Australian State Governments and Business Sector Strongly Oppose Immigration Quota Reduction Plan
As the federal government considers significantly reducing immigration quotas, state government leaders and industry groups have expressed opposition, citing concerns about economic damage and worsening labor shortages. Particularly in construction, agriculture, and tourism sectors already facing severe overseas worker shortages, critics argue that arbitrary immigration cuts would make problem-solving more difficult.
State Government Warnings
South Australian Premier Peter Malinauskas strongly opposed the federal government's immigration reduction plan. In an ABC Radio interview, he argued that Australia faces severe labor shortages across all skill sectors and should view immigration as a solution to, not the cause of, housing supply problems.
Malinauskas stated, "Australia has a housing crisis, not an immigration crisis," explaining, "If there's a housing problem, we should focus on accepting the workers needed in the construction industry. We need electricians to build the homes we require."
Victorian Premier Ben Carroll also emphasized that immigration is "essential to Victoria's prosperity and future," stressing the importance of strong workforce growth across various sectors including medical professionals, workers, and farm employees. He added that this issue must be handled carefully, noting that international education is Victoria's largest service export.
Business Sector Concerns
Australian Chamber of Commerce and Industry CEO Andrew McKellar called for an "urgent review," criticizing the immigration discussion for being reduced to a myopic approach fixated solely on net overseas migration figures. He stated, "Arbitrary numbers should not become the problem, nor should this become a myopic and harmful approach that constrains the Australian economy."
Representatives from agriculture, hospitality, and tourism industries gathered at Parliament House in Canberra to convey concerns about recent changes to working holiday visas. National Farmers' Federation CEO Michael Guerin criticized, "The government made decisions without consultation, failing to understand the importance of working holiday makers and visas, which play a crucial role in food security."
Federal Government Dilemma
The Albanese government struggles to develop policies addressing voter concerns about high immigration rates, particularly rising numbers of temporary visa holders. Home Affairs Minister Tony Burke confirmed on August 17 that working holiday visa processing was being delayed to lower net overseas migration figures.
Opposition Liberal Party leader Angus Taylor argued that immigration numbers "should be capped based on housing supply, and should currently be below 170,000."
According to the Bureau of Statistics, net overseas migration in 2025 is approximately 301,000, higher than the pre-COVID-19 annual average of about 210,000.
Source
This article is based on reporting from The Guardian.
Sources
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