Housing bodies back migration changes, yet demand further reform

Burke described the package as the “next stage” of the government’s migration agenda, designed to meet budget forecasts for net overseas migration of 245,000 this financial year and 225,000 in 2027–28.

Its construction-facing measures include a redesigned skilled-migration points test, developed with Treasury, which will give trade qualifications in construction the same value as university qualifications.

Construction will also be added to priority visa-processing arrangements alongside sectors including healthcare, education, resources, agriculture, aquaculture, and fishing.

During his speech, Burke rejected the claim that immigration alone caused the housing shortage, but noted that migration had to be part of the response.

“The housing shortage we have is not caused by immigration. But immigration needs to be part of the solution for the housing crisis,” Burke said.

Supply-side focus welcomed

HIA chief economist Tim Reardon said the reforms offered a more balanced, long-term approach to migration, with the potential to give industry more reliable access to the skilled workers needed to lift housing output.

“Today’s announcement by The Minister for Home Affairs, The Hon. Tony Burke MP, provides a balanced, long-term direction for Australia’s migration system, with stable and reliable pathways for the skilled workers the economy needs,” Reardon said.

“Of particular importance to the residential building industry is the recognition that skilled tradespeople are essential to increasing Australia’s housing supply.”

Reardon said a system that recruits people with the right skills, properly assesses their qualifications, and processes applications efficiently could expand the residential building sector’s capacity.

“A demand-driven migration system that continues to attract skilled construction workers to Australia, recognises their qualifications appropriately and processes their applications efficiently will help expand the industry’s capacity to build the homes Australia needs,” he said.

“If these reforms successfully combine greater recognition of trade qualifications, priority visa processing for construction workers and more efficient recognition of overseas skills, they represent a significant improvement in Australia’s approach to building the construction workforce.”

The chief economist also linked a better-targeted migration system to the uneven conditions builders have experienced in recent years.

“These policies can work to mitigate the boom to bust cycles that the building industry has endured over recent years,” he said.

Broader clampdown unveiled

Alongside the skilled-migration changes, the government will tighten several temporary visa pathways in an effort to curb net overseas migration.

Most international students will no longer be able to bring family members to Australia, while family members already in Australia will retain their existing visas.

International students will also generally be able to extend their visa for further study only where they are moving to a higher qualification.

Separately, new visitor visas will carry a “no further stay” provision, intended to prevent visitor visas being used as a route into bridging visas or longer onshore stays.

Working holiday-makers will further face a ballot system for access to second- and third-year renewals.

Applicants for a second year will still require 88 days of regional work, while third-year applicants will still require six months of regional work.

Available second-year places will fall from 57,000 to 45,000, while third-year places will drop from 31,000 to 5,000.

Burke also flagged discussions with the United Kingdom over the growth in British backpackers following the Australia–UK free trade agreement.

He said the number of UK working holiday-makers in Australia had risen from around 17,000 when the agreement was signed to just under 80,000.

The enforcement component includes 100 additional compliance officers and 250 more detention beds for visa overstayers while they organise departure.

Builders call for further reform

Meanwhile, Master Builders Australia said the construction provisions were a positive development, but noted they would be inadequate on their own to meet the workforce demands created by Australia’s housing targets.

“As of September 2025, around 7,040 skilled visa holders were working in core construction trade occupations nationally. That is a number wholly inconsistent with the scale of this challenge,” Master Builders Australia’s CEO Denita Wawn said.

Wawn added that the problem was not confined to attracting workers from overseas, adding that many permanent migrants with relevant qualifications were already in Australia, but remained unable to work at their skill level due to current regulations.

“At the same time, an estimated 18,400 permanent migrants already living in Australia hold building and construction qualifications but are working below their skill level, blocked by slow, costly, and fragmented skills recognition and licensing arrangements,” she said.

Wawn said the government needed to extend its pro-construction focus across the wider set of barriers constraining supply.

“Today’s announcement represents progress, but it will not be enough on its own to meet Australia’s housing ambitions,” Wawn said.

“If the government is serious about delivering the National Housing Accord, it must adopt a pro-construction approach across all barriers to supply ahead of MYEFO, not push us further backwards.”

[Related: LNP proposes building code overhaul, slams expanded deposit scheme]