Lyla Lindsey
Australia has experienced significant fluctuations in migration patterns over the years, with various factors influencing the number of people migrating to the country. In 2018, Australia saw an influx of 63,680 permanent visa holders and 192,940 temporary visa holders, contributing to an overall population increase of 248,440 people due to overseas migration. The following year, in 2019, Australia's net migration reached a record 659,000, marking a one-third increase from the previous year. This surge in migration has sparked debates about the impact on housing, transport, infrastructure, and services in Australian cities. The pandemic also played a role in the unusual migration patterns, with border closures initially leading to a low level of net migration and subsequent policy changes enabling people to remain in Australia, resulting in a temporary surge.
| Characteristics | Values |
|---|---|
| Migration increase in 2022 | 659,000 |
| Net migration in September 2023 quarter | 145,200 |
| Net migration in March 2023 quarter | 157,684 |
| People leaving New South Wales | 33,000 |
| People moving to Queensland | 32,000 |
| People moving to Western Australia | 10,000 |
| Net migration in 2021-22 | 300,000 |
| People who arrived in October 2022 | 1.2 million |
| People who departed in October 2022 | 1 million |
| Short-term visitor arrivals in October 2022 | 430,470 |
| Short-term visitor departures in October 2022 | 360,460 |
| Australian citizens who arrived for the short-term in October 2022 | 721,860 |
| Australian citizens who departed for the short-term in October 2022 | 609,160 |
| People who arrived on a permanent visa in 2018 | 63,680 |
| People who arrived on a temporary visa in 2018 | 192,940 |
| People migrating to Australia with a permanent visa in 2008 | 85,900 |
| People migrating to Australia with a permanent visa in 2016 | 83,270 |
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What You'll Learn
Migration policies
Australia has long been a popular destination for migrants, with over 7 million people settling in the country since 1945. The nation's migration policies have evolved over time, reflecting various economic and social considerations.
Historically, Australia's migration policies favoured specific ethnic and racial groups, with the country's early history marked by European colonisation and the infamous "White Australia Policy", which restricted the entry of non-White settlers. This policy was maintained for much of the 20th century but was gradually relaxed after World War II and officially abolished in 1973, marking a shift towards multiculturalism in immigration policies.
Today, Australia's migration policies are designed to achieve a range of economic and social outcomes. The Migration Program, set annually, includes skilled migration and family reunion programs as its largest components. Australia's high ranking as a desirable destination for individuals seeking a high-quality life has resulted in a recent surge in net migration, with population growth exceeding expectations.
In response to this surge, the Australian government has implemented migration-cutting policies. These include imposing "no further stay" conditions on visitor visas to prevent exploitation and expressing intentions to reduce migration arrivals. However, businesses have cautioned against making the migration system too restrictive, emphasising the need for skilled labour.
The impact of migration on Australia's housing market and labour force is complex. While some argue that high migration has contributed to housing and rental crises, others refute these claims, highlighting the multifaceted nature of these issues. Overall, Australia's migration policies continue to evolve, balancing economic needs, social considerations, and public sentiments.
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Impact on housing
Australia has experienced high rates of immigration in recent years, with a record net annual increase of almost 550,000 people in 2023, lifting the country's population by over 650,000. This significant influx of migrants has had a notable impact on the housing market, particularly in terms of rental properties and housing prices.
Overseas migration has been identified as a key factor in the surging demand for housing across Australia. The rapid population growth has propelled the already high demand for housing, resulting in a housing affordability crisis. The average house price in Sydney stands at $1,397,366, while in Melbourne, it is $943,725, making homeownership unattainable for many Australians, especially first-time buyers. This situation presents an opportunity for investors, as rental yields are high in the major cities due to the demand from international students and skilled migrants.
A study by the Australian Housing and Urban Research Institute found that migration accounted for approximately one-third of the increase in rental prices over the past two decades. This highlights the link between migration inflows and rising rental costs observed across major Australian cities. The limited housing supply and government inaction have exacerbated the rental crisis, with advertised rents increasing by 10% in the past year. With only 1.1% of rental properties available for lease, the market is highly competitive, and rent prices are projected to continue climbing.
The impact of migration on housing prices varies across different regions of Australia. Using data from the 2006, 2011, and 2016 censuses, researchers found that a 1% increase in immigrant inflow relative to a postcode's population resulted in a 0.9% annual rise in housing prices. This effect was more pronounced in recent years and was most significant in the states of New South Wales and Victoria and the cities of Melbourne and Adelaide. Chinese and Indian immigrant groups were found to have a strong positive influence on housing prices.
While migration has undoubtedly contributed to the housing demand and price increases, it is not the sole factor driving the complex dynamics of the housing market. Other elements, such as interest rates, land availability, construction costs, government policies, and investor activity, also play crucial roles in shaping the intricate landscape of the Australian real estate industry. Additionally, the COVID-19 pandemic and related border closures and policy changes have had unusual effects on migration patterns and housing demand, further complicating the relationship between migration and housing.
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Refugees and humanitarian entrants
Australia has seen a recent surge in net migration, with a record annual increase of almost 550,000 people, despite the government's efforts to reduce migration. This increase is attributed to policies that allowed people to remain in the country during the pandemic and a rebound in migration after border closures.
