Migration cuts could leave Canberra short of critical workers Chris Steel warns

ACT Treasurer Chris Steel has warned that the Coalition’s proposed migration cuts could leave Canberra short of workers in critical industries, including healthcare and aged care, while placing pressure on the Territory’s universities and vocational education sector.

Responding to the Coalition’s migration policy on Wednesday, October 7, Mr Steel rejected suggestions that most Canberrans would support cuts on the proposed scale.

“They want a sensible conversation about immigration, but they don’t want to see prices going up and a shortage of workers in critical industries like healthcare and aged care,” Mr Steel said.

The warning followed the Coalition’s announcement that it would reduce net overseas migration to 100,000 people a year during its first two years in government. The annual intake would then rise to about 160,000 by the fourth year.

The plan would also reduce the number of temporary visa holders by about 650,000 over four years, abolish Temporary Graduate Visas and limit international student commencements to 240,000 a year.

Some post-study pathways would remain available for PhD, health and education graduates, as well as students studying at regional universities.

Federal Opposition Leader Angus Taylor has argued that the proposed cuts would free up housing and ease pressure on frontline services. He said the policy would continue to support skilled migration in areas where Australia needs workers.

Mr Steel said reducing opportunities for international students to remain in Australia after graduation would have a “significant impact” on Canberra’s universities and vocational education and training sector.

Chief Minister Andrew Barr has also defended the role of skilled migration in the ACT economy, saying Canberra demonstrates the benefits migration brings to Australia.

“Canberra demonstrates the benefits that skilled migration brings to Australia. People come here from around the world to study, work, start businesses and build their lives, strengthening our economy and enriching our community,” Mr Barr said.

Mr Barr said the ACT Government’s submission to a parliamentary inquiry showed that a well-designed migration system was important for addressing workforce shortages, supporting major infrastructure projects and meeting rising demand in health, education, construction and technology.

International education is worth about $1.4 billion a year to the ACT and represents more than half of the Territory’s services exports. International students account for nearly half of Canberra’s approximately 40,000 tertiary students.

Mr Barr described international education as the ACT’s largest export industry and “one of our greatest economic success stories”.

“Maintaining Australia’s attractiveness as a destination for talented students and skilled workers is important for Canberra’s future prosperity,” he said.

The ACT Government has been lobbying both the Federal Government and the Legislative Assembly to ensure future migration and education policies reflect Canberra’s circumstances.

In September, Labor MLA Taimus Werner-Gibbings introduced a motion highlighting the role of international students and skilled migrants in filling workforce shortages and supporting Canberra’s universities, research sector and wider economy.

The motion called on the ACT Government to lobby the Commonwealth for policies that would strengthen the transition from study to skilled employment and support universities and employers in retaining graduates.

The ACT Government is due to report back to the Legislative Assembly by June 2027.

The Territory has also outlined its position in a submission to the Federal Government, describing migration as critical to Canberra’s knowledge-based economy and the delivery of essential services.

The submission warned that changes to international student policies should take account of jurisdictions such as the ACT, which rely on international education for economic growth as well as future workers.

The ACT Government also argued that the national Skilled Occupation List was not flexible enough to respond to emerging occupations and local workforce shortages.

It called for broader access to Designated Area Migration Agreements, faster recognition of overseas qualifications, improved settlement services and greater flexibility for states and territories to target workers in areas of need.

Since 2018, the ACT has used its Canberra Matrix to rank prospective skilled migrants for Territory nomination according to local skills requirements.

The Federal Government is pursuing its own migration reduction, with Home Affairs Minister Tony Burke outlining measures to bring net overseas migration down to 225,000 a year by 2028.

The measures include restrictions intended to prevent international students from switching between qualifications simply to extend their stay in Australia.

The ACT Government has not opposed tighter controls on the migration system. Its submission supports measures to prevent migrant exploitation and backs retaining the requirement for subclass 491 visa holders to live in regional Australia for three years before becoming eligible for permanent residency.

However, the Territory wants greater control over who comes to Canberra and who is able to remain.

“As the Commonwealth considers future migration settings, the ACT will continue to advocate for policies that support skilled migration, provide clear pathways for talented people to contribute to Australia, and give states and territories the flexibility to respond to local workforce needs,” Mr Barr said.

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