Coalition Immigration Policy Raises Concerns Over India FTA Violation

Graduate Visa Abolition Plan

On October 6, Coalition's Angus Taylor announced plans to reduce net overseas migration to 100,000 in the first two years of a Coalition government and to 160,000 in the fourth year. The plan includes abolishing temporary post-graduate visas.

Currently issued at 271,200 per year, graduate visas would be reduced to 10,000 by 2031-32. Shadow Home Affairs Minister James Paterson stated that graduates wanting to remain in Australia would need to return home and apply for a separate temporary visa.

Paterson explained there would be a four-year transition period before abolishing the graduate visa, and workers in priority sectors such as health and education, as well as some regional workers, would be able to remain.

India FTA Violation Concerns

Phil Honeywood, Chief Executive of the International Education Association of Australia, pointed out that the plan could violate the free trade agreement with India.

A letter sent in April 2022 by then-Liberal Trade Minister Dan Tehan contained Australia's commitment to maintain post-graduation temporary stay, study, and work opportunities. Trade diploma graduates could stay up to 18 months, bachelor's graduates up to 2 years, STEM bachelor's and master's graduates up to 3 years, and doctoral graduates up to 4 years.

Honeywood noted the irony that the Coalition was now targeting the special provisions they themselves negotiated with India. India is the second-largest international student cohort in Australia after China.

A Coalition spokesperson told the Guardian there would be no treaty breach and that alternative visa pathways would be established for some graduates. The spokesperson explained that treaty obligations require providing some students with short-term temporary visa pathways after graduation, and that Australia decides which visas to offer.

Education Sector Concerns

Honeywood warned that Australia would lose skilled workers in key sectors through this policy. He pointed out that Australia would collect degree costs from excellent young people, then send them home without the opportunity to utilize their skills in high-demand fields such as health, IT, and engineering.

Luke Sheehy, Chief Executive of Universities Australia, stated that the policy risks causing lasting damage to Australia's higher education sector and economy. Abolishing the temporary graduate program could make Australia less attractive to students and reduce competitiveness in securing outstanding students and graduates.

Julian Hill, Assistant Minister for International Education, said all comparable countries offer competitive post-graduation work opportunities. He criticized that abolishing graduate visas would drive excellent students away from Australia and undermine Australia's fourth-largest export.

The Coalition plan reduces international student commencements to 240,000, lower than the current planned level of 295,000. Hill's office stated that this year's commencements are expected to be 250,000.