The Federal Coalition has announced plans to substantially reduce Australia's immigration intake, proposing to cut net overseas migration to 100,000 people annually during its first two years in government.

Opposition Leader Angus Taylor said the policy would represent the largest reduction in immigration in Australian history, bringing migration levels to their lowest since the late 1990s, excluding the COVID-19 pandemic.

Net overseas migration reached approximately 292,100 people in the year to March 2026. Under the Coalition's proposal, annual migration would be reduced to 100,000 for two years before increasing to 130,000 in the third year and 160,000 in the fourth.

The Coalition also proposes reducing Australia's temporary visa population by approximately 650,000 over four years, while increasing the number of temporary skilled visas by 100,000 to address labour shortages.

Other proposed changes include limiting new international student enrolments to 240,000 annually, abolishing certain bridging and temporary graduate visas, and halving the humanitarian intake from 20,000 to 10,000 places each year.

The permanent migration program would remain capped at 185,000 places, with a greater emphasis on skilled migrants.

Working holiday-makers would also face higher visa fees unless they undertook employment in regional areas, particularly industries such as agriculture.

Taylor argued that reducing population growth would ease competition for rental properties and reduce pressure on housing, transport and public infrastructure.

Beyond the Coalition's fifth year in government, annual net migration would be linked to the number of new homes completed, which totalled approximately 173,367 in the year to March 2026.

The proposal attracted criticism from the Australian Chamber of Commerce and Industry, which warned that substantial immigration reductions could harm businesses and economic growth.

One Nation leader Pauline Hanson also criticised the announcement, arguing that the Coalition had adopted elements of her party's immigration policy. One Nation had previously proposed reducing the temporary visa population by 750,000 over three years.

The Coalition maintained that its proposal would be budget-neutral and improve economic conditions, although its effects on housing affordability, labour availability and government revenue remain contested.

The changes are Coalition policy proposals and would require implementation following a change of government.