The article discusses the Australian Coalition's plan to cut net migration by 100,000, focusing on the potential impact on working holidaymakers (backpackers). Peter Dutton, while not specifying targets, acknowledged that cuts to the working holidaymaker program would likely be necessary to achieve the reduction.
With working holidaymakers being a significant contributor to net migration, reducing their numbers is seen as unavoidable. The current program's generous terms, such as extended visa lengths and higher age limits, contribute to the large numbers. Cutting back on these visas faces political challenges – renegotiating agreements with multiple countries and opposition from the tourism sector and regional Australia.
The Coalition aims to reduce permanent migration, targeting skilled migration rather than family visas. This will necessitate drastic cuts in the skilled migrant intake, potentially compromising the existing two-thirds allocation to skilled migrants. While prioritizing crucial trades and healthcare professions, this would negatively affect other skilled streams, possibly leading to resistance from businesses and state governments.
The article highlights potential economic repercussions. Cutting the skilled migrant intake could be detrimental, as this stream generates more tax revenue than it consumes in government services. The consequences will need to be carefully assessed by the Treasury.