Burke unveils migration reforms: ‘Who arrives, who stays, who leaves’

Home Affairs Minister Tony Burke has announced a raft of migration reforms aimed at cutting net overseas migration to 245,000 this financial year, with tighter rules for students, graduates, working holiday makers and visa hopping. The changes include a new points test weighting for trade qualifications, No Further Stay conditions on visitor visas, and expanded compliance enforcement. Businesses and individuals affected should review their visa strategy now.

Home Affairs Minister Tony Burke addressed the National Press Club on 17 September 2026, where he outlined the Labor government’s migration policy and announced a range of measures designed to reduce net overseas migration. The government stressed the importance of a targeted migration program designed to address the needs of the Australian economy, with a particular focus on shortages in the construction, agriculture, fisheries, resources and education sectors.

Macpherson Kelley’s Migration team has reviewed the reforms outlined below to help clients navigate the changes and develop the best strategy to achieve a positive outcome.

Net overseas migration and processing times

The Australian Bureau of Statistics confirmed that the annual net overseas migration number was trending downwards, easing to 292,000 in the year to March, from 299,000 in December. By comparison, Burke announced a net overseas migration target of 245,000 for this financial year, to be further reduced to 225,000 by the end of the next financial year.

The Labor government intends to achieve these targets by restructuring allocations to programs that have the most positive benefit to the Australian economy, particularly in areas facing labour shortages. Burke announced that Ministerial Direction 119 will be split into separate priority directions for the permanent and temporary visa programs, enabling departmental officers to prioritise processing of applications with in-demand skills in critical sectors and regional areas. The points test will also be overhauled so that housing trade qualifications receive the same points weighting as university qualifications.

Students and graduates

The student and graduate visa programs are major levers for Labor to achieve its target number, with heavy restrictions being imposed on students and graduates travelling to Australia with families.

Student visa holders seeking to extend their stay will only be eligible for a further student visa should their proposed course of study offer a higher qualification.

Visa hopping

The government is also planning to introduce reforms to address the issue of ‘visa hopping’ where individuals travel to Australia and transition to other visas in an effort to extend their stay and manufacture an outcome contrary to the intentions of the migration system.

One measure announced is to introduce No Further Stay conditions on all visitor visas to restrict migrants from lodging applications onshore. This may prevent spouses from obtaining a bridging visa to allow them to remain in Australia during the lengthy processing of their partner applications.

Working holiday ‘backpackers’

The Working Holiday program has also received widespread changes. A ballot system will be introduced to assist in capping the allocations for backpackers seeking to stay beyond the first year. Visas for backpackers seeking to stay for a second year will be capped at 45,000 places, a reduction of 12,000 places from last year. The ballot will reduce third year places to 5,000, amounting to a reduction of 26,000 places when compared to last year. The regional work requirement remains in place for both extensions.

Processing times will vary based on the circumstances and year of the application. Applications for an initial visa for UK citizens will remain delayed given the rapid rate of growth in the program, whilst applications for years 2 and 3, which meet the regional work quota, will be prioritised to address regional labour shortages.

Compliance measures

The Minister also announced tougher compliance measures to ensure the enforcement of migration policy:

• Appointing 100 compliance officers to monitor migrants remaining in the community without a valid visa;
• Expanding detention capacity and exploring options to repurpose quarantine facilities into detention centres; and
• Changing the code of conduct for migration agents to address unmeritorious applications, including deregistration.

What this means for individuals and businesses

In light of these significant reforms, it is necessary for businesses and individuals alike to carefully consider their options and seek an assessment to establish the most efficient immigration strategy.

If you have any questions about how these reforms may impact you or your business, please reach out to a member of Macpherson Kelley’s Migration team today.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.