Australia Introduces Multi-Year Migration Planning Model to Strengthen Long-Term Workforce and Infrastructure Development

Australia is set to implement a multi-year migration planning model starting from the 2025–26 Migration Program, extending the planning horizon to four years. This strategic shift aims to enhance migration policy alignment with national economic, social, and demographic priorities.

Key Objectives of the Multi-Year Planning Model

  • Better Policy Alignment: By extending the migration planning cycle, the government seeks to ensure migration settings align with long-term skills development, population growth, infrastructure expansion, housing availability, and service delivery (minister.homeaffairs.gov.au).
  • Improved Workforce Planning: The new approach allows for greater predictability and stability in the skilled migration program, ensuring a steady supply of workers for critical sectors.
  • Collaborative Federal-State Framework: The model strengthens partnerships between the federal government and state and territory administrations, enabling regional areas to influence migration policies based on their specific labor market needs (homeaffairs.gov.au).
  • Housing Supply Consideration: For the first time, housing supply levels will be a key determinant in shaping migration policies, ensuring that immigration growth does not outpace available housing and infrastructure.

Implications for States and Territories

The new multi-year planning model grants states and territories a more structured role in shaping migration policy. Instead of reacting to short-term federal targets, regional governments will have the opportunity to:

  • Advocate for skilled migration tailored to local economic and labor market demands.
  • Improve long-term housing and infrastructure planning to accommodate migration levels.
  • Provide clearer pathways for regional skilled migration programs, including employer-sponsored visas (immi.homeaffairs.gov.au).

Government’s Perspective

Minister for Immigration, Citizenship, and Multicultural Affairs, Andrew Giles, emphasised the importance of long-term migration planning, stating:

"Extending the outlook of the Migration Program through a multi-year planning model will better align migration planning with skills priorities, population growth, infrastructure, housing, and service planning across all levels of government." (minister.homeaffairs.gov.au).

How Will This Impact Future Migration Policies?

While the 2024–25 Migration Program planning level has been set at 185,000 places, the introduction of the multi-year model suggests that future allocations will be more dynamic and responsive to national workforce priorities. The upcoming planning cycle for 2025–26 to 2028–29 will undergo public consultations later this year, allowing businesses, unions, and state governments to provide input.

Conclusion

Australia's transition to a multi-year migration planning model represents a major evolution in its migration strategy. This shift will create a more adaptable and stable migration system, ensuring that skills shortages, infrastructure capacity, and economic growth are better integrated into migration policy decisions.

Public consultation on the first four-year cycle will begin later this year, shaping the 2025–26 to 2028–29 Migration Program.