Australia proposal caps net migration at 150,000 to limit nomad work options

How the proposed cap would work

Australia’s Coalition wants to tie annual net overseas migration or NOM, to new housing supply. The opposition says the plan would match migration levels to dwelling completions tracked by Housing Australia, with yearly reviews based on housing data.

The proposal is still just that, a proposal. Leaked figures suggest a cap somewhere around 150,000 to 200,000 a year, down from 306,000 in 2024-25 and below the current forecast for 2025-26.

Who would feel the squeeze

The biggest effect would fall on skilled migration pathways, employer sponsorship and some family streams, while tourist visas would stay outside the cap. Digital nomads and expats seeking longer-term work options could face tighter quotas if the Coalition’s plan becomes policy.

Businesses in ICT, engineering and other sponsored hiring sectors could see slower processing or fewer places if annual ceilings tighten. The Coalition has said critical skills would likely get priority, though it hasn’t finalized the numbers yet.

What to watch next

Angus Taylor is expected to set out more detail in his budget reply speech around May 15. If the Coalition wins office, the cap could start in 2027 and then adjust each year with housing data.

For now, employers are being told to front-load sponsorships in 2026 if they need workers in the pipeline. Read our full Australia guide for the complete picture and check visa updates for the latest policy changes.