Labor Re-Elected: What It Means for Australia’s Immigration Landscape
On 3 May 2025, Australia’s federal election concluded with Prime Minister Anthony Albanese successfully leading the Labor Party to re-election. This outcome sets a new tone for the direction of immigration policy in Australia. For those aspiring to migrate, understanding the implications of Labor’s continued leadership is more crucial than ever.
Migration Planning Levels & Net Overseas Migration
While the overall migration cap remains steady at 185,000 places for the 2025–26 financial year, Labor plans to significantly reduce the net overseas migration (NOM) intake—from 335,000 in 2024–25 down to 260,000. This suggests that although permanent skilled and family migration categories will stay relatively stable, competition for student and short-term visas, including renewals, will intensify.
At the same time, Labor is increasing its support for employer-sponsored skilled migration. Notably, the allocation for the 482 Temporary Skill Shortage visa will rise sharply—from 36,825 places in 2023–24 to 44,000 in 2025–26, an increase of 7,175 places. This highlights the growing importance of employer sponsorship within Australia’s migration framework.
Visa Policy Changes from 1 July 2025
From 1 July 2025, salary thresholds for skilled migration visas will be adjusted upwards by 4.6%. Specifically:
- Core Skills Income Threshold (CSIT) will increase from $73,150 to $76,515 (applies to 482 visa – Core stream and 186 ENS visa).
- Specialist Skills Income Threshold (SSIT) will go from $135,000 to $141,210 (for 482 visa – Specialist stream).
- Temporary Skilled Migration Income Threshold (TSMIT) will also rise to $76,515, affecting visas like the 494 (Employer Sponsored Regional) and 187 (RSMS).
These increases mean applicants will face higher income requirements, in addition to needing strong professional skills. On the upside, Labor is easing work experience rules for 186 visa applicants: international graduates who work full-time in Australia for a total of two years (regardless of employer) can apply for PR—removing the previous need for two years with the same sponsor.
Labor has also promised to offer more PR pathways for temporary visa holders, offering renewed hope for many already in Australia.
Occupation Priorities & Skilled Pathways
Labor’s policy direction continues to favour public-sector and high-demand occupations. Roles such as nursing, early childhood education, structural engineering, and social work will remain in high demand and benefit from clearer pathways to permanent residency.
Meanwhile, high-demand disciplines like IT, business, accounting, and engineering will still have strong prospects—particularly through employer-sponsored visas.
A More Predictable Policy Environment
Compared to some of the more radical stances from other parties, Labor’s approach is seen as steady and pragmatic. This stability offers migrants a greater opportunity to plan ahead. However, it’s important to note the new international student enrolment caps imposed by the Department of Education. Once a university reaches 80% of its student visa allocation, visa processing times may increase significantly, and scrutiny will be tighter.
Labor’s re-election brings both tightening and opening of immigration pathways. While higher income thresholds and stricter student visa caps pose new challenges, increased PR opportunities and a stable policy environment provide real opportunities. For those considering migration, staying informed and planning ahead will be key to success.
If you have any questions or would like professional assistance, please feel free to contact us at Riverwood Migration (Email: [email protected]). We are committed to providing transparent, expert migration services to help you achieve your dream of moving to Australia.
