Australia’s conservative opposition coalition has proposed the “biggest cut to immigration” in the nation’s history, targeting temporary and humanitarian visas while prioritising skilled workers. The plan, announced on Tuesday, October 6, 2026, by Opposition Leader Angus Taylor, aims to reduce annual net overseas migration to 100,000 for two years, a significant reduction from its current rate.
The Liberal-National Coalition’s migration policy would cut 650,000 temporary visas over four years. This proposal goes further than the centre-left Labor government’s cuts announced last month, which aim to bring annual net migration down to 225,000 by 2028.
Opposition’s Sweeping Proposal
Under the Coalition’s plan, humanitarian visa places would be halved to 10,000. It would also cut international student enrollment to 240,000 and abolish Australia’s temporary graduate visa programme, which currently allows students to live, study, and work in the country after graduation. Conversely, the Coalition pledged to increase temporary skilled visas by 100,000 and clear a backlog of construction worker visa applications.
Opposition Leader Angus Taylor stated that the proposal would be “putting Australia first and it will be putting our national interest first.” He added, “The net overseas migration numbers will be 100,000 year one, 100,000 year two, going to 160,000 in year four. That will take pressure off roads, off schools, off infrastructure, off houses, and that will ensure that our country has the breathing space it needs.”
The sweeping proposal comes amid growing anti-immigration sentiment in Australia, driven by high living costs and housing shortages. The Coalition has also faced pressure from the far-right, anti-immigration One Nation party, which has outpolled it in recent surveys and pledged even deeper cuts to temporary migration.
Government’s Current Reforms and Migration Trends
The current Labor government, led by Prime Minister Anthony Albanese, has also been implementing reforms to its immigration programme. On September 17, 2026, the government announced measures aimed at reducing net overseas migration to 245,000 in 2026-27 and 225,000 from 2027-28 onwards. Australia’s Home Affairs and Immigration Minister Tony Burke announced on October 6, 2026, that these reforms target temporary, demand-driven visas, particularly student, graduate, visitor, and working holiday visas.
Migration to Australia surged after the country reopened its borders in February 2022 following nearly two years of COVID-19 closures. This increase was largely driven by international students, backpackers, and temporary workers. Net overseas migration reached a record high of 555,800 in September 2023. However, numbers have been declining over the past two years, with net overseas migration standing at 306,000 in the year to June 30, 2025, down from 429,000 the previous year. By March 2026, the figure was 292,100.
Impact on Nepali Students and Residents
These proposed and ongoing changes to Australia’s immigration policy are expected to have a significant impact on Nepali students and residents. As of June 2025, there were 213,580 Nepal-born residents in Australia, a more than five-fold increase in a decade. By early 2026, approximately 60,000 Nepali students were enrolled in Australian institutions, accounting for about 9 percent of Australia’s total international student population.
Australia moved Nepal to Assessment Level 3 for student visa processing on January 8, 2026, which has led to stricter visa application rules for Nepali students. These include higher English language requirements, increased financial capacity thresholds, and greater scrutiny of fraudulent enrollments. The visa rejection rate for Nepali students was reported to be approximately 64 percent in 2026.
New regulations also mean Nepali students can no longer bring their spouses or children with them, as Nepal is not among the exempted Pacific and ASEAN nations. Visa application fees have also increased, with student visa fees reaching AUD 2,000 on July 1, 2025, and temporary graduate visa (Subclass 485) fees increasing to AUD 4,600 on March 1, 2026. Nepali students must now demonstrate living expenses of at least AUD 29,710 for one year.
The Nepali Embassy in Canberra has stated it cannot provide information on Australian visas, advising applicants to contact the immigration department of the Australian High Commission in New Delhi. Nepali residents in Australia have also urged the embassy to convey their concerns to the Nepali government regarding the effective implementation of dual citizenship laws.
What Happens Next
Australia’s next general election is not due until 2028. The timeline for parliamentary debate or implementation of the Liberal-National Coalition’s immigration policy remains unclear. Meanwhile, the Labor government continues to implement its own reforms, including stricter rules for student visa holders from October 2, 2026, which restrict in-country applications for new student visas unless enrolled in a higher-level course.
The long-term economic impact of Australia’s changing immigration policy on Nepal, particularly concerning remittance flows, is not yet fully analysed. Furthermore, the official response from the Nepali government to the request for dual citizenship law implementation by the Nepali community in Australia remains unclear. The extent of consensus or disagreement between Australia’s Labor government and the opposition coalition on immigration policy will also unfold in the coming months.
