This article is from the Australian Property Journal archive
THE Albanese government will halve the migration intake as part of major reforms to the system aimed at fixing the current housing crisis and improving housing affordability.
The announcement comes just a day after Treasurer Jim Chalmers unveiled higher fees and taxes for foreign investors.
Migration Strategy followed a review into the migration system led by Dr Martin Parkinson, who found it was a deliberate decision to neglect the system” and that it was “so badly broken” it required a “10-year rebuild”.
Home Affairs Minister Claire O’Neil said the new Migration Strategy will bring migration back to sustainable levels, ensuring we have the skills we need for the future and, ultimately, make sure the system is working in the interests of all Australians.
“Our Migration Strategy is a bold plan to get migration working again for all Australians.
“The Strategy helps us get the skills we need – in healthcare, for our net zero transition and in our digital economy.
“We are acting to design out migrant worker exploitation from the system so we can protect wages and conditions for migrants and locals alike.
“This Strategy is about building back integrity into the system, with Treasury forecasts showing that migration is expected to decline substantially over the next financial year,” said O’Neil.
Australia’s net migration level peaked last financial year at 510,000 and is forecast to return to normal levels, to 375,000 in 2024 and 250,000 in 2025, under the new strategy.
The government said without the new strategy levels, levels would remain elevated with 440,000 expected in 2024 and 305,000 in 2025.
Minister for Skills & Training Brendan O’Connor said the strategy will also prevent international students and graduates from exploitation by unscrupulous operators.
“We put a high value on ensuring international students are welcomed, safe and supported and that their contribution is recognised and celebrated in Australia.”
Minister for Education Jason Clare said international education is a key national asset.
“It is the biggest export we don’t dig out of the ground.
“That’s why strengthening the integrity of our international education sector is so important,”
Minister for Immigration, Citizenship and Multicultural Affairs Andrew Giles said a strong tripartite approach has informed the Migration Strategy, working with the business community and union movement to secure growth and fairness.
“After a decade of neglect, all workers will be better off as visa rules that prevent people speaking up about mistreatment are reformed,” said Giles.
Building and construction labour shortages remain
The Master Builders Australia welcomed the focus on filling skills shortages but said it needed further work on the trades required to tackle the housing crisis.
CEO Denita Wawn said labour shortages remain the biggest source of cost pressure and disruption for the building and construction industry.
“We need skilled migrants now more than ever in the building and construction industry if we are going to meet the Housing Accord and net zero targets.
“With a need of half a million new workers in the next 3-5 years, the domestic workforce simply cannot meet these targets in the short-term and skilled migration will play a key role in plugging that gap.
“The government is heading in the right direction and we look forward to continuing to work closely with them to tackle challenges faced in our industry,” said Wawn.
Housing crisis is a result of government policy
Meanwhile social housing campaign group Everybody’s Home spokesperson Maiy Azize said the government is using migration as cover for Australia’s housing crisis.
“The real cause is decades of government policy that has pushed up the cost of housing.
“Governments have given handouts to investors, allowed unlimited rent increases, and stopped building homes for the people who need them.
“That’s why housing is so unfair, so unequal and so unaffordable.
“Overseas migration was low during the pandemic years, and rents went up not down. And even though we have more homes than ever per person, housing costs keep surging,”
“Instead of pretending the housing crisis has been imported into Australia, the government needs to take responsibility for the causes of the problem – and start fixing them.
“To make housing affordable again, the government needs to go back to supplying housing directly and end unfair policies like negative gearing and capital gains tax exemptions that push up housing costs. Government policy created the housing crisis. Only government action can fix it.” Azize said.
Concern over student reduction
The Student Accommodation Council has expressed concern over the significant reduction in international student numbers.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the sector contributes $40 billion to the economy.
“International students spend roughly $4,000 per month in our economy, and otherwise attract 300,000 visitors each year who visit them and drive our tourism numbers.
“A solution to housing international students without having them compete for beds in the broader rental market is hiding in plain sight but needs the support of state and territory governments,” Kandelaars said.
“State planning and tax systems have either ignored the benefits of purpose-built student accommodation (PBSA) or used it as a cash cow to prop up budgets in massive structural deficit. PBSA plays a crucial role in providing safe, high amenity housing for students who are a vital source of life for our CBDs.
“The sector ensures a strong pipeline of beds that take nearly 80,000 people each year out of the wider rental market – reducing demand and easing affordability,” he added.
“In a globally competitive environment for the best and brightest, we need to cultivate the brainpower essential for driving Australia’s future prosperity and preserving our status as a destination of choice for international students,” Kandelaars said.
