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Migration Institute warns Coalition visa cuts would leave critical sectors under-staffed

Oct 9, 2026
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Migration Institute warns Coalition visa cuts would leave critical sectors under-staffed
In a 5-minute interview on ABC Radio National Breakfast at 6:30 am on 9 October, Peter van Vliet, CEO of the Migration Institute of Australia, argued that the Opposition’s proposal to remove 650,000 temporary visas could “hobble” aged-care, construction and IT projects already battling skills gaps. Van Vliet noted that temporary visa holders comprise up to 15 per cent of Australia’s workforce and are concentrated in roles where domestic supply is limited. He cautioned that without a phased transition and employer consultation, sudden cuts would drive wage inflation, delay infrastructure delivery and undermine the government’s push to triple housing construction. The institute is urging both major parties to retain flexible pathways such as the Skills-in-Demand (SID) visa – due to replace the Temporary Skills Shortage subclass 482 in mid-2027 – and to expand regional concession schemes rather than impose blunt caps. For global-mobility programmes the comments reinforce the need to scenario-plan for visa-class reductions, longer processing times and higher prevailing-salary thresholds already announced for July 2027. Employers should accelerate talent pipeline reviews, lodge nominations early where feasible, and budget for additional compliance overheads (training levies, audits, salary tracking). The interview also emphasised reputational stakes: van Vliet warned that unpredictable policy swings could deter international students and skilled professionals, pushing them to competing destinations such as Canada’s Express Entry or the UK’s new Innovator Founder route. Multinationals may need to update assignment-location comparisons to reflect evolving visa access and cost of mobility.
Source: ABC Radio National – Breakfast

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