One Nation’s migration cut proposal sparks debate over Australia’s economy and living standards

One Nation’s Pauline Hanson announced a strategy to cut temporary migrants, chiefly international students and family members of skilled workers, by more than 750,000 over three years, requiring net overseas migration to turn negative before settling at a 130,000 cap. Labor aims for a longer-term net migration of 225,000, compared with the latest official figure of 292,000. Home Affairs Minister Tony Burke warned the plan would damage Australian services and the economy, whereas Hanson argues that high population growth has driven a per-capita recession and cites Canada’s recent reduction in temporary migrants as a model.

Canada’s CD Howe Institute projects modest GDP growth and possible employment declines as the country shifts to a lower-immigration era, but economists say the economy is merely adjusting. Critics note Canada’s context differs, with a larger post-pandemic surge and a recession backdrop, while Australia faces tight labour markets and ageing demographics that could strain fiscal sustainability if migration falls permanently. Analysts also warn that reliance on overseas labour has reduced incentives to train local workers, potentially deepening skill shortages.