Regarding refugees and humanitarian entrants, Australia has two pathways for entry: the Migration Program and the Refugee and Humanitarian Program. The latter, established in 1977, is specifically designed for refugees and those seeking protection ('humanitarian entrants'). This program has two parts: 'offshore' and 'onshore'. The offshore program facilitates the resettlement of refugees and those in need of protection who are overseas. The onshore program grants protection visas to asylum seekers already in Australia.
According to the Australian Institute of Family Studies, 85% of humanitarian entrants are granted visas before their arrival (offshore), while 15% are asylum seekers who obtain permanent protection visas after their arrival (onshore). These entrants come from diverse cultural and national backgrounds and reside in various metropolitan and non-metropolitan areas across Australia.
English language proficiency is crucial for humanitarian migrants' social and economic success. It directly impacts their employability and income potential. Additionally, further education and vocational training enhance their chances of securing employment, helping overcome challenges such as pre-migration trauma and disrupted education.
In conclusion, while Australia experiences overall high migration rates, it also specifically facilitates the entry and resettlement of refugees and humanitarian entrants through dedicated programs. These entrants face unique challenges but can achieve positive outcomes through language proficiency and access to education and employment opportunities.
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Interstate migration
Australia has experienced significant interstate migration, with people moving across state or territory boundaries, changing their usual place of residence. In the year up to September 2023, there was notable movement within the country, with 33,000 people leaving New South Wales, 32,000 moving to Queensland, and 10,000 migrating to Western Australia. Queensland consistently gained people through net interstate migration, with a net gain of 7,000 people in the March 2021 quarter, while Victoria and New South Wales experienced net losses during the same period.
The Australian Bureau of Statistics data for the March 2021 quarter revealed further insights into interstate migration patterns. South Australia gained people from Victoria (+380) but lost some to Queensland (-270). Greater Adelaide experienced a net gain of 60 people, a positive shift from the net loss of 250 in the previous quarter. Meanwhile, Greater Perth in Western Australia had a net gain of 1,600 people, with net gains from both within the state and interstate.
While interstate migration is an essential aspect of Australia's overall population dynamics, international migration has also played a significant role in shaping the country's population. In the 2023-24 financial year, net overseas migration contributed a net gain of 446,000 people to Australia's population, a decrease from the previous year's record of 536,000. The COVID-19 pandemic and related border closures in 2020 and 2021 significantly impacted migration patterns, leading to a temporary surge in net migration as policies enabled people to remain in Australia.
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Student visas
Australia has seen a significant increase in net migration, with a record annual rise of 659,000 people. This has been influenced by policy changes that allowed people to remain in the country during the pandemic.
Now, let's focus on student visas specifically.
A student visa is a type of visa that allows non-citizens to enter and remain in Australia for the duration of their studies. The Student Visa (Subclass 500) is the most common type of student visa in Australia. It offers multiple entries and allows students to stay in the country throughout their course, with a maximum duration of five years.
Requirements and Restrictions
To obtain a student visa in Australia, individuals must first enrol in a course at an Australian educational institution. They will then need to provide a Confirmation of Enrolment (CoE) from the institution as proof of their educational purpose. Additionally, students are required to demonstrate that they meet the Genuine Student (GS) requirement by answering questions about their circumstances, reasons for studying in Australia, and the benefits of studying abroad.
Maintaining adequate health insurance is also a crucial aspect of the student visa requirements. Students must have Overseas Student Health Cover (OSHC) for the full duration of their stay, which is facilitated by their host institution, and its cost is included in the program.
Work Rights and Restrictions
Student visa holders in Australia have the right to work, but this is subject to strict restrictions. Students are permitted to work up to 48 hours per fortnight during their studies, including exam periods. This limit also applies before their course starts and during breaks if the work is related to another course that counts towards their main program. Unlimited work hours are allowed during scheduled course breaks and for those pursuing graduate degrees, such as master's or doctoral programmes.
It is important to note that volunteer and unpaid work are included in the 48-hour fortnightly limit. Family members accompanying students on their visa also have the same work rights, but they cannot exceed 20 hours per week, even during holidays.
Processing Time and Fees
The processing time for student visa applications varies, but it typically takes around four weeks. Students are advised to apply for their visa as early as possible, and the application fee is currently AUD$535. From 1 July 2025, the fee will increase to AUD$2,000 per visa application unless exempt.
The student visa process in Australia involves meeting specific requirements and adhering to work restrictions. By understanding these conditions, international students can take advantage of the opportunity to study and work in the country.
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Frequently asked questions
Migration to Australia rose by one-third in 2023, increasing the country's population by a record 659,000 people. Net migration in the September 2023 quarter was 145,200, close to government expectations.
The surge in migration was attributed to various factors, including the extension of temporary visas during the pandemic, policy changes, and a rebound in migration after border closures.
People migrate to Australia through various visa categories, including permanent visas (Family, Skill, Special Eligibility, and humanitarian visas) and temporary visas (Vocational Education, Higher Education, Student, Temporary Work, Visitor, and Working Holiday visas).
