Business sector blasts coalition’s migration policy

Allanah Sciberras, Lucinda Garbutt-Young and Jacob Shteyman | October 7, 2026

Sweeping cuts to migration proposed by the coalition have been blasted by the business sector, while farming leaders back the approach that would bring workers back to the regions.

Under a future coalition government, net overseas migration would be reduced from its annual level of nearly 300,000 people to about 100,000 in the first year.

The overhaul sparked anger across the business sector on Tuesday, with the Australian Chamber of Commerce and Industry warning the cuts would hit economic growth.

Australia’s temporary visa holders would be reduced by 650,000 people over four years, while temporary graduate visas would be scrapped under the changes. 

Student visa numbers would also be reduced from 528,000 to 456,000.

“The coalition say that their policy is the largest cut in migration in Australia’s history. That is not a good thing and that’s not what we need at this point in time,” ACCI chief executive Andrew McKellar told reporters on Tuesday.

“The reality is that if we are going to cut levels of migration to the extent that the coalition says that it will, that will undermine the growth rate of the Australian economy and our future growth potential.”

Opposition Leader Angus Taylor said his policy represented the biggest cut to migration in Australia’s history, although his target is still higher than the net negative migration during COVID and One Nation’s goal of 130,000.

The coalition’s plan echoes parts of One Nation’s proposal, including requiring most visa applications to be made offshore in an attempt to curtail so-called “visa hopping”.

As a result, bridging visas would be virtually eliminated.

Health and aged care workers would be put on a transition arrangement, allowing them to stay while their new visas are processed, Mr Taylor told ABC’s 7:30. 

A new skilled visa class for major projects, capped at 15,000 a year, and a new agriculture visa would be introduced, he said.

The move was welcomed by the National Farmers’ Federation, which said a “fit-for-purpose migration system” was essential to the nation’s food and fibre production, and regional communities.

“The NFF has long called for workforce reform, including a purpose-built agricultural visa. We welcome the coalition’s commitment to introduce one from 2030,” president Hamish McIntyre said.

“Agriculture needs workers with different skills, in different places and at different times of the year.”

Others worry the cuts to student visa numbers will hurt Australia’s workforce.

“(We) are a little concerned about what impact the significant decline in temporary visa holders will have on the unskilled labour requirements of the building and construction industry,” Master Builders Australia chief executive Denita Wawn said on Tuesday.

“We know many international students, for example, in the hours that they are allowed to work, will work in building and construction…. we’ve got to look more at the impact.”

That backlash will be continue to cause problems for the coalition, migration policy expert Abul Rizvi told AAP.

“They may well go to the election with this policy, but if the labour market is still strong six months after the election, they will roll over,” he said.

“Ultimately, the pressure from the business community will win.”