Markets 
Australia’s economic success story, marked by the longest period of economic growth in the developed world, has been fuelled in no small part by migrants in our key industries, from offices and hospitals to farms and mines. But amid a rise of cost-of-living pressures, housing shortages and infrastructure logjams, a large portion of the electorate has succumbed to a familiar kneejerk response: blaming migrants.
One Nation predictably seeded and fuelled this narrative to its own advantage. The Albanese government, in turn, has failed to challenge it and sell the value of migration to the public. Perhaps more importantly, it lost control of the conversation, which has descended into political noise and growing nativism.
Against this supercharged political backdrop, Home Affairs Minister Tony Burke announced a long-awaited suite of reforms designed to tighten a migration system that has, in some areas, become overly permissive.
With a target of lowering net overseas migration by 16 per cent to 245,000 this financial year and 225,000 by 2027-28, there are measures to curb “visa hopping”, new restrictions on international student visa holders bringing in family members, stricter conditions on visitor visas, and a crackdown on rogue migration agents.
“If you want to come on a temporary basis to Australia, apply for a temporary visa,” Burke said. “If you want to come to Australia permanently, apply for a permanent visa, and if you no longer have a valid visa, you should leave Australia.”
Restoring integrity to a system in which Australia’s guest worker economy has ballooned to 3 million temporary migrants is necessary. But it should not play into political scapegoating or impede gateways to the migrants Australia needs.
Make no mistake: cutting immigration will not solve inflationary issues like fuel prices and interest rates, or ease pressure on our ageing power grid struggling to keep pace with data centres. It could, however, cause real damage to important sectors of our economy at a time of historically low unemployment, triggering more collateral downstream.
International education, for example, can’t be reduced to a migrational loophole: it’s a $54 billion export market, with revenue from overseas students offsetting public funding shortfalls and contributing to research and employment.
In a globally competitive market, universities are rightfully concerned the new visa restrictions will damage Australia’s reputation as an attractive destination, prompt prospective students to look elsewhere, shrink the industry and cost jobs.
Regional agriculture and hospitality, which rely heavily on temporary workers like backpackers to sustain operations, will also be hit hard. The National Farmers’ Federation warns the changes will hurt primary producers and force up grocery prices.
As the Business Council of Australia points out, almost one in three occupations in Australia is currently short of workers. A blanket restriction risks starving essential pipelines that should be prioritised in industries such as farming, healthcare and construction.
Worryingly, the expected economic impact of the reforms, including on wages, is unknown. Employment Minister Amanda Rishworth repeatedly dodged questioning on whether the government had undertaken modelling.
Four years into office, the government cannot continue to blame systemic flaws on inherited policy. While post-COVID migration surges were real, it was slow to act on fake degree rorts, neglected enforcement and, perhaps most crucially, failed to wrestle the narrative from One Nation and effectively communicate the positive economic case for migration.
Abandoning its role as a champion of business in a bid to fend off One Nation, the Coalition’s stance is opportunistic: it has attacked the government’s figures and promised deeper cuts without revealing which legislation it would support, or details of an alternative.
One Nation’s proposed migration cuts are so deep the expert consensus is they’d plunge Australia into recession.
It was former prime minister John Howard’s government that first built the system we have today, based on the premise of finding workers to fill jobs as quickly and cheaply as possible. In an interview with the Herald, Howard defends Australia’s immigration policy as a great success and recognises the contribution of migrants.
He suggests both major parties “don’t pay too much attention” to One Nation.
He has a point. Australia needs a migration policy grounded in economic reality rather than political dog-whistling.
Most Australians would recoil from ICE-style deportations but there’s scope between that and maintaining the status quo. A good system requires firm enforcement but also clear and sustainable pathways for the skilled migrants the nation genuinely requires. Tightening borders must not come at the expense of key industries, our long-term economic prosperity or national character.
Jordan Baker sends a newsletter to subscribers each week. Sign up to receive her Note from the Editor.
The Herald’s View – Since the Herald was first published in 1831, the editorial team has believed it important to express a considered view on the issues of the day for readers, always putting the public interest first.From our partners
Read the full article here
