 971,020 people born in India were living in Australia on June 30, 2025, narrowly overtaking the England-born population of 970,950. It was the first time India had become Australia's largest overseas-born population.

The number of India-born residents increased from about 449,000 in 2015 to 971,020 in 2025, an increase of roughly 522,000 people. The Indian-born population accounted for 3.5 per cent of Australia's total population and about 11 per cent of its overseas-born population in 2025.

Why Indian students and skilled workers could be affected

The Coalition's proposal targets several temporary migration pathways, including international education and temporary graduate visas. It plans to cap international student commencements at 240,000 a year, restrict most dependants accompanying students and scrap most temporary graduate visas, with limited exceptions for areas such as health, education, PhD graduates and regional universities. That could be significant for Indian students, who form one of the largest international student communities in Australia.

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At the same time, the Coalition says it wants to shift migration towards skilled workers, particularly in areas such as construction. It has proposed increasing temporary skilled migration while prioritising workers based on factors including skills and economic contribution.

India is already the largest source of primary temporary skilled visa grants. Home Affairs data shows 6,220 primary temporary skilled visas were granted to Indian citizens in the six months to December 31, 2025, accounting for 18.1 per cent of the total. That was a 16.2 per cent increase from the corresponding period a year earlier.

Australia is tightening migration rules already

The Coalition's announcement comes as Australia's Labour government is also tightening migration rules. New student visa integrity measures that took effect on October 2 restrict onshore student visa applications and limit the ability of most students to bring family members. The government has also targeted "visa hopping" and migration agents for exploiting the system.

The Labour government is targeting net overseas migration of 245,000 for the current financial year and 225,000 for 2027-28.