The Australian government has announced a significant increase in the permanent migration cap to 195,000 places for the 2022-23 financial year, up from 160,000. The move is part of a broader package of 36 actions agreed at the government's jobs summit, aimed at addressing critical workforce shortages across the economy.
Home Affairs Minister Clare O'Neil confirmed the increase, emphasising a shift towards permanent residency and citizenship, rather than short-term migration. The regional migration allocation will rise to 34,000 places, an increase of 9,000, while state and territory allocations will jump from 11,000 to 31,000. The government also plans to hire 500 additional staff to clear a visa backlog of 900,000 applications.
Prime Minister Anthony Albanese and Treasurer Jim Chalmers concluded the two-day summit on Friday, with Chalmers describing the migration cap as a 'cautious and responsible lift' that would not replace training or ignore housing needs. The government will release $575 million for social and affordable housing through the National Housing Infrastructure Facility.
To encourage older Australians into the workforce, the government announced a $55 million 'time-limited' measure providing pensioners with a $4,000 income tax credit, on top of the existing $7,800 earnings threshold before pension payments are reduced. Pensioners will also retain their pension and concession card for up to two years if their income temporarily exceeds the threshold.
Business groups welcomed the migration increase, with Australian Chamber of Commerce and Industry chief Andrew McKellar calling it a 'significant step forward'. However, Opposition Leader Peter Dutton questioned whether the cap would be reached and raised concerns about housing market pressures. The government also committed to tackling migrant worker exploitation and extending Covid-era measures allowing temporary workers to stay until June 2023.